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TRENDS Insight: AI Reshaping International Relations and Posing Existential Challenges

25 Jul 2025

TRENDS Insight: AI Reshaping International Relations and Posing Existential Challenges

25 Jul 2025

A new insight by TRENDS Research & Advisory revealed that the artificial intelligence revolution is profoundly transforming the landscape of international relations, offering unprecedented opportunities while introducing potential existential risks.

Co-authored by Dr. Mohamed Abu Ghazla, Director of TRENDS’ Germany Office, and researcher Rashid Al-Hosani, the insight argues that AI is no longer just a technological tool; it has become a new actor in global geopolitics. From national security frameworks and decision-making processes to negotiation strategies and foreign policy outputs, AI is now embedded in the heart of statecraft.

Its capabilities—from processing massive data sets and forecasting future scenarios to making near-autonomous decisions—challenge the traditional human aspect of international politics and redefine power, influence, and global order.

The insight warns of growing disparities between the technologically advanced Global North and the developing Global South, raising the specter of a new form of “algorithmic colonialism”. As a few countries and corporations dominate the development and deployment of AI systems, others risk being left as passive recipients of rules and technologies they had no part in shaping.

In this respect, the authors pose urgent ethical questions: Who controls the algorithms that may dictate military and diplomatic decisions? Who holds sovereignty over the code that could determine the fate of entire populations? Will AI become a global peace force or a catalyst for a new and more dangerous Cold War?

The insight highlights AI’s growing influence in diplomacy, conflict prevention and resolution, strategic decision-making, and global security.

It also explores the technology’s economic implications, from reshaping global supply chains and trade dynamics to sparking legal and diplomatic disputes over intellectual property and data rights.

Crucially, the insight redefines the notion of sovereignty in the digital age—not as control over physical borders, but over digital assets, data, and advanced technologies. This shift, especially in the intensifying AI race between the U.S., China, and the EU, poses a significant challenge for smaller nations, which risk marginalization if they fail to keep pace with technological progress.

The insight concludes by emphasizing that harnessing AI’s potential while mitigating risks requires ethical governance frameworks rooted in transparency, equity, and accountability. International cooperation is now essential to establish binding treaties and regulatory structures that prevent misuse, ensure fair access, and align emerging technologies with sustainable development and global stability goals.