Something remarkable is happening in Washington. Tech executives who once avoided the political spotlight now make regular pilgrimages to Capitol Hill and artificial intelligence — a field that dates back to the 1950s – has become the talk of the town.
The reason? AI is no longer a niche field pursued by academics and scientists in Silicon Valley. It is reshaping our economy, redefining global power dynamics, and consuming an ever-increasing share of our energy grid.
Although no politician has ever won or lost an election on AI policy alone, the new administration’s decisions will reverberate across decades of the U.S. economy and global competition.
Take the energy problem. As President-elect Donald Trump said in his August 2024 speech interview with Elon Musk, “You will need a huge amount of electricity, almost double what we currently produce for the entire country.”
AI’s appetite for electricity is staggering – it’s already gobbling up 2% of America’s electricity supply, and that thirst could triple before the end of the decade. Trump’s solution is bold: open the doors to energy production by lifting the ban on offshore drilling and giving the green light to major energy projects. His plan would reverse President Joe Biden’s policies and unlock an estimate 625 million acres of offshore reserves worth 50 to 60 trillion dollars. Public services are already responding by keeping coal plants open longer and double natural gas to meet demand.
The Biden administration has presented AI as a solution to America’s energy problem. Will Trump’s policies push AI to the side of problems? It’s a conundrum that the new administration cannot afford to ignore, especially as AI creates an ironic twist: helping us optimize our energy use while requiring more energy than ever before. Tech companies already are give up their environmental goals, caught between growing AI-related demand and pressure to keep the lights on.
The energy challenge is just one part of a larger chess game. For years, Washington has worked to keep advanced technologies out of Beijing’s hands. export controls on crucial components like semiconductors. The next administration appears poised to further tighten these restrictions, targeting loopholes that allow Chinese companies to exploit U.S. cloud services for AI development. This could prove particularly complex given figures like Elon Musk, who straddle both worlds with significant commercial interests in China.
Yet the global AI landscape is not as simple as the US-China standoff. When Dubai’s Hussain Sajwani stood with Trump and promised 20 billion dollars building data centers on American soil raised thorny questions about foreign investment in critical infrastructure. Who really controls these AI capabilities if foreign capital lays the foundation? For an administration focused on American domination, these are not academic questions.
Domestically, pressure for deregulation could boost AI innovation. Cutting approval red tape and supporting startups could spark fierce competition and faster breakthroughs. But there is a catch. The common criticism of Trump and Musk “Awakened AI” signals a shift toward a focus on risks and national security. However, this “anti-woke” stance could also become a constraint in itself, limiting AI’s potential and progress.
Smart partnerships remain essential. Take Canada, with its riches hydroelectricity and growing nuclear capacity. Our northern neighbor already supplies more than 50 TWh of electricity to the United States, achieving a record figure $5.8 billion in 2022. They are also investing heavily in small modular reactors this could help sustainably fuel America’s AI ambitions. But recent political tensions – notably provocative proposals Canadian state and discussions about expanding U.S. territory into areas like Greenland and the Panama Canal – threaten this vital relationship.
Each path forward involves difficult trade-offs. Increasing energy production could accelerate the development of AI, but at what environmental cost? Tighter export controls could slow China’s progress, but could break down global cooperation on AI governance. Deregulation could accelerate innovation but would leave dangerous blind spots. Although international partnerships offer diplomatic finesse, they are increasingly – rightly – met with cynicism and skepticism about the results of global cooperation.
The new administration’s approach to AI will reveal more than its policy preferences: It will show whether America can still approach global challenges with wisdom and foresight. Will we find the right balance between growth and sustainability, innovation and responsibility, competition and collaboration? Or will we seek quick wins at the expense of long-term stability?
AI transcends current politics. Larry Summers recently noted that in a few years, “Russia, Ukraine, Donald Trump and Xi Jinping will be side stories,” with AI potentially becoming “the most important technology ever invented.” As Washington prepares for this transition, the stakes could not be higher. AI is not just another political issue; it is a force that will define our times. As Matt Pottinger and Mike Gallagher have pointed out, there is “nothing replaces victory” in this global race. But true leadership is about more than winning the AI race: it involves doing so in a way that reflects our most cherished values.
