China, U.S. in artificial intelligence race shaping the economy & security - KEYE

China, U.S. in artificial intelligence race shaping the economy & security

WASHINGTON (TNND) — As artificial intelligence rapidly transforms the global economy, competition between the United States and China is becoming increasingly focused on which nation will lead the next generation of technological innovation.

Patrick Hedger, policy director at NetChoice, said the race over artificial intelligence extends far beyond chatbots and consumer technology, arguing it will influence economic growth, national security and global competitiveness for decades to come.

"We just have to look back to the internet revolution for what could potentially happen with the AI revolution," Hedger told The National News Desk.

Hedger said the United States benefited significantly from policies that helped fuel the internet economy, allowing American technology companies to become global leaders. He argued a similar opportunity exists with AI, but warned China is investing aggressively to become the dominant player.

"The same thing could happen with AI, and it could be much more exponential than that," Hedger said. "Is that type of economic growth and economic power ... going to come to the United States, or is that going to go to China? That's really the question that we're facing."

Data centers become key part of AI competition

Hedger said expanding data center infrastructure will be critical if the United States hopes to remain competitive.

He pointed to efforts by the Trump administration to encourage private investment in AI infrastructure and reduce regulatory barriers while arguing some state-level policies could slow development.

Hedger specifically criticized proposals that would limit new data center construction, saying misconceptions about their impact have fueled opposition.

"We know that the literature is telling us data centers actually reduce electricity costs," he said, adding that data centers support many of the digital services Americans use every day.

Claims of foreign influence in online debate

Hedger also argued that some online criticism of data centers has been amplified by foreign actors seeking to undermine U.S. technological development.

He cited findings by OpenAI that identified accounts linked to Chinese internet addresses using ChatGPT to generate anti-data center content that later appeared on American social media platforms.

Hedger compared those efforts to previous foreign influence campaigns targeting U.S. industries such as hydraulic fracturing and fifth-generation wireless technology, or 5G.

OpenAI has previously reported disrupting influence operations originating from multiple countries, including China, that used AI-generated content in online campaigns.

AI expected to reshape jobs—not eliminate them

While concerns remain about artificial intelligence replacing workers, Hedger said history suggests technological advancements tend to create new industries and employment opportunities even as they automate some existing tasks.

"The whole point of technology is it does disrupt, and there will be some jobs that are outmoded," Hedger said. "But overall, technological revolutions create new types of jobs and more jobs."

He pointed to the medical field as one example, saying AI has improved the ability to analyze X-rays while demand for radiologists continues to grow.

Economists and labor experts have similarly said AI is expected to automate some tasks while increasing demand for workers with skills that complement emerging technologies, though many also caution the transition could significantly reshape parts of the workforce over time.

As governments and businesses continue investing billions in artificial intelligence, policymakers face ongoing debates over regulation, infrastructure development and how best to prepare workers for an increasingly AI-driven economy.