The AI Competition Center: A Policy Framework for Powering America’s AI Future

Co-authored by Chip Pickering, CEO, INCOMPAS and Colin Crowell, AICC Advisory Council Member & Managing Director, The Blue Owl Group

America stands at a pivotal moment in the global artificial intelligence (AI) race. As AI reshapes our economy, security, and society, the United States must act decisively to maintain its competitive edge, ensure that the technology serves all Americans, and protect our position as a leader in global AI governance.

Since its founding, INCOMPAS has been at the forefront of promoting open networks, open markets, and competition in telecommunications and technology. Today, as the INCOMPAS AI Competition Center (AICC) releases its comprehensive framework for U.S. artificial intelligence policy, we draw on that legacy while addressing the unique challenges of the AI era.

History as a Compass

The 1990s offer crucial lessons for today’s AI policy challenges. During that transformative decade, lawmakers didn’t create a single “Internet Act.” Instead, they crafted a series of targeted policies — the Cable Act of 1992, the spectrum auction provisions of 1993, the Telecommunications Act of 1996 with its vital Section 230, the Digital Millennium Copyright Act, and Children’s Online Privacy Protection Rule. Each addressed specific challenges while maintaining a consistent focus on competition and innovation.

This approach — bipartisan, methodical, and adaptable — helped create the modern digital economy. Today’s AI landscape demands similar wisdom: not rushing to comprehensive regulation, but thoughtfully addressing specific challenges while maintaining our commitment to open markets and innovation.

The World is Watching

The numbers are stark: U.S. private AI investment reached $67 billion in 2023 — nine times that of China. American entities developed 61 major AI models last year, compared to 21 from the EU and 15 from China. Yet this lead isn’t assured. China’s “Next Generation AI Development Plan” aims for global AI leadership by 2030, backed by centralized planning and vast data resources. Meanwhile, they’re projected to graduate almost double the number of U.S. STEM students by 2025.

To maintain our advantage, we must act now to remove competitive barriers, protect American interests, and ensure AI development reflects our democratic values. History, once again, will judge us on how we choose to proceed. Our four critical pillars form the foundations of what we believe are a comprehensive national framework to harness the potential of this transformational technology:

1. Economic Leadership & Innovation

• Promote application agnostic and wide-ranging market competition — from cutting edge open source models to more established proprietary and closed products. America should unleash the strength of entrepreneurial and vibrant competition of all approaches.
• Pursue a more active role to develop US-based AI through availability of public datasets, computational power, and procurement reform.
• Launch “AI Education for All” as a cornerstone initiative to prepare the future workforce and support comprehensive retraining programs.
• Establish regional tech hubs beyond traditional centers to drive nationwide innovation.

2. Infrastructure Modernization

• Drive a comprehensive “all-of-the-above” energy strategy that pairs robust fiber networks with abundant data center capacity.
• Accelerate permitting processes for next-generation power infrastructure, transmission systems, and digital infrastructure.
• Leverage AI for improved spectrum management and allocation.

3. National Security

• Lead the global AI race by harnessing America’s innate strengths in openness, innovation, and entrepreneurial talent.
• Strengthen partnerships with democratic allies while leading the development of AI applications for national defense.
• Establish clear protocols for AI use in national security applications while protecting civil liberties.
• Develop comprehensive cybersecurity frameworks to protect our economy, businesses, and individuals.

4. Legal Framework & Consumer Protection

• Enact federal privacy legislation to provide consistent consumer protections.
• Define clear liability frameworks that appropriately assign responsibility across the AI value chain.
• Mitigate bias and protect civil rights.

Just as the policy frameworks of the 1990s enabled the Internet revolution while protecting consumer interests, we now have the opportunity to shape AI’s development in alignment with democratic values and American entrepreneurial culture — particularly our open markets, productivity, and intensive competition. The infrastructure investments needed for AI can accelerate our clean energy transition and digital infrastructure deployment. The workforce development required can revitalize education and create new opportunities across the country. The security standards we establish can shape global norms and push us ahead of global competitors.

Our framework, like those that shaped the Internet age, recognizes that policy development must be iterative and responsive — necessarily in “beta” as technology evolves. We encourage all participants with an interest in this debate — from civil society and academia, to industry and policy leaders — to provide structured input on our first phase here. This is a participatory process and we are keen for your feedback. We stand ready to collaborate closely with our nation’s lawmakers and public servants as this critical process evolves. Please find the full report here.

The AI Competition Center, established by INCOMPAS, promotes a competitive, trusted, and innovative AI ecosystem for the benefit of all Americans. Join us.