AI is anticipated to reshape warfare similarly to how gunpowder and tanks did in the past. Countries like China and Russia are actively pursuing AI for military advantages, with China aiming to be a leader in AI by 2030. However, while AI will enhance military operations, it is unlikely to replace human commanders or fully autonomous weapon systems on the battlefield.

Data is becoming crucial for military operations, providing a deeper understanding of the battlespace. The ability to process large data sets with AI allows military commanders to gain insights that were previously unattainable. This capability is essential for both offensive and defensive strategies, as it enhances situational awareness and decision-making.

While the U.S. currently leads in talent and technology, China has a significant advantage in data due to its large internet user base and less restrictive regulatory environment. The competition between these two nations centers on four key resources: data, computing power, talent, and institutions, which will determine future military and economic advantages.