- The report identifies compute, data, and people as the three fundamental building blocks of generative AI leadership and organizes its policy recommendations around strengthening each area.
- It argues that generative AI could increase productivity, economic output, scientific research capacity, and federal government performance, while emphasizing that projections remain uncertain.
- The memo says the United States currently has advantages in AI chips and cloud computing, but Taiwan-centered chip manufacturing and limited academic compute access create vulnerabilities.
- The report recommends creating the National Artificial Intelligence Research Resource and funding it at $2.6 billion over six years to broaden access to compute for academic researchers.
- It calls for know-your-customer requirements for U.S. cloud providers and diplomatic outreach to encourage allied and partner screening practices for cloud access to advanced chips.
Building the Generative Economy is a special edition report framed as a memorandum to the President and Congress on the economic implications of generative AI. It begins with a primer defining GenAI, describing its rapid adoption through chatbots and APIs, and noting limitations such as incorrect outputs and emerging risks. The memo argues that the United States currently leads in GenAI but cannot assume continued advantage, especially given China’s strategic approach to technology competition. It presents GenAI as a potential general purpose technology that could raise productivity, economic output, scientific discovery, and government performance, while acknowledging uncertainty about labor-market effects. The report organizes its policy agenda around three building blocks of AI leadership: compute, data, and people. It recommends creating the National Artificial Intelligence Research Resource, applying know-your-customer requirements for cloud providers, advancing sustainable AI practices, incentivizing new microelectronics paradigms, developing a national digital infrastructure strategy, shaping network standards, passing comprehensive data privacy legislation, expanding digital trade with democracies, reforming high-skill immigration pathways, establishing a National Commission on Automation and the Future of Work, and developing classroom guidelines for GenAI. Its policy relevance is focused on sustaining U.S. and allied democratic competitiveness in an AI-enabled economy.
GenAI opens a range of new capabilities and applications that will shape the geopolitical balance, changing the calculus for military, diplomatic and economic power.
SCSP
- Create the National Artificial Intelligence Research Resource (NAIRR). The United States must ensure academic researchers can access large amounts of compute resources via the cloud.
- Implement a know-your-customer regime for cloud providers. The Department of Commerce should begin by implementing know-your-customer requirements for U.S. cloud providers.
- Launch a Green AI Initiative with allies and partners. Such an initiative would consult with industry experts and share best practices for minimizing the carbon footprint.
- Develop a National Strategy for Digital Infrastructure. The United States must position itself to win the competition for the next generation of advanced networks.
Published by the Special Competitive Studies Project. Co-publishers and external authors, where they exist, are credited in the byline above.