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3
Moderate capability · Slow diffusion

Fragmented advantage

Capable AI, but adoption remains concentrated in some nations and sectors

Illustration of Fragmented advantage

AI capability reaches a level where it handles serious analytical, research, and engineering work. But adoption is uneven — concentrated in the US, parts of Europe, and East Asia, and within those regions, in large technology-forward firms and well-resourced government agencies.

A gap opens between early adopters who are compounding productivity gains and the rest who are still running pilots. This is a world of widening asymmetry, where the advantage accrues to those who moved first.

Capability is real but adoption is concentrated, not universal

Early adopters compound gains; latecomers face widening gap

Talent flows to high-adoption jurisdictions and firms

Geopolitical dimension: AI capability becomes strategic asset

Sector-by-sector adoption gaps emerge within WA

WA risks falling behind selectively. Some sectors (mining tech, METS) may keep pace through industry-led adoption. But government, education, healthcare, and SMEs risk being on the wrong side of the gap. The strategic question becomes: which sectors does WA actively push, and which does it leave to market forces?

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Adoption no regret
Strong
Institutional capability no regret
Strong
Talent no regret
Strong
Energy & compute hosting conditional
Strong
Startups & innovation conditional
Moderate