White House CEA Report Frames AI as Catalyst for "Great Divergence" Between Nations

Summary

The White House Council of Economic Advisers released a report titled "Artificial Intelligence and the Great Divergence" on January 21, 2026, drawing a historical parallel between AI's potential economic impact and the Industrial Revolution's "Great Divergence" — the period when industrializing nations experienced accelerated growth while others stagnated. The report argues that countries leading in AI investment, infrastructure, and adoption — primarily the United States — are positioned to cap