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Boards Confront the US-China AI Race
Key Points
- The escalating US-China rivalry has turned AI into a critical geopolitical, supply chain, and national security issue.
- Directors should ensure management has strict data security protocols, international regulatory compliance strategies, and backup options across vendors to prevent a single point of failure.
- Given the warp speed of AI development, boards add the most value by focusing on flexible risk-mitigation plans.
This AI-generated summary, based on content on this page, was reviewed by NACD editors for accuracy.
As the US-China AI rivalry heats up, businesses and their boards are on the front lines.
The race between the United States and China to achieve artificial intelligence dominance continues to heat up. In June, Bloomberg reported that China plans to spend about $295 billion over the next five years to construct data centers, and that it will seek to utilize domestic chip manufacturers more.
To catch up to their US rivals, Chinese AI firms have allegedly engaged in “distillation attacks” on American AI models. These are queries in AI chats or tools intended to reverse engineer how AI models work. In a July post on X, US Secretary of the Treasury Scott Bessent assailed this practice as “industrial-scale” intellectual property theft.
Meanwhile, the Trump administration has sought to protect America’s AI lead ...
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Noah Kirsch is a contributing writer for Directorship and Directorship Online.
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