The new year brings a pivotal moment for American technology and economic competitiveness. As a new administration takes office, the United States stands at a unique juncture to harness artificial intelligence as a transformative force—akin to electricity in its potential to propel growth, create opportunities, and redefine global leadership. Microsoft envisions a three-part blueprint for American tech success: invest in world-class AI technology and infrastructure, expand AI skilling to empower workers across the economy, and promote American AI exports to allies and partners worldwide. Achieving this vision will require a broad, collaborative partnership among government, the private sector, and the nation’s educational and non-profit communities. The journey begins with foundational investments and a shared commitment to advancing AI leadership while ensuring that benefits are widely distributed across all regions and sectors of the economy.
Technology as a Foundation for Economic Growth
Since the mid-1700s, humanity has advanced through successive industrial revolutions driven by breakthrough technologies. The steam engine catalyzed the first industrial revolution in Britain, accelerating economic growth through innovations in ironworking and machinery. The late 1800s witnessed the second industrial revolution, with electricity powering a new era of mass production and the transformation of machine tooling into the backbone of the world’s largest manufacturing economy. The latter portion of the 20th century introduced the third industrial revolution, marked by computer chips and software, and the United States again led a global shift in productivity and entrepreneurship. This historical pattern is inseparable from the concept of general-purpose technologies (GPTs)—broad capabilities that spark widespread innovation and productivity gains across multiple industries. Ironworking, electricity, machine tooling, computer chips, and software are among history’s most influential GPTs, and AI now stands poised to join that distinguished lineage.
Looking forward, artificial intelligence is positioned to become a GPT of unprecedented reach and impact. AI promises to accelerate innovation and raise productivity across nearly every sector of the economy, from manufacturing to healthcare, finance to agriculture, education to public administration. The United States has the opportunity to lead this wave by playing to its core strengths: a vibrant private sector, a robust ecosystem for research and development, and open collaboration with international partners. America’s technological leadership has long rested on private investment and the ingenuity of American companies of all sizes, from nimble startups to large, established enterprises. This ecosystem has produced remarkable AI advances—from foundational software platforms to specialized AI-enabled applications—and has been complemented by a growing cadre of AI firms that operate at speed, scale, and scope.
central to this vision is a broad infrastructure foundation. Large-scale AI initiatives require resilient, scalable data centers, advanced processing hardware, and a secure, open network that supports collaboration and deployment at global scale. Microsoft’s experience reflects this reality. The company has been forging partnerships with leading AI developers and platforms, including collaborations with OpenAI and a spectrum of emerging firms such as Anthropic and xAI, while also designing in-house AI-enabled software and services. Across the economy, software architectures are evolving to embed AI into core workflows, turning traditional applications into AI-enabled tools that augment human capabilities.
The path to sustainable AI-driven growth also relies on a thriving, open, and competitive technology ecosystem. This includes the broader ecosystem of open-source software, varied chip suppliers, system integrators, service providers, and a global community of software developers who create customized solutions for customers. The growth of AI-enabled data centers is itself a collaborative enterprise, built by construction firms, steel manufacturers, electrical and cooling technology leaders, and skilled craftsmen such as electricians and pipefitters—many of whom belong to organized labor unions. The integration of these diverse capabilities underpins the technology backbone that makes AI possible at scale and across geographies.
Two enduring ingredients underpin United States AI leadership: sustained support for basic research and continuous private-sector investment in product development. Since the Second World War, the U.S. has relied on two critical pillars to fuel innovation. First is a robust commitment to basic research funded through universities and federal agencies—with foundational work often published publicly and driven by curiosity rather than immediate commercial returns. Second is an equally enduring dedication to translating ideas into market-ready products through private-sector investment and entrepreneurship. Microsoft Research exemplifies how basic research and applied development can reinforce one another, while universities, NSF funding, and federal support help keep the pipeline of talent and ideas strong. The combination of fundamental science and practical development creates a virtuous cycle that accelerates progress and spreads benefits widely.
