The pace of technological adoption: the tech race and geopolitical factors

Written by: Jagna Kalinowska

Throughout history, the race to dominate new technology has not only fueled economic revolutions but also reshaped the balance of global power. Today, the rapid pace of technological adoption is accelerating at an unprecedented rate, redefining industries, economies, and international relations.

In recent years, we have witnessed a technological revolution that is transforming not only businesses but also everyday life. From the rapid shift to remote work during the pandemic to the explosion of artificial intelligence tools, the pace of change shows no signs of slowing. AI-driven innovations continue to evolve, reshaping industries and surprising even the most forward-thinking analysts.

In this article and report, we will focus on how rapid technological adoption is reshaping the way organizations operate, compete, and innovate. As businesses and governments strive to keep up with emerging technologies, the speed of adoption has become a defining factor in economic and geopolitical success.

If you want to focus on the topic of technology adoption in organizations, explore the insights in your copy of the Future of Work Report 2025: Lost & Found in Technology.”

The Tech Race

While past innovations, such as electricity for example, took decades to reach mass adoption, today’s break- throughs in artificial intelligence, quantum computing, and biotechnology are being implemented globally in just a few years or even months. This speed is no longer just a measure of progress; it is a crucial factor in determining which companies and nations will lead the future – and which will struggle to keep up.

This phenomenon, often referred to as the tech race, is not just about innovation but also about strategic control. Global superpowers and industries are fiercely competing to lead in critical advancements such as artificial intelligence, automation, and digital infra- structure. Technology has always been more than a tool for progress – it is a strategic asset that shapes global in”uence and drives economic growth. According to a KPMG report, 87% of organizations have successfully leveraged technology to increase pro!ts over the past two years. The pressure to adopt new technologies as a driver of growth is now firmly entrenched in business strategy. However, 78% of respondents expressed concern that they are not keeping pace with technological change, while 80% fear that risk aversion among senior management is slowing adoption.

Predicting the macroeconomic impact of AI development in this matter remains a complex and uncertain task. However, the momentum is undeniable. Currently, 56% of startups are using AI to enhance efficiency, and 13% have made AI a core part of their business model. Yet, AI adoption also presents challenges – 3% of companies report that AI negatively impacts their business, forcing them to make fundamental changes.

A McKinsey Global Institute report (2023) projected that generative AI could contribute $17–25 trillion to the global economy, boosting labor automation and driving 1.5–3.4 percentage points of additional economic growth annually in developed nations over the next decade. Meanwhile, Goldman Sachs estimated a 7% increase in global GDP and 1.5% annual productivity growth in the U.S. due to AI advancements.

Geopolitical Factors

The battle for tech supremacy is no longer just about innovation – it is deeply tied to national security, trade policies, and international alliances. The world’s leading powers (particularly the United States and China) are locked in an intense struggle to control critical technologies. This competition influences global supply chains, imposes export restrictions, and shapes regulatory landscapes.

Meanwhile, the European Union has also taken steps to secure its technological future, launching the EU Chips Act, a $43 billion initiative aimed at boosting semiconductor production within Europe to reduce reliance on foreign suppliers.

At the same time, concerns over technological fragmentation – where global technology ecosystems split along geopolitical lines – are growing. If this trend continues, we may see the emergence of separate technological spheres, where data flows, AI regulations, and supply chains are governed by competing geopolitical blocs rather than a unified global market.

As a result, technological adoption is no longer just a race for progress – it has become a high-stakes contest where speed, strategy, and sovereignty determine the winners and losers.