Artificial Intelligence and the Great Divergence

This article, serving as an introduction to a policy paper, explores the potential for Artificial Intelligence (AI) to create a "second Great Divergence" in global economic growth, similar to the Industrial Revolution. It outlines the Trump Administration’s strategic efforts to ensure the United States remains the global leader in this transformative era.The summary of the key themes is as follows:AI as a Transformative Power: The paper compares AI to the Industrial Revolution, suggesting that just as industrialization allowed some nations to accelerate past the rest of the world, AI could lead to a new period of significant economic divergence.The Strategy for U.S. Dominance: The Trump Administration is laying the groundwork for "American AI dominance." This strategy relies on three pillars: accelerating innovation, infrastructure development, and sweeping deregulation, alongside an emphasis on technology exports.Data-Driven Focus: Recognizing the uncertainty of the future, the paper focuses on empirical, measurable metrics—such as GDP impact, labor force changes, and adoption rates—to track the "breakneck pace" of the industry.Rapid Evolution: The text notes that AI metrics are currently doubling every few months. This speed means that the AI of the future will likely be vastly different from current technology, necessitating constant monitoring and agile policy.The Global "Race": The article concludes with a quote from President Trump, who asserts that since America started the AI race, his administration is committed to ensuring that America wins it.Conclusion:The article frames AI not just as a technological tool, but as a geopolitical and economic engine. It positions the U.S. government as an active participant in a high-stakes global competition to secure the economic benefits of the "Age of Imagination."