The incoming Administration can reinforce these foundations by building on policies from the prior term. In 2019, an executive order laid groundwork for AI leadership by prioritizing federal AI research investments and expanding access to federal data and computing resources. Five years later, there is an opportunity to extend and deepen these efforts by increasing basic research funding at the National Science Foundation and in universities, while ensuring that product development remains robustly privately funded. This balanced approach—more support for fundamental research paired with strong private-sector development—can accelerate AI leadership while maintaining a healthy, competitive market.
AI Skilling: Building a National Talent Pipeline
Skilling a broad and diverse workforce was a centerpiece of the 2019 AI-focused executive order, and it remains a central requirement for sustaining AI leadership today. The aim is to embed AI literacy into the economy, cultivate deep expertise where needed, and create a pipeline of talent prepared to design, deploy, and manage AI systems across industries. AI skilling is essential not only to meet the needs of today’s employers but to anticipate the jobs of tomorrow.
AI skilling intertwines with the history of skill development in the United States. Past transitions—ironworking in the 1700s, machine tooling in the 1800s, and software development in the late 20th century—illustrate how knowledge transfer, apprenticeship models, and formal education have driven broad adoption of new technologies. Apprenticeships, technical associations, and expanded college and university programs played pivotal roles in spreading capability. The same principle applies to AI today: a robust skilling environment helps workers adapt to new tasks, collaborate with AI systems, and pursue higher-value roles that leverage the capabilities of intelligent tools.
A national AI talent strategy must be inclusive, practical, and far-reaching. It should ensure that AI fluency is accessible to Americans of all ages and backgrounds, equipping them to apply AI tools in their current jobs and to pursue advanced opportunities. This includes developing a continuum of learning pathways—from foundational literacy to advanced specialization in AI engineering or AI-enabled business management—so that individuals can choose the path that fits their skills, interests, and local job markets.
Microsoft has articulated a concrete, delivery-focused plan to scale AI skilling across the country. In 2025, the company aims to train 2.5 million American students, workers, and community members in AI skills that will help them secure new jobs, transition to new careers, or establish new businesses. The company’s approach is rooted in broad partnerships and a variety of learning modalities to reach diverse audiences.
A central element of this strategy is the collaboration with community colleges, which play a critical role in American workforce development. Community colleges offer accessible, affordable, and flexible pathways for students to gain AI-related competencies. To accelerate this effort, Microsoft is partnering with the National AI Consortium for Community Colleges to align AI curricula with industry needs and local labor market demands. Faculty training is being developed through AI Bootcamps to prepare educators to teach in-demand AI skills that meet regional workforce needs. These initiatives help ensure that the next generation of workers can thrive in an AI-enabled economy.
Training programs extend beyond traditional degree programs. Microsoft is developing AI training for teachers to empower classrooms with AI-enhanced pedagogy and is collaborating with workforce agencies to provide AI skills and career guidance through a Microsoft Copilot for Career Navigators—a set of tools designed to support communities as they adapt to the AI-driven economy. The aim is to deliver practical, job-relevant training that accelerates career progression.
Efforts also reach into rural and underserved regions. The National 4-H AI Skills Partnership will use Minecraft Education to introduce AI concepts and raise AI fluency among 1.4 million youth, while FarmBeats for Students in partnership with Future Farmers of America helps young people use AI to optimize precision agriculture. The overarching takeaway is clear: AI can unlock new means of learning and new ways to work. The United States has an opportunity to equip every American with AI skills that lead to higher wages and more rewarding careers, with the national North Star being broad, accessible AI literacy.
The transformative potential of AI goes beyond individual careers. AI can enable small businesses with limited staff to compete more effectively by automating routine tasks, optimizing processes, and enhancing customer engagement. For many workers, AI adoption will lower entry barriers to professional advancement and create a fertile ground for entrepreneurship. In turn, AI can boost productivity across sectors, contributing to overall economic growth and helping to reduce persistent inequalities by expanding opportunity to those with less post-secondary education.
