The United States continues to lead the world in artificial intelligence (AI) innovation, according to the latest AI Index report from Stanford University's Institute for Human-Centered AI.
The report evaluates the "vibrancy" of the AI industry across various dimensions, including research activity, investment levels, and the pursuit of responsible AI practices.
"The gap is actually widening" between the U.S. and China, said computer scientist Ray Perrault, director of the steering committee that oversees Stanford's AI Index.
Stanford's findings show China eclipsed in key areas such as research output and private investment.
"The U.S. is investing a lot more, at least at the level of firm creation and funding."
The United States has maintained its top position since 2018, bolstered by substantial private AI investment, which reached $67.2 billion last year, significantly surpassing China's $7.8 billion.
The U.S. also leads in publishing research focused on responsible AI development. Home to major AI companies like Google, Meta, OpenAI, and Anthropic, the U.S. has produced numerous influential AI models that shape the technology's development and application.
Additionally, the country has enacted several AI-related laws, though comprehensive federal regulations are still pending as the country waits on Republican President-elect Donald Trump's approach.
China, while trailing the U.S. in overall ranking, has demonstrated strong growth in AI innovation. The United Nations intellectual property agency reported that China has filed more patents related to generative AI than any other nation.
It says, "China's focus on developing cutting-edge AI technologies and increasing its R&D investments has positioned it as a major AI powerhouse."
Chinese universities have produced a significant volume of AI research publications, and companies like Baidu have developed notable AI models, such as the chatbot Ernie.
The United Kingdom ranks third, attributed to its robust research and development infrastructure and leading computer science universities that cultivate a skilled AI workforce.
The UK is also home to DeepMind, Google's AI subsidiary, whose co-founder recently received a Nobel Prize.
The country has shown a high level of governmental engagement with AI, having more mentions of AI in parliamentary proceedings than any other nation, pushed by former Prime Minister Rishi Sunak.
In the previous year, the UK hosted the world's first international AI safety summit.
India follows closely in fourth place, supported by a strong AI research community, increased economic investments in AI, and active public discourse on AI topics across social media platforms.
The United Arab Emirates placed fifth, having attracted significant investments including a $1.5 billion investment from Microsoft into the Abu Dhabi-based tech firm G42, which operates data centers and has developed Jais, considered the world's leading Arabic-language AI model.
Completing the top ten are France, South Korea, Germany, Japan, and Singapore.
France, home to the emerging AI startup Mistral, ranks high in AI policy and governance. Both France and Germany are part of the European Union's sweeping new AI Act, which implements safeguards on various AI applications based on their risk levels.
The EU is also following the U.S. in developing a plan to expand semiconductor production within the bloc.
This article includes reporting from the Associated Press.