Brad Smith, President of Microsoft, outlines a strategy to boost the US’s AI position, focusing on infrastructure, upskilling & global expansion.
As nations worldwide battle for AI supremacy, the US is seeking to maintain its technological edge whilst facing mounting pressure from competitors, particularly China.
Forecasting what’s to come, Microsoft, one of America’s most influential technology companies, has collaborated on a vision for the nation’s AI future.
This blueprint arrives amidst growing international debates about AI regulation, concerns over technological sovereignty and intensifying competition for AI talent and resources.
For instance, the EU has already established its regulatory framework with the AI Act, whilst China continues to advance its state-driven AI initiatives through its 14th Five-Year Plan, which emphasises technological self-sufficiency.
In this global context, Microsoft’s plan addresses three crucial pillars: technological infrastructure development, workforce preparation and international market presence.
The vision, as detailed below by Brad Smith, Vice Chair and President of Microsoft, offers a roadmap for how the US might leverage its existing advantages in private sector innovation, educational institutions and technological expertise to maintain its position at the front of the global AI revolution.
AI: the new electricity powering economic growth
In the blog post, Brad highlights the importance of technological evolution throughout history and AI’s part to play.
He draws parallels between AI and previous technological revolutions and concludes AI as a “General-Purpose Technology” (GPT), as it has the potential to drive innovation and productivity across various sectors.
He notes: “In contrast to single-purpose products, GPTs boost innovation and productivity across the economy.
“Ironworking, electricity, machine tooling, computer chips and software all rank among history’s most impactful GPTs.”
In comparing single-purpose products to GPT’s, Brad also compares AI to historical GPTs such as ironworking, electricity and computer chips, which have significantly impacted economic growth.
As a result, he thinks that with the power of AI, the US has an opportunity to leverage AI as it did with electricity during the second industrial revolution, potentially cementing its position as a global economic leader for the next quarter-century.
Brad argues that AI could be as revolutionary as the steam engine, which ignited the first industrial revolution, or electricity, which powered the second.
He believes that AI has the potential to create the next billion AI-enabled jobs, reaching not just services but manufacturing, transportation, agriculture, government and every other part of the economy.
Building the foundation: advancing US AI capabilities
The first part of Microsoft’s vision focuses on developing world-leading AI technology and infrastructure in the US, particularly in the private sector.
“America’s technological strength has always been rooted in the private sector. Today, the US leads the global AI race thanks to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises.
“At Microsoft, we’ve seen this first hand through our partnership with OpenAI, from rising firms such as Anthropic and xAI and our own AI-enabled software platforms and applications”, Brad says.
Off the back of this vision, Microsoft plans to invest US$80bn in AI-enabled datacentres globally in fiscal year 2025, with more than half of this investment allocated to the US.
However, Brad also emphasises the need for a competitive technology ecosystem and continued support for basic research through institutions like the National Science Foundation.
He calls for increased funding for basic research at the National Science Foundation and through universities, building on the work from President Trump’s first term, which included an executive order in 2019 designed to strengthen America’s lead in AI.
Empowering the workforce: AI skills development
The second aspect of Microsoft’s vision addresses the need for widespread AI skills development.
Brad argues that, like previous technological revolutions, the successful integration of AI into the economy will depend on equipping workers with the necessary skills.
To address this issue, Microsoft aims to train 2.5 million American students, workers and community members in AI skills in 2025 alone.
The company is also partnering with community colleges, workforce agencies and organisations like 4-H and Future Farmers of America to reach diverse communities across the country.
Brad additionally proposes a national AI talent strategy that would make AI skilling accessible and useful for every American.
KEY FACTS:
- Microsoft plans to invest $80bn in AI-enabled datacentres globally with over half in the US
- The company aims to train 2.5 million Americans in AI skills during 2025
- Microsoft emphasises building trustworthy AI that prioritises cybersecurity, privacy and digital safety
This strategy includes partnerships with community colleges, workforce agencies and rural communities.
For instance, Microsoft is working with the National AI Consortium for Community Colleges to provide industry-aligned AI curriculum and developing faculty training through AI Bootcamps.
Expanding horizons: promoting US AI exports
The final component of Microsoft’s strategy focuses on promoting American AI exports and Gen AI.
Brad warns of the potential for international competition, particularly from China, in spreading AI technologies globally.
“President Trump’s 2019 executive order rightly emphasized the need to promote an international environment that “opens markets for American AI industries while protecting our technological advantage in AI and protecting our critical AI technologies from acquisition by strategic competitors and adversarial nations.”
Since then, the advent of Gen AI has increased the importance of this priority.
“Even more critically, the rapid development of China’s AI sector has heightened competition between American and Chinese AI, with much of this likely to play out during the next four years in international markets around the world”, Brad points out.
Brad believes the US needs to quickly promote its AI technology globally.
This is based on lessons from the telecom industry, where Chinese companies like Huawei outpaced Western firms in developing countries through government support and innovation which led to security concerns for the US government regarding Chinese 5G technology.
He argues for a proactive approach to support American AI adoption worldwide and suggests that the race between the US and China for international influence in AI could be determined by which country moves fastest.
He also highlights the need for a smart international strategy to rapidly support American AI around the world, noting that China is already starting to offer developing countries subsidised access to scarce chips and promising to build local AI datacentres.
Charting a course for AI-driven prosperity
A running theme throughout Brad’s vision for America’s AI future is the need for collaboration between government, private sector and educational institutions.
“Our strong educational system can spread new AI skills to work that will energise our economy”, Brad says.
“Technology platforms and non-profits can help people use AI to enhance their careers. We have the world’s most dynamic business sector that excels in adopting new technology.
“If the Trump Administration can develop a strong national AI talent strategy and use AI to make the government itself more effective and efficient, it will put the country on a promising path.”
Brad finally stresses the importance of making AI skills accessible to all Americans, regardless of their background or location.
“The key to the future is to bring together the best of what we can offer across American society, from across our private sector, educational and non-profit institutions and government.
“Teamwork based on technology collaboration will build the foundation for a golden AI opportunity — and for the next generation of American prosperity.”