Beyond job-specific training, the skilling effort also emphasizes practical, on-the-job learning, online platforms such as LinkedIn Learning, and continuing education at community colleges or four-year institutions. Some individuals will pursue deeper, more specialized training in AI engineering or in business-centric applications—training that equips them to design, deploy, and manage AI systems within organizations across the private, public, and non-profit sectors. The aim is to establish a broad, multi-pathway ecosystem that supports lifelong AI learning.
In keeping with this approach, Microsoft’s programs include broad outreach to all corners of the country, including rural communities. The company emphasizes that AI literacy and skills development should be embedded in regional workforce ecosystems to reflect local industry needs. The partnership with community colleges and other education providers seeks to ensure that AI training aligns with real-world job opportunities, so that learning translates into meaningful careers.
The skilling agenda also foregrounds the role of industry in education. Tech companies, academic institutions, and non-profit organizations collaborate to design curricula that reflect current and anticipated market demands. For example, AI Bootcamps prepare instructors to teach new AI-focused competencies and help build a workforce capable of implementing AI solutions across diverse sectors. This collaborative model helps bridge gaps between academic knowledge and practical, applied skills that employers seek.
An important takeaway from these efforts is that AI skilling is not a one-size-fits-all program. It requires a flexible, layered approach that combines foundational literacy, hands-on practice, on-the-job learning, and continuous upskilling. It also requires attention to equity and access so that individuals from different backgrounds—and in different regions—can benefit from AI education. The goal is to reach every corner of the nation, including rural settings, and to ensure that AI skills contribute to economic mobility for people who have historically faced barriers to opportunity.
A core question remains: how will AI skilling translate into measurable economic outcomes? The answer lies in a comprehensive, national strategy that aligns education providers, workforce agencies, and industry partners around shared objectives, together with a robust funding framework that supports ongoing training, credentialing, and career advancement. This would enable millions of Americans to gain AI fluency, pursue higher-paying jobs, and help the country realize the broad productivity gains that AI can unlock.
AI exportsA third critical priority for 2025 is advancing American AI exports. A strategic emphasis on exporting AI capabilities internationally reflects a recognition that global markets are central to sustaining domestic innovation and growth. President Trump’s 2019 executive order rightly emphasized the creation of an international environment that opens markets for American AI industries, while also protecting the United States’ technological advantages and critical AI technologies from acquisition by strategic competitors and adversaries. The rise of generative AI since that order has only increased the importance of export strategy as a lever for growth and national security.
Competition with China has become a defining feature of this era. The rapid development of China’s AI sector has intensified competition on the global stage, and much of this rivalry is played out in international markets where AI platforms and services can gain rapid network effects. The race is influenced by how quickly different nations adopt and standardize AI technologies, how they manage data governance and security, and how they balance protections for sensitive AI components with the need for broad deployment and innovation. A narrow focus on export controls alone is insufficient; a broader strategy is needed to accelerate American AI adoption abroad and to support the global expansion of American AI ecosystems.
One key lesson from the past two decades of technology exports is the importance of speed and momentum. Early market leadership can determine the trajectory of global adoption, as faster players capture network effects that become self-reinforcing over time. Huawei’s rapid expansion in telecom equipment, facilitated by substantial government subsidies and aggressive market entry, reshaped international networks and raised cybersecurity concerns. While export controls remain essential for safeguarding critical technologies, the larger strategic imperative is to ensure that American AI can compete effectively on the global stage by offering superior value, trust, and security.
The United States possesses several enduring advantages in this competition. American firms are at the forefront of AI technology development and have demonstrated a track record of innovation and reliability in sensitive domains like cybersecurity, privacy, and safety. U.S. AI products and platforms are often perceived as more trustworthy relative to those from some rivals, a perception that matters for global adoption. The private sector’s capacity to invest in AI infrastructure—across chips, models, data centers, and software—gives the United States a formidable lead in delivering high-performance, secure AI solutions.
