Does AI dominance underscore U.S. exceptionalism?

Published 10/10/2025, 18:52
© Reuters

Investing.com -- Standard Chartered stated in a note this week that the “race for AI dominance is beginning to heat up,” with both the U.S. and China recently announcing their national AI roadmaps. 

While emerging markets such as Malaysia and India are said to be “punching above their weight in the ranking of innovation clusters,” the bank said, “the U.S. remains the leader on most measures of AI capability.

According to Standard Chartered, U.S. strength spans not only actual investments already made in AI (both public and private sectors) but also enabling factors such as infrastructure, human capital and regulatory ease. 

The bank believes the impact of AI on productivity “has been limited so far, with more gains seen in the consumer surplus instead,” but added that this could change as adoption of AI technologies becomes more widespread.

“The U.S. is best placed to benefit from any AI-driven productivity boost,” Standard Chartered analysts wrote, suggesting that the technology could support the economy, USD, and U.S. exceptionalism.

Standard Chartered added that “the U.S. is on the cusp of higher real rates, USD appreciation and renewed faith in U.S. exceptionalism if AI or broader technologies generate a significant productivity shock.”

Meanwhile, “one could view the U.S. in recent decades along the lines of a fairly successful hedge fund or private equity firm – i.e., borrowing relatively cheaply, investing in risky technologies, and reaping benefits in terms of wealth creation,” stated the bank.

However, Standard Chartered also cautioned that “if AI and other technologies sputter, the U.S. would likely be just another G10 economy with mediocre demographics, elevated external debt and a poor fiscal position.”

 

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