The following piece is part of the U.S.-India AI Fellowship Program’s short-form series.
By: Divyansh Kaushik
In a significant policy declaration at this week’s AI Action Summit in Paris, U.S. vice president J.D. Vance outlined an assertive vision for American AI leadership that emphasized deregulation, economic growth, and strategic competition. The administration's approach marks a notable departure from the cautionary AI governance frameworks gaining traction internationally, particularly in Europe. It represents a fundamental reframing of how the United States views its role in the AI revolution, with profound implications for international cooperation, economic competition, and strategic stability.
At its core, the administration's vision reflects a distinctly American approach to technological development: optimistic, market-driven, and unapologetically focused on maintaining strategic advantage. By positioning AI as a catalyst for economic renewal rather than a threat to labor markets, the administration is attempting to craft a narrative that aligns technological innovation with broader populist economic messaging.
The strategy's emphasis on domestic semiconductor manufacturing and "full stack" AI development reveals an acute awareness of the technology's strategic dimensions. By linking AI capability to national security and economic sovereignty, the Trump Administration is effectively declaring technological independence — a move that echoes earlier periods of American industrial policy, albeit with 21st-century characteristics.
Perhaps most intriguing is the administration's bet on AI as a force for worker empowerment rather than displacement. This optimistic assessment challenges prevailing narratives about automation and job loss, but it will require concrete policy measures to ensure that technological gains translate into broadly shared prosperity.
The strategy's national security implications are equally significant. By emphasizing export controls and supply chain security, the administration is signaling a more muscular approach to technological competition with China. This stance aligns with broader efforts to restrict advanced technology transfers, but it may accelerate global technological decoupling — a process with uncertain long-term consequences for innovation and economic growth.
The integration of export controls within this broader strategic framework represents a rare continuation in American technology policy from the Biden administration. Rather than treating controls as mere restrictions, the administration positions them as essential tools for maintaining technological advantage while preventing adversarial exploitation of American innovations. This approach aligns with historical precedents in other critical technologies while acknowledging AI's unique characteristics as a dual-use technology with unprecedented transformative potential.
However, this bold vision faces significant challenges, particularly in the international arena.
The administration's skepticism toward large technology firms' calls for regulation also merits careful consideration. While the desire to prevent regulatory capture is laudable, the distinction between "Little Tech" and established players could create unnecessary market distortions. Effective AI governance requires balancing innovation with responsibility, regardless of firm size.
Looking ahead, the success of this strategy will depend on several factors. First, the administration must demonstrate that its deregulatory approach can foster responsible innovation without compromising safety or security considerations. Second, it must find ways to maintain international technological cooperation while pursuing its competitive agenda. Finally, it must ensure that its optimistic vision of AI-driven economic growth translates into tangible benefits for American workers and communities. While the emphasis on innovation and competition aligns with historical American strengths, the success of this approach will depend on careful execution and the ability to maintain technological advantage while fostering responsible development. As the global AI race accelerates, the stakes of this strategic gambit become increasingly clear. The administration's vision for American AI leadership could either catalyze a new era of technological innovation and economic growth or exacerbate international tensions and regulatory fragmentation. As we enter this critical phase of the AI revolution, the world will be watching to see whether America's bold approach to AI governance can strike this delicate balance.
Divyansh Kaushik is part of the U.S.-India AI Fellowship Program at ORF America. He is currently the Vice President of Beacon Global Strategies.