Artificial Intelligence and Geopolitics: Middle Powers in the Age of Algorithmic Power

Artificial Intelligence (AI) is transforming geopolitics by shifting power from physical assets to digital infrastructure, data, and algorithms. This article examines how middle powers, particularly Australia, navigate an era of algorithmic competition across four domains: compute infrastructure, data governance, talent and research, and regulatory standards. It highlights the strategic imperative for sovereign AI capabilities, robust R&D ecosystems, and active participation in global governance to mitigate systemic risks and shape norms. With great powers driving divergent regulatory approaches, middle powers must balance technological advancement with ethical governance to secure influence and resilience in a rapidly evolving global AI landscape.