Technology has always been a driving force in global leadership. Historically, Britain's dominance stemmed from advancements in coal and steam, while America's century of power was built on electrification, materials science, and mass production. Now, artificial intelligence (AI) presents a new frontier for global leadership, offering the potential to revolutionize both the economy and national security. The United States has a chance to lead in this new AI-driven era, but faces stiff competition, particularly from China.

China's substantial investments in AI, including billions poured into data centers and integration of AI across its economy, pose a significant challenge to American dominance. Recent expert analysis indicates a shift in technological leadership, with China now leading in a majority of key technologies, a dramatic reversal from the early 2000s. China's expanding influence in sectors like solar panels and electric cars, coupled with a significantly larger output of computer science graduates, positions it to become a major innovation superpower by 2030.

Despite these challenges, the U.S. retains a narrow lead in AI, presenting a significant opportunity for economic growth. McKinsey estimates AI could contribute trillions annually to the global economy. To capitalize on this potential, the U.S. needs a pro-innovation AI agenda that fosters scientific advancement and translates breakthroughs in AI and quantum computing into practical applications.

Fortunately, the American private sector is heavily investing in AI research and development. However, effective government policies are crucial to support this private sector innovation. These policies should focus on areas like algorithm development, computational resources (chips, data centers, and energy), digital infrastructure, and undersea cables.

A successful AI agenda requires a three-pronged approach: alignment, balance, and competitiveness.

Alignment

A unified approach to AI regulation is essential to avoid a fragmented legal landscape that could hinder innovation. Over-regulation can stifle technological progress, as evidenced by the situation in Europe. The U.S. should learn from its past successes in fostering internet growth by streamlining regulations and empowering the private sector.

Balance

While acknowledging the risks associated with AI, it's vital to focus on its immense potential. The U.S. must not only invest in AI research but also actively deploy these technologies. Streamlined government procurement can encourage broader adoption of AI across various sectors, including cybersecurity.

Competitiveness

Maintaining competitiveness requires protecting American data and intellectual property while encouraging investment in cutting-edge AI technologies. The U.S. must avoid policies that could inadvertently benefit foreign actors or discourage domestic innovation.

The U.S. has a unique opportunity to reclaim its position as a global innovation leader. By embracing a strategic approach that prioritizes alignment, balance, and competitiveness, the nation can unlock the transformative potential of AI and secure its future in the technology-driven world.