Every country says it wants to win the AI race. But the countries actually pulling ahead are not asking how to build the smartest AI — they are asking how to build the place where the smartest people want to build. To break this down is Michael O'Loughlin, USA Ambassador for the MENA Fintech Association and Managing Partner at Argonautic Global. Michael, welcome back to the show.
Thank you very much. Good morning.
What are the countries winning the AI race actually doing differently?
I am going to answer this in a way you might not expect. The winners are not necessarily building the best AI. They are building the best environment for AI to flourish. Those are two completely different things.
What separates a country that attracts AI talent and capital from one that watches it pass by?
Everyone is focused on the model right now — I am guilty of that too. But the countries starting to flourish are focused on the ecosystem: talent, capital, regulation, education, entrepreneurs. Sprinkle trust on top of that and how we all work together, and you start to realise that innovation is no longer just a technology problem. It is a coordination problem. That is what we really need to focus on.
Banks, venture capital firms, and governments are struggling to deliver on innovation. Why?
I remember a senior government official recently asking how they could become the next Silicon Valley. My answer was: I think you are asking the wrong question. The better question is how do you become a place where extraordinary people choose to build? Countries do not attract innovation because they ask for it or shoot a flare into the sky. They attract it because they remove the friction. And that friction is very real.
What does building a better environment for AI actually look like in practice?
From a fintech and banking perspective — banks haven't really changed. They do want innovation, right up until it actually changes a committee, a procurement process, or someone's job description at a senior level. Everyone loves innovation right up until the disruptors actually disrupt the management team. Innovation usually loses the calendar invite for the important meetings.
What do the countries pulling ahead in AI understand that everyone else is still missing?
The countries making it work are not perceiving AI as a bottleneck. They are removing friction, cutting red tape, relaxing licensing requirements where appropriate while keeping things safe and secure for their citizens. And the ones that are working together — regulators, government, large companies, and smaller startups plugging in — those are the ones that are going to win at the end of the day. The question every institution needs to ask is whether it can adapt. That question is becoming more pressing every month.
Thank you so much, Michael. Always interesting to get your perspective on this. Thanks for joining us.
Thank you very much.