To translate these advantages into global reach, the United States must pursue a pragmatic export policy that balances security with a vibrant, scalable supply of AI technology to allied and partner countries. This includes reinforcing trusted data centers that meet stringent cyber and physical security standards, while enabling U.S. companies to expand rapidly and reliably to meet international demand. It also requires a concerted diplomatic effort to align with allies and partners through international forums and existing alliances on technology governance and AI standards.
American industry players, led by the private sector, are already scaling AI deployment worldwide. Firms across the technology landscape—Google, Amazon, and others—are accelerating investments in AI infrastructure and deployment. The goal is to ensure that American AI platforms and ecosystems remain the preferred choice for international markets, driven by performance, reliability, and a commitment to responsible use. Public policy should complement this private-sector momentum by shaping export controls and regulatory frameworks that preserve national security without unduly hindering global expansion.
International collaboration further strengthens the export narrative. The United States can build on existing diplomatic efforts to promote technology cooperation and standards alignment. The arc of this strategy includes expanding regulatory cooperation with European, Asian, and North American democracies through platforms like the G7 and related discussions. The objective is to create a coherent, trusted ecosystem for AI adoption that benefits both the United States and its partners, while preserving the incentives for private investment and innovation that fuel global progress.
A concrete, actionable dimension of this export strategy is bold, multi-country investment and infrastructure commitments. Microsoft’s leadership illustrates this approach: last year, the company announced plans to invest over $35 billion in 14 countries over three years to build trusted AI and cloud datacenter infrastructure. This global infrastructure now spans 40 countries, including in the Global South, where traditional hardware and cloud investments may lag, and where AI potential could deliver meaningful development benefits. Partnerships with regional players exemplify a practical path for scaling AI: collaboration with UAE-based G42 to deploy AI infrastructure in Africa, including Kenya, and joint efforts with major investment firms like BlackRock and MGX to establish an international fund capable of adding up to $100 billion for AI infrastructure and the AI supply chain.
The competitive landscape will see other major players stepping up their investments as well. Google, Amazon, and other technology leaders are channeling substantial resources into AI, recognizing that private capital is a crucial driver of global adoption. While public spending on subsidies may be leveraged in some regions to accelerate development, the most effective strategy for the United States is to maintain an empowering environment for private sector-led growth. A policy posture that prices regulatory risk sensibly, preserves key national security protections, and supports rapid deployment will help American AI scale internationally without constraining innovation.
This framework recognizes a practical reality: rivals may engage in targeted subsidies to promote their platforms in developing markets. The best counterstrategy is not isolation or overbearing public spending, but a confident, well-coordinated private-public approach that makes American AI the most compelling choice for governments and enterprises worldwide. By maintaining a transparent, standards-driven approach to AI governance and security, the United States can set the pace for responsible AI adoption, ensuring that global users reap the benefits of robust, trusted technologies.
In this context, the U.S. advantage goes beyond existing capabilities and into the realm of strategic collaboration. The private sector’s capacity to innovate, the strength of capital markets, and the potential of international diplomacy work together to create a durable competitive edge. The Abraham Accords and other diplomatic initiatives that strengthen economic and technology ties with key regions provide a platform for expanding American AI ecosystems. The goal is not merely to win market share but to shape global AI adoption in ways that reinforce security, openness, and shared prosperity.
Microsoft’s role in this international expansion embodies the practical pathway forward. The company has committed to substantial global investments and partnerships that enable the deployment of trusted AI infrastructure in multiple countries. This includes the broader ecosystem of collaboration with other technology leaders, investment partners, and government entities that collectively advance AI capabilities while maintaining high standards for privacy, safety, and security. Through these efforts, the United States can strengthen its position as a hub of AI innovation and a reliable partner for countries seeking to adopt advanced AI solutions that improve governance, productivity, and everyday life.
A balanced export policy will also consider how to manage the global AI supply chain to minimize risks and ensure reliability. It will require careful calibration of export controls to protect sensitive components without creating bottlenecks that hinder legitimate international adoption. The aim is to provide a steady, secure supply of American AI technologies to allies and friends while continuing to push for secure standards, resilient infrastructure, and responsible AI practices worldwide.
