Artificial intelligence (AI) is reshaping global competition, but the challenge for U.S. companies is no longer just innovation, but survival in a geopolitical environment where national security and corporate responsibility overlap. While many executives have prepared their organizations for the transformative potential of AI by identifying use cases, investing in infrastructure, and tackling implementation challenges, many executives have been preparing their organizations for the transformational potential of AI. Attention must also be paid to national security, which is an important aspect.
This doesn’t just mean compliance checklists or preparing to deal with a public relations crisis. It’s about recognizing the broader geopolitical, economic, and security implications of AI adoption and the role organizations play in protecting the United States and its interests.
New demands for national security
AI is no longer just a tool for optimizing supply chains and streamlining customer service. This is a strategic asset, and one that adversaries are targeting with unprecedented concentration. The U.S. government clearly recognizes this reality. For example, the Department of Defense views AI as a foundational technology for maintaining military superiority. Federal agencies are tightening export controls, scrutinizing data flows and focusing on protecting critical infrastructure. These actions are not optional. They are rational responses to real threats.
China’s ambitions in AI are particularly instructive. The Chinese government has clearly stated its goal of becoming the world leader in AI by 2030. This goal is not limited to academic benchmarks or industry honors. It is the basis of a broader geopolitical strategy. Chinese leaders understand that AI will not only determine who innovates, but also who will lead economically, technologically, and militarily.
This desire for control manifests itself in many ways. Chinese companies are incorporating AI into surveillance systems that track millions of citizens at home and abroad. Technologies such as facial recognition and predictive policing are not just tools of social control, but also mechanisms for projecting influence globally. Furthermore, China’s industrial policies, such as subsidies for AI-related technologies, give Chinese companies an advantage in global markets and create dependencies that can be leveraged in the event of geopolitical conflict.
A striking example of this is China’s Belt and Road Initiative. This is a global infrastructure strategy that incorporates AI systems into a digital “Silk Road” to expand Beijing’s political and economic influence. Many countries participating in the initiative are adopting Chinese-made AI systems for smart cities and government operations. These systems have long-term dependencies that require continued support, updates, and integration by the countries that depend on them, allowing Beijing to exert its political and economic influence on a global scale. It will be.
This strategy highlights the lengths adversaries will go to to secure strategic advantage, a trend further exemplified by recent incidents targeting U.S. AI infrastructure.
From espionage targeting proprietary algorithms to supply chain intrusions involving hardware components, threats are sophisticated and pervasive. For example, reports of vulnerabilities embedded in Chinese-made hardware components have raised alarms that backdoors may exist in critical systems. These risks are not theoretical. They are a daily reality in a tightly connected global economy.
The impact goes beyond intellectual property theft. Consider the potential consequences of hostile operations. Corruption of AI systems during the training phase can subtly skew results and remain undetected until important financial, operational, or even life-or-death decisions are affected. This is not a hypothesis. Adversarial attacks against machine learning systems are well-documented and rapidly evolving.
It is therefore up to us to reinvent how policymakers think about trade policy more broadly, putting digital frameworks at the heart of it. At the very least, a bespoke digital trade agreement provides the tools to move forward to keep trade relationships fit for purpose and support business readiness to meet future challenges.
Why industry’s role matters
There are limits to what the US government can do. Unlike China, where industry is run at the direction of the state, America’s strength lies in its innovative private sector. This dynamic is a double-edged sword. On the one hand, it enables creativity and agility that can lead to breakthroughs. On the other hand, vulnerabilities arise when companies underestimate the strategic aspects of their business.
Consider the intersection of AI and supply chain security. Many organizations rely on foreign hardware (GPUs, sensors, and even basic semiconductors) to support their AI deployments. If these components come from a hostile state, there may be backdoors and vulnerabilities that compromise not only the integrity of the system but the broader security of critical sectors. The recent semiconductor shortage has highlighted how vulnerable these supply chains are. Now, when you layer that vulnerability with the risk of malicious interference, the risks become even clearer.
Washington recognizes these challenges and is beginning to act accordingly. Export controls for advanced semiconductors, efforts to support critical industries, and policies that strengthen public-private partnerships all point to a common goal of securing America’s AI future. However, these measures will not be successful without active industry participation. The private sector is not a bystander in this battle. That’s the front line.
