Details the deficits threatening America’s AI future and offers a roadmap to secure U.S. leadership
WASHINGTON, DC — The American Edge Project (AEP), a coalition of two dozen domestic organizations, today released a new report warning that, despite an early lead in artificial intelligence (AI), the United States is not positioned for long-term AI leadership, and risks falling behind China in the technology that will define global power for decades.
The report, “The $7 Trillion Battle for Global AI Supremacy: A Visual Guide to the U.S.–China AI Race,” shows how a decade of underinvestment in America’s power generation and transmission grid, combined with talent shortages and slow AI adoption, have created structural vulnerabilities that China is capitalizing on. It warns that unless lawmakers act decisively to close these gaps, China could seize long-term AI leadership.
“Losing our AI edge would threaten America’s security, prosperity, and the values of freedom and openness that anchor the world’s digital infrastructure,” said Doug Kelly, CEO of the American Edge Project. “But it’s a solvable challenge — if we invest, build, and move with the urgency of a modern-day moonshot.”
The issue brief in its entirety can be found here. Key findings include:
United States vs. China: Four Essential Drivers of AI Leadership
- Power & Transmission: AI leadership hinges on whether America can power it. Exploding demand is straining our aging grid, while China generates twice as much electricity as America does, and is adding massive new amounts of generation and transmission capacity. Without urgent upgrades, America’s AI future will be capped by energy limits.
- AI Adoption at Home and Abroad: The country that scales AI fastest will lead. China is leading in key areas of domestic adoption and exporting its tech abroad, while U.S. adoption lags. Without a surge on both fronts, China will have an upper hand.
- AI Talent & Skills: AI is a talent race. America faces severe AI-related workforce shortages, while China is producing 27 million more Science, Technology, Engineering and Math (STEM) graduates each decade than we are. If we don’t close this gap, we’ll cede both innovation and deployment speed.
- AI Infrastructure: Leadership depends on the fastest chips and robust data centers. America is leading in these areas, but power shortfalls can short-circuit our success.
Policy Recommendations to Secure U.S. A.I. Leadership
- Congress Must Codify and Fund President Trump’s AI Action Plan
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- The President’s plan addresses many challenges facing American AI leadership. Making it law creates a durable federal playbook for AI growth, prevents future administrations from reversing course, and stops state-level overreaches from sabotaging America’s success.
- Upgrade America’s power and transmission system
- Expand power generation with an all-of-the-above energy approach.
- Onshore critical supply chains for transformers and turbines to reduce wait-times.
- Modernize and secure the grid through permitting reform and expanded transmission.
- Maintain America’s chip and compute advantage
- Continue investment in semiconductor manufacturing and AI accelerators.
- Secure critical minerals.
- Prevent harmful state AI laws and misguided regulatory experiments.
- Build the world’s strongest AI talent pipeline
- Increase K-12 AI literacy and STEM programs.
- Launch a national AI workforce initiative.
- Expand high-skilled immigration.
- Accelerate AI adoption at home and abroad
- Promote AI literacy and the benefits of AI to America’s working families.
- Give allies priority access to U.S. AI chips, models, and cloud capacity.
- Offer democratic alternatives to China’s surveillance-based AI exports.
BACKGROUND:
The American Edge Project is a coalition of domestic organizations representing a cross-section of U.S. innovators who are dedicated to telling the story about technology’s positive influence on America’s economy and the vital role innovation plays in our society. Former New Mexico Governor Susana Martinez, former U.S. Representative Chris Carney, and former Federal Election Commission Chairman Bradley A. Smith are directors of the American Edge Project. AEP’s National Security Advisory Board is comprised of Former White House Counterterrorism and Homeland Security Advisor Frances Townsend; retired four-star General Joseph F. Dunford Jr., United States Marine Corps (USMC), who served as former Chairman of the Joint Chiefs of Staff; and former Acting Director of the Central Intelligence Agency (CIA), Michael J. Morell. Former U.S. Senators Saxby Chambliss (R-GA) and Kent Conrad (D-ND) serve as Co-Chairs of the Project’s Economic Advisory Board. Former U.S. Representative Greg Walden (R-OR) and Former U.S. Representative Loretta Sanchez (D-CA) serve as Co-Chairs of the Project’s Open & Accessible Internet Advisory Board.
Visit AmericanEdgeProject.org for more information.
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