President for a Day

The solutions proposed ranged from limiting AI data center construction to incentivizing carbon-neutral operations. Notably, Hart referenced global approaches: Ireland and the Netherlands have taken the drastic step of halting new data center construction due to insufficient infrastructure, while Singapore requires builders to apply for energy awards before construction begins. Meanwhile, China’s “East-West” policy, which strategically places AI factories in rural areas away from population centers, was highlighted as a way to manage the strain on urban power grids while embracing renewable energy sources.

For the next U.S. president, crafting a balanced energy policy that supports technological growth while maintaining sustainability will be critical.

Research & Development: Stimulating U.S. Innovation

The second policy area addressed was research and development (R&D), an essential component of maintaining a competitive edge in technology. Hart emphasized that R&D investment growth in the U.S. is at its lowest rate since 2012, with private sector investment increasing by only 8% year-over-year. Other countries, such as Korea and Israel, invest significantly higher percentages of their GDP into R&D, outpacing U.S. efforts in both scope and ambition.

To stimulate innovation, Hart proposed several policy options for participants to consider, including federal grants for specific industries, tax incentives on patent revenue (known as a “patent box”), and the reinstatement of a 100% tax deduction for R&D spending in its first year. The latter, which previously existed in U.S. tax policy until 2021, has bipartisan support and could help bolster domestic innovation.

Countries like China and Lithuania are already offering “super deductions” on R&D expenditures, giving their businesses a significant advantage. For the U.S. to remain a leader in innovation, the next president must consider how to incentivize R&D effectively through tax policy or government-backed funding initiatives.

Talent Development: Closing the Skills Gap

A third major challenge discussed during the webinar was the shortage of high-skilled workers. By 2030, it is estimated that the global economy will face a shortfall of 85 million high-skilled workers, including 1.4 million in the U.S. alone. To maintain competitiveness, the U.S. must find ways to address this talent gap, especially as other nations like China, Russia, and Japan are also vying for the same pool of skilled workers.

Hart outlined several potential policies to solve this issue, including increasing the retirement age, expanding the work week, and offering green cards to foreign students who graduate from U.S. universities. Additionally, non-degree pathways to high-skilled employment were suggested as a way to address the talent shortfall more quickly. Germany’s successful policy of retaining nearly 50% of its foreign graduates was cited as an example of how the U.S. might better retain the talent it trains.

Given that workforce development is a long-term process, the next U.S. president will need to implement policies that not only attract but also retain high-skilled workers in a highly competitive global market.

Advancing AI Development and Use

Artificial intelligence is poised to transform economies, industries, and societies worldwide. However, the U.S. currently lags in a cohesive AI strategy, and without decisive action, it risks falling behind global competitors. In this section of the webinar, Hart outlined several potential policies aimed at making the U.S. a leader in AI development by addressing the underlying challenge: how to engage the broader population with AI while fostering innovation.

One proposed solution involved creating a state-backed $100 billion technology investment fund dedicated solely to AI development. This fund would drive innovation by providing significant financial support to AI startups and research initiatives. Another option was to prioritize AI in the public sector, introducing AI tools into government operations to drive efficiency and public sector innovation. This approach, modeled after Singapore’s AI strategy, would demonstrate AI’s benefits to the public, increasing acceptance and adoption.

Alternatively, the U.S. could adopt a private-sector-led strategy, focusing on doubling the per capita income by boosting productivity through AI. This would allow businesses to rapidly integrate AI technologies, driving economic growth and propelling the U.S. into a leadership position.

Perhaps the most controversial option was to relax regulations and create a “regulation-light” environment to lure AI investment away from countries with more stringent controls. By becoming the most AI-friendly country in terms of regulatory oversight, the U.S. could attract international AI companies and innovators to operate within its borders.

Ultimately, the choice of AI strategy will determine whether the U.S. can retain its status as a technological superpower. A combination of public sector prioritization and private sector incentives may be the most balanced path forward, ensuring that AI development benefits the entire economy while addressing public concerns.

Protecting Citizens from Harmful AI, While Leading by 2030

While AI offers immense potential, it also brings risks that must be carefully managed. During the webinar, Hart emphasized that the next administration must not only foster AI innovation but also implement effective safeguards to protect citizens from its unintended consequences. This challenge involves finding the right balance between leadership in AI and robust governance.

Several policy options were presented. One approach involved creating a new national-level AI and advanced technology council to oversee the development and implementation of AI. This council would provide guidance and regulatory oversight, ensuring that AI systems are developed responsibly and that their potential harms are minimized. This strategy aligns with the approach adopted by the United Arab Emirates, which has established a formal AI leadership structure to manage risks.

Another policy option focused on enhancing legal protections by prosecuting companies and individuals who misuse AI. By holding organizations accountable for failing to mitigate AI-related risks, the U.S. government could create strong incentives for ethical AI development. This model follows recent steps by the Department of Justice, which has committed to prosecuting companies that allow AI systems to be used in harmful ways.

A more restrictive approach would involve creating a national “negative list,” where AI companies are prohibited from certain activities unless explicitly approved by the government. While this could ensure stricter oversight, it risks stifling innovation by creating bureaucratic hurdles. A more flexible option is to induce voluntary compliance with generally accepted AI principles, encouraging companies to self-regulate while still advancing AI development.

As AI becomes increasingly integrated into society, the next U.S. president must implement policies that address both the potential risks and rewards. By balancing regulation with innovation, the U.S. can protect its citizens while maintaining its leadership position in AI by 2030.

Looking Ahead: Leadership in Technology

Hart concluded the Update by reminding participants that the U.S. faces immense challenges in the coming decade. With AI and other disruptive technologies advancing rapidly, the next president must navigate complex decisions on energy infrastructure, innovation policies, and talent acquisition. These decisions will not only shape the technological landscape of the U.S. but will also determine its standing on the global stage for generations to come.

To ensure the U.S. remains a technological leader, bold and forward-thinking policies will be required. The question is, will the next president rise to the challenge?