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Another Crazy Day in AI: Why Some Markets Thrive While Others Lag

Another Crazy Day in AI: An Almost Daily Newsletter

Hello, AI Enthusiasts.


A quick AI update before you call it a night… 🌙


A deep dive into 20 years of trade data reveals what really makes a country competitive in AI—education, infrastructure, and trade policies matter just as much as innovation. 📈🌎


Also making waves: Google just solved a decade-long microbiology problem in just 48 hours, and Microsoft’s new AI model for gaming is making game development faster and more immersive. 🚀


Here's another crazy day in AI:

  • What Economists found about AI trade and comparative advantage

  • AI cracks decade-long superbug mystery in days

  • Microsoft research unveils Muse for AI-powered game ideation

  • Some AI tools to try out


 

TODAY'S FEATURED ITEM: Economists Uncover AI Market Insights


A robotic scientist in a classic white coat with 'AI Scientist' on its back stands beside a human scientist with 'Human Scientist' on their coat, looking towards the AI Scientist.

Image Credit: Wowza (created with Ideogram)


As AI reshapes industries worldwide, what gives some countries an edge in the global AI economy while others struggle to keep up?


A team of leading European economists specializing in trade and technology—Alessandra Bonfiglioli, Rosario Crinò, Mattia Filomena, and Gino Gancia—analyzed two decades of US import data to uncover what drives comparative advantage in AI-intensive industries. Their research reveals that countries with more STEM graduates, stronger digital infrastructure, larger markets, and fewer restrictions on digital trade tend to dominate AI-driven exports. But as governments race to invest in AI, how can nations remain competitive without fueling an AI arms race?


Notes: The map reports the average values of the revealed comparative advantage index. Averages are computed over all sample years. | Source: Bonfiglioli, Alessandra and Crinò, Rosario and Filomena, Mattia and Gancia, Gino, Comparative Advantage in AI-Intensive Industries: Evidence from US Imports (January 15, 2025).
Notes: The map reports the average values of the revealed comparative advantage index. Averages are computed over all sample years. | Source: Bonfiglioli, Alessandra and Crinò, Rosario and Filomena, Mattia and Gancia, Gino, Comparative Advantage in AI-Intensive Industries: Evidence from US Imports (January 15, 2025).

Their findings point to several factors that set AI-leading nations apart:

  • AI-driven industries are expanding faster than others. Countries exporting AI-related goods and services to the US have grown 27% more rapidly than other sectors.

  • A well-trained workforce provides a crucial advantage. Nations with higher numbers of STEM graduates tend to be more competitive in AI-intensive industries.

  • Digital infrastructure plays a major role. Faster internet, widespread connectivity, and advanced computing systems contribute to a country’s ability to scale AI-driven exports.

  • Market size influences innovation and adoption. Larger economies have a natural advantage in developing and applying AI technologies.

  • Trade policies shape opportunities. Countries that impose fewer restrictions on digital trade see stronger growth in AI-intensive sectors.


Notes: The figure shows the average log of exports to the US, after controlling for country fixed effects, across ten deciles of the distribution of the country characteristic indicated on the horizontal axis of each graph. Solid lines and dots refer to the values and the linear regression lines for AI-intensive industries, while hollow dots and dashed lines refer to non-AI-intensive industries. | Source: Bonfiglioli, Alessandra and Crinò, Rosario and Filomena, Mattia and Gancia, Gino, Comparative Advantage in AI-Intensive Industries: Evidence from US Imports (January 15, 2025).
Notes: The figure shows the average log of exports to the US, after controlling for country fixed effects, across ten deciles of the distribution of the country characteristic indicated on the horizontal axis of each graph. Solid lines and dots refer to the values and the linear regression lines for AI-intensive industries, while hollow dots and dashed lines refer to non-AI-intensive industries. | Source: Bonfiglioli, Alessandra and Crinò, Rosario and Filomena, Mattia and Gancia, Gino, Comparative Advantage in AI-Intensive Industries: Evidence from US Imports (January 15, 2025).

The rapid expansion of AI-powered industries is reshaping global trade, but long-term competitiveness isn’t just about developing the latest technology—it’s about building the right foundation. A country’s ability to lead in AI depends on the systems that support innovation: education, infrastructure, and economic policies. These structural advantages don’t emerge overnight, which is why nations making strategic investments today are likely to hold their edge in the future.


For policymakers, this research highlights the importance of fostering STEM talent, strengthening digital infrastructure, and maintaining open trade policies. Businesses, too, can take note—success in AI-driven markets is closely tied to the environments in which they operate. As AI continues to evolve, the global economy will reward those who create the right conditions for growth rather than just those who move the fastest.




Read the full article here.

Read the full paper here.

 

OTHER INTERESTING AI HIGHLIGHTS:


AI Cracks Decade-Long Superbug Mystery in Days

/Tom Gerken, Technology Reporter on BBC


A new AI tool from Google has cracked a microbiology problem in just 48 hours—one that took scientists a decade to solve. Researchers at Imperial College London had been investigating how certain superbugs become immune to antibiotics. When prompted, the AI replicated their findings and even proposed additional hypotheses they hadn’t considered. The breakthrough demonstrates AI’s potential to revolutionize scientific discovery, significantly accelerating research timelines.



Read more here.

 

Microsoft Research Unveils Muse for AI-Powered Game Ideation

/Katja Hofmann, Senior Principal Research Manager and lead of the Microsoft Research Game Intelligence team


Microsoft has introduced Muse, a generative AI model designed for game development, capable of simulating gameplay sequences and generating visuals. Trained on human gameplay data, Muse can predict game outcomes, create diverse player actions, and even assist in game ideation. The model was developed in collaboration with Xbox Game Studios’ Ninja Theory, with an open-source version now available for researchers. Microsoft sees Muse as a powerful tool for game creators, helping shape the future of AI-driven game design.



Read more here.

Read the research here.

Fig. 1: Identified model capabilities. | Source: Kanervisto, A., Bignell, D., Wen, L.Y. et al. World and Human Action Models towards gameplay ideation. Nature 638, 656–663 (2025). https://doi.org/10.1038/s41586-025-08600-3
Fig. 1: Identified model capabilities. | Source: Kanervisto, A., Bignell, D., Wen, L.Y. et al. World and Human Action Models towards gameplay ideation. Nature 638, 656–663 (2025). https://doi.org/10.1038/s41586-025-08600-3
 

SOME AI TOOLS TO TRY OUT:


  • Yess - AI-powered sales research and meeting prep in minutes.

  • Scrybe - Grow your LinkedIn with AI-driven viral content ideas and posts in just minutes a day.

  • Career Dreamer - Google’s AI experiment for exploring career possibilities.

 

That’s a wrap on today’s Almost Daily craziness.


Catch us almost every day—almost! 😉

 

EXCITING NEWS:

The Another Crazy Day in AI newsletter is now on LinkedIn!!!



Wowza, Inc.

Leveraging AI for Enhanced Content: As part of our commitment to exploring new technologies, we used AI to help curate and refine our newsletters. This enriches our content and keeps us at the forefront of digital innovation, ensuring you stay informed with the latest trends and developments.





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