Causes for American Optimism
As the four-year horizon unfolds, there are robust reasons for optimism about American AI leadership. The United States benefits from a solid foundation in AI technology, anchored by a dynamic private sector that has repeatedly demonstrated its ability to translate scientific breakthroughs into scalable, market-ready solutions. With a coherent, forward-looking government policy that supports well-funded basic research and a thriving climate for private-sector innovation, the nation can sustain leadership while expanding opportunities across the economy.
A strong educational system underpins this outlook, enabling the diffusion of AI skills and competencies that power the next generation of workers. By embedding AI literacy into curricula, expanding access to higher education and vocational training, and fostering partnerships between academia, industry, and public agencies, the United States can accelerate the diffusion of AI capabilities and enable individuals to participate meaningfully in the AI-enabled economy.
Technology platforms and non-profit organizations also play a crucial role in expanding AI’s reach. They can help people use AI to enhance their careers, increase productivity, and pursue new lines of work. The United States benefits from a vibrant, innovation-driven business sector that adapts rapidly to new technologies and uses them to create value, improve services, and strengthen the competitiveness of American firms on the global stage. If the administration can pair a strong national AI talent strategy with public-sector innovations that improve government efficiency and service delivery, the nation will have a powerful, multi-dimensional leverage to strengthen its position.
A key driver of optimism is the potential for international adoption of American AI through a well-coordinated global strategy. Americans are ready to lead in the development and deployment of AI that respects privacy, upholds security, and adheres to ethical standards. American products enjoy broad trust relative to many competitors, a critical factor in global markets where stakeholders weigh risk, reliability, and governance when selecting AI platforms. The private sector’s ability to invest in global infrastructure—spanning chips, models, software, and secure datacenters—remains a core strength that can outpace rivals who rely more heavily on government subsidies or protectionist policies.
The path to achieving these optimistic outcomes involves pragmatic, adaptable policymaking. Balancing export controls with the need to accelerate private-sector expansion, aligning with international partners on standards and governance, and fostering a collaborative ecosystem across industry, academia, and civil society will be essential. A strong, coherent national AI strategy that emphasizes responsible AI development and deployment will help sustain momentum and ensure that AI’s benefits are broadly shared.
Finally, the United States is well-positioned to outpace rivals in the global race for AI adoption by leveraging the strength of its private sector and its diplomatic and economic relationships. AI’s potential to create new opportunities—such as a new generation of AI-enabled jobs, improved productivity, and equitable access to higher-wage careers—offers a compelling case for continued investment and strategic collaboration. With a balanced and pragmatic approach to policy, the United States can secure a leadership position in the international AI landscape, delivering prosperity and innovation for years to come.
The core message is clear: to secure The Golden Opportunity in AI, the United States must unify its private sector, government, and educational and non-profit institutions around a shared mission. By combining world-class AI technology and infrastructure, comprehensive skilling pipelines, and proactive export and international collaboration, the country can realize a future in which AI catalyzes broad-based economic growth and strengthens its standing in a rapidly evolving global economy. This teamwork—grounded in practical policy, sustained investment, and a commitment to responsible AI—will form the foundation of a golden era of American prosperity.
Conclusion
The moment calls for ambitious, coordinated leadership that aligns technology, education, policy, and commerce. The United States has the capability to harness AI as a true GPT—delivering transformative benefits across industries, expanding opportunity for workers, and strengthening the nation’s competitive position on the world stage. By pursuing a three-part vision—advancing AI technology and infrastructure, expanding AI skilling to prepare a broad and diverse workforce, and promoting American AI exports with smart international cooperation—the nation can build a resilient and inclusive AI economy. The path forward depends on sustained investment in foundational science, robust collaboration between public and private sectors, and a shared commitment to responsible, ethical AI that respects privacy and security while enabling real-world impact. If policymakers, business leaders, educators, and civil society work together, the United States can turn AI’s promise into durable prosperity for the next generation and beyond.
