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Executive Summary
This AI Action Plan, America 2.0: Mission T.47, outlines a comprehensive approach to build a robust AI ecosystem through talent development, leadership renewal in key industries, strategic public-private investments, accelerated commercialization, and partnerships across sectors and borders. Key recommendations include:
Government, policymakers and industry leaders must act decisively on these recommendations. It must “invest substantially more resources in AI innovation to protect its security, promote its prosperity and safeguard the future of democracy” (NSCAI Report: US Can Gain Leading Edge on AI With This Plan | GovCIO Media & Research). The following sections provide detailed proposals and actions under each strategic theme.
The Imperative for an AI Action Plan: Artificial Intelligence has started to revolutionize and threaten industries, national security, and societies. The U.S. federal government and private sector have launched numerous AI initiatives, but efforts remain fragmented across agencies and regions. To maintain U.S. leadership a coordinated strategy must unite stakeholders, focus investments, and guide AI development in line with national priorities.
America 2.0, Mission T.47: This AI Action Plan presents a comprehensive strategy for AI-driven innovation, national security, and economic transformation. The plan centers on leveraging existing government infrastructure, such as the National Institute of Standards and Technology (NIST) Manufacturing Innovation Institutes, Manufacturing Extension Partnerships (MEPs), and Economic Development Administration (EDA) networks, to create a collaborative AI ecosystem.
Objectives: This proposal aligns with the White House Office of Science and Technology Policy (OSTP) vision for a National AI Strategy. It aims to:
The following sections articulate five key themes of the plan, each corresponding to a strategic pillar of action. These themes echo national priorities and mirror elements highlighted in the OSTP’s AI Action Plan development process.
Collaborative Innovation Hubs (CIHs): We propose establishing Collaborative Innovation Hubs as regional focal points of AI activity. CIHs will unite government agencies, private industry, academic institutions, and investors into consortia focused on AI innovation.
Each hub addresses regional challenges (e.g., a Rust Belt CIH focusing on manufacturing and a Silicon Prairie CIH on agriculture) while contributing to national AI objectives. By leveraging and evolving existing entities like EDA offices, MEP centers, and NIST institutes, the CIHs will transform these organizations into active enablers of AI-driven ecosystems.
Key Functions of CIHs: Each Collaborative Innovation Hub will perform critical functions to build the AI ecosystem:
Strategic Partnerships Beyond CIHs: In addition to the regional hubs, a broader framework of partnerships is crucial. This includes:
By weaving together regional hubs, national consortia, and international collaborations, the United States can create a dense web of strategic partnerships.
We propose targeted initiatives for economic transformation and commercialization of AI innovations for re-industrializing America through specialized centers and programs integrated within the Collaborative Innovation Hubs.Centers for Economic Transformation will provide expertise and resources to help industrial companies improve their efficiency and strength for growth and innovation. The proposed centers include:
By establishing these targeted centers from financial planning to technical R