For companies, this is not just about avoiding sanctions and regulatory penalties. It’s about competitiveness. Companies that demonstrate strong security practices and alignment with national priorities are better positioned to secure federal contracts, attract customers from around the world, and reduce reputational risk in an era of heightened geopolitical scrutiny. You can see that there is. Conversely, companies that fail to adapt will face an uphill battle as both public and private stakeholders increasingly demand accountability.
Wider stakes for the industry
Failure to address national security risks is a systemic issue, not just the vulnerability of individual organizations. The interconnectedness of the global economy means that a breach of one node can have cascading effects. For example, an attack on a single AI-powered logistics platform could disrupt supply chains across industries and amplify economic instability.
Additionally, as adversaries continue to innovate, the gap between offensive and defensive capabilities widens. A reactive attitude is no longer enough. Companies must adopt proactive strategies that integrate security into the DNA of their AI initiatives. This requires not only technological solutions, but also cultural and organizational changes.
Imagine the impact of an adversary subtly influencing the decisions of AI systems used to manage critical infrastructure, such as energy grids or transportation networks. The damage could cascade beyond the original goal, undermining public trust, destabilizing the economy, and triggering broader geopolitical repercussions. These risks highlight why no company, regardless of size or industry, can ignore its role in protecting the broader ecosystem.
Taking Action: A Roadmap for Leaders
For CEOs and CISOs who are ready to take these challenges seriously, several steps can help address national security risks.
First, conduct a geopolitical risk assessment. Evaluate AI supply chains, partnerships, and data practices from a geopolitical perspective. Where are the hardware components sourced from? Who is the cloud provider? What jurisdiction does it operate in? The answers to these questions should provide a detailed risk map. Partner with a company that specializes in geopolitical intelligence to understand how changes in global politics impact your vulnerability.
Second, cooperate with the U.S. government. Build formal relationships with federal agencies such as the Department of Defense, Department of State, and Department of Commerce. Work on public-private partnerships focused on AI security and participate in federal initiatives such as the National Artificial Intelligence Initiative. These partnerships go beyond compliance to provide insight into emerging threats and provide access to tools that can strengthen your organization’s security posture.
Third, integrate “security by design” throughout the AI lifecycle. Security must be a central consideration from the beginning of any AI project. This includes securing training data, securing cloud storage, and testing models against adversarial attacks. Implement automated systems to monitor unusual patterns and anomalies in AI behavior after deployment. Consider leveraging a framework such as the National Institute of Standards and Technology (NIST) AI Risk Management Framework to standardize your approach to identifying and mitigating risks.
Finally, build organizational resilience. National security risks are not just technical, but operational and cultural. Create cross-functional teams that integrate security experts, legal advisors, and technical personnel to ensure a holistic approach. Train employees to recognize and respond to emerging threats and ensure your organization fosters a culture where security considerations are built into innovation. Regularly simulate disruptive AI-related scenarios to test readiness and identify weaknesses. Use your leadership position to advocate for industry-wide standards and best practices in AI security. Collaborate with peers, industry organizations, and policymakers to advance efforts to align private sector innovation with public sector priorities. Contributing to a secure and resilient AI ecosystem strengthens not only your organization’s safety but also your reputation as a responsible industry leader.
conclusion
The rise of AI brings extraordinary opportunities but also great responsibilities. As a CEO and CISO, you are in a unique position to navigate this duality. You have already proven your ability to lead organizations through the complexities of digital transformation. The challenge now is to expand that leadership to account for the broader impact of AI in an era of heightened national security risks.
Your organization doesn’t operate in a vacuum. They are part of a larger ecosystem that shapes and is shaped by global forces. By addressing the national security aspects of responding to AI, you will not only future-proof your business, but you will also play a vital role in ensuring America is safe, competitive, and free. .
The stakes are high, but so are the consequences. Now is the time to act boldly. As stewards of innovative technology, you hold the key to both innovation and resilience. The question is not just whether you can adapt, but whether you can lead.
The answer to that question will determine the security of your legacy and the systems that support it.
