The rise of artificial intelligence is intensifying global technology competition and raising critical questions about the United States’ position as an innovation leader. Will we maintain our lead or will we be overtaken by China?
The stakes couldn’t be higher. This technology race will determine which country and which value system will shape our future. Could it be the US, which values freedom of expression, privacy and economic independence, or will it be China, a country known for its brutal censorship regime, aggressive surveillance of its own population and tight control of the economy?
AI represents a once-in-a-generation opportunity for the U.S. in this race. But some politicians in Washington, DC, are pushing for policies that could stifle this critical technology before it can fully flourish. Proposals to restrict open source models or establish strict oversight boards threaten to stifle innovation and undermine our ability to lead in this important emerging sector.
Politicians in Europe, a region once considered a staunch ally of American business and innovation, also seem keen to handcuff the American tech sector. In the last five years alone, Europe has passed 77 laws affecting digital technologies, including several that impose burdensome and rigorous regulations on our companies.
China is taking a different approach. The country has a vision to be the world leader in AI by 2030 and is investing more than $1.4 trillion to become a global technology leader. If China’s model of “digital authoritarianism” succeeds, it could gain traction around the world and challenge democratic values and freedoms.
The outcome of this competition will be decided over the next decade, and so the policy decisions we make now are critical. We must choose whether to strengthen America’s innovation edge by supporting our technology industry or to impose harsh regulations that could stifle growth. This is a defining moment, and we must get it right.
To provide guidance to policymakers, the American Edge Project has just published a strategy paper Unleashing American Innovation: A Policy Roadmap to Winning the Global Technology Racein which three central political pillars are outlined.
First, we must achieve geopolitical leadership through technological leadership. This requires investing heavily in research and development, reversing the U.S. Trade Representative’s retreat from innovation-friendly trade policies, and promoting the free flow of information to counter China’s data restrictions and intellectual property theft.
Second, we need to foster a vibrant innovation ecosystem. With generative AI set to add $4.4 trillion annually to the global economy, startups and small businesses are critical drivers of that value. We need to avoid stifling their growth with stringent regulations or hampering investment flows with overly strict merger and acquisition policies.
Instead, policymakers should focus on expanding innovation hubs beyond traditional technology centers, as demonstrated by the recent boom in startups in states such as Colorado, Florida and Texas.
In addition, the U.S. government must, above all, strengthen the country’s energy infrastructure to meet increased energy needs for technological advances and to defend against cyber threats, especially from China.
Finally, we need to spread the benefits of the innovation economy more broadly. America cannot maintain its leadership in innovation if the benefits of technology accrue only to elites or certain geographic areas. To ensure that these benefits are spread throughout American society, we should focus on closing the digital divide, protecting people’s ability to use low-cost products, using technology to support traditional industries, and building a robust talent pool.
The rise of AI represents both an extraordinary opportunity and a tremendous challenge in the global technology race between the United States and China. By pursuing a policy roadmap based on our values, America can secure its position as a global innovation leader and usher in a new era of prosperity, growth and geopolitical dominance.
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Kent Conrad represented North Dakota in the Senate as a Democrat from 1986 to 2013. Saxby Chambliss represented Georgia in the Senate as a Republican from 2003 to 2015. Both serve as consultants to the American Edge Project.
