US vs. China in AI: 5 Policy Reforms Top Executives Urge to Stay Ahead in 2025

From AI R&D funding to workforce development and international alliances, here are five critical areas where policy changes are essential to securing the US’s AI leadership in 2025.

Introduction

In the race for AI policy, U.S. tech giants are urging Congress to rethink its policies. With China making rapid strides in AI, leaders from companies like OpenAI, Microsoft, and AMD are asking for reforms to keep the U.S. ahead. If changes are not made soon, the U.S. risks losing its leadership in the field.

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5 Key Policy Reforms to Keep the US Competitive in AI

  • Increase federal funding for AI research to close the gap with China’s investments.
  • Develop a skilled AI workforce through targeted education and immigration reforms.
  • Implement balanced data privacy regulations that protect user data without stifling innovation.
  • Invest in AI infrastructure, including 5G networks and supercomputing capabilities.
  • Strengthen global AI alliances to counter China’s growing influence in international AI standards.

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Background: The Growing US-China AI Competition

China is heavily investing in AI. In 2023, China’s AI investments reached $50 billion. The U.S. spent $56 billion in the same year. However, China’s AI progress is significant. Companies like DeepSeek have developed cost-effective, high-quality AI models, challenging U.S. dominance.

MetricUnited StatesChina
Annual AI Investment (2023)$56 billion$50 billion
Leading AI CompaniesOpenAI, Microsoft, Google, AMDBaidu, Tencent, DeepSeek
AI Chips DevelopedNVIDIA, IntelHuawei, SMIC
AI Research Papers (2023)2,5002,100
AI Patent Applications1,000+1,200+

China’s companies are making rapid progress. This is forcing U.S. tech leaders to call for change.

Top 5 Policy Reforms U.S. Executives Want

As the global economic landscape grows increasingly complex, U.S. business leaders are calling for AI policy changes to maintain a competitive edge.

From digital infrastructure to sustainable practices, executives are pressing for reforms that can drive growth, foster innovation, and protect American industries.

Here are the top five policy priorities they believe are crucial to staying ahead:

Streamlining AI Regulations

Executives argue that current regulations limit innovation. They believe that Europe’s strict AI rules could push talent to China. Senator Ted Cruz agrees, saying that the U.S. should focus on innovation rather than regulation.

Targeted Export Controls

The U.S. needs smart export controls. These would protect national security while allowing U.S. companies to access international markets. Microsoft’s Brad Smith is advocating for such targeted controls instead of broad bans that could harm U.S. businesses.

Supporting the Full AI Ecosystem

AI requires investments in more than just software. It needs hardware, infrastructure, and skilled workers. U.S. leaders believe that comprehensive support is key to maintaining global competitiveness. This means investing in AI chips, datasets, and computing power.

Investing in Energy and Talent

AI models require a lot of computational power. The U.S. must address energy bottlenecks to stay competitive. There is also a need to invest in education and training to develop the AI workforce of tomorrow.

Promoting Global Collaboration

U.S. tech leaders urge collaboration with international allies. Working with countries like Japan and South Korea can help strengthen the U.S. position in AI. It’s essential to work together on research and ethical standards.

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Why This Debate Matters

AI is changing everything. The global AI market was valued at $136 billion in 2023. It is expected to grow to $1.81 trillion by 2030. The country leading in AI will have an advantage in many industries, from healthcare to defense.

China is advancing fast. DeepSeek’s AI models are already competitive with those from U.S. companies. If the U.S. doesn’t act quickly, it could fall behind China. That would have major implications for both technology and national security.

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Conclusion: A Critical Moment for U.S. AI Leadership

The U.S. tech industry’s calls for AI policy reform are urgent. The U.S. needs to reduce regulatory burdens, implement smart export controls, and invest in talent and energy.

These steps are crucial to staying ahead in the global AI race. If Congress doesn’t act soon, the U.S. risks losing its lead to China. The future of AI—and global leadership—depends on it.

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Kumar Priyadarshi
Kumar Priyadarshi

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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