AI technology has made significant advancements in writing and artistic capabilities, providing a glimpse into its potential. However, as AI continues to evolve, it brings enormous consequences for the U.S. economy, national security, and various aspects of our lives. The pace of improvement is accelerating, with the cost of training AI models decreasing rapidly and output quality becoming more accurate. Despite these advancements, AI firms still face challenges related to algorithmic bias, attribution, and copyright disputes. Moreover, there are numerous unforeseen legal, ethical, and cultural questions arising in fields such as military, medical, educational, and manufacturing uses of AI. The most concerning aspect is the potential for AI to be misused, leading to a massive loss of life if not properly regulated. Governments worldwide must take the lead in implementing regulations, but it will be challenging to anticipate and prevent all potential misuses, especially with open-source AI models available to all. The U.S. national security sector may experience slower positive changes due to bureaucratic processes and resistance to innovative approaches. The concept of “soft power” will be replaced by “innovation power” in determining future national security issues. Ethical considerations regarding AI’s use in military campaigns will become increasingly important, as AI systems could potentially autonomously decide targets and execute attacks. In the global AI technology race, China has faced challenges in catching up, particularly in obtaining sufficient Chinese language training data and access to advanced computer chips. Despite this, China remains a significant player in the AI field.