The rise of artificial intelligence is intensifying the global tech competition, raising critical questions about the United States’s position as a leader in innovation. Will we maintain our lead, or will China overtake us?

The stakes could not be higher. This tech race will determine which country and which set of values will build our future. Could it be the U.S., which values expression, privacy, and economic empowerment, or will it be China, a country known for its brutal censorship regime, aggressive surveillance of its own population, and stringent control of the economy? 

AI presents a once-in-a-generation opportunity for the U.S. in this race. However, some policymakers in Washington, D.C., are pushing measures that could stifle this crucial technology before it can fully develop. Proposals to restrict open-source models or establish stringent oversight bodies threaten to hinder innovation and undercut our ability to lead in this critical emerging sector. 

Policymakers in Europe, a region that once stood as a stalwart ally of U.S. companies and innovation, also appear keen on handcuffing America’s technology sector. In just the past five years, Europe has passed 77 pieces of legislation impacting digital technologies, including several that single out our companies for onerous and heavy-handed regulations. 

China has taken a different approach. It has outlined a vision to lead the world in AI by 2030 and is investing more than $1.4 trillion to become the global tech leader. If successful, China’s model of “digital authoritarianism” could gain global traction, challenging democratic values and freedoms.

The outcome of this competition will be decided in the next decade, making current policy decisions critical. We must choose whether to bolster America’s innovation edge by supporting our tech industry or to impose heavy regulations that could stifle growth. This is a pivotal moment, and we must get it right.

To help guide policymakers, the American Edge Project just published a policy paper, Unleashing American Innovation: A Policy Roadmap to Win the Global Tech Race, outlining three key policy pillars.

First, we must establish geopolitical leadership through technological leadership. This involves investing heavily in research and development, reversing the U.S. trade representative’s retreat from pro-innovation trade policies, and championing the free flow of information to counter China’s data restrictions and intellectual property theft.

Second, we need to foster a dynamic innovation ecosystem. With generative AI poised to add $4.4 trillion annually to the global economy, startups and small businesses are crucial drivers of this value. We must avoid stifling their growth with heavy-handed regulations or impeding investment flows through overly strict merger and acquisition guidelines. 

Rather, policymakers should focus on expanding innovation hubs beyond traditional tech centers, as evidenced by the recent flourishing of startups in states such as Colorado, Florida, and Texas. 

Critically, the U.S. government must also strengthen the nation’s energy infrastructure to meet expanded power needs for technological advancements and to defend against cyber threats, particularly from China.

Finally, we must share the benefits of the innovation economy more broadly. America cannot maintain a leadership position in innovation if the benefits of technology accrue only to the elites or certain geographic areas. To ensure these benefits are distributed 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 pipeline. 

The rise of AI presents both an extraordinary opportunity and a formidable challenge in the global tech race between the U.S. and China. By following a policy road map rooted in our values, America can secure its position as a global innovation leader and usher in a new era of prosperity, growth, and geopolitical preeminence.

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Kent Conrad represented North Dakota in the Senate from 1986 to 2013 as a Democrat. Saxby Chambliss represented Georgia in the Senate from 2003 to 2015 as a Republican. They both serve as advisers to the American Edge Project.