Isam Zabalawi

Artificial Intelligence (AI) is reshaping labor markets, and there is growing recognition that early exposure to AI research is essential for future prosperity and long-term economic competitiveness. While higher education systems have traditionally emphasized postgraduate research and commercialization, the process of translating ideas into market-ready solutions, far less attention has been given to undergraduate AI research and its potential role in building national competitiveness. This chapter highlights undergraduate AI research as a foundational element in strengthening economic capacity over time. By engaging undergraduate students in authentic research experiences, universities can equip them with practical AI skills, enhance their ability to contribute to innovation, and enable them to address real-world challenges across multiple sectors. In this way, undergraduate research serves as an early pathway for developing a more innovation-ready and capable talent base. The chapter presents a conceptual framework that connects undergraduate AI research to economic competitiveness through four dimensions: advanced skill development, creative problem-solving, entrepreneurial growth, and productivity improvement across sectors. It also examines the roles of students, faculty, university leadership, and government in embedding undergraduate AI research within higher education systems, with contextual examples from Kuwait and Jordan. Finally, it proposes measurable indicators and policy recommendations to support the structured integration of AI research across disciplines, positioning undergraduate research as a strategic lever for strengthening competitiveness in an AI-driven global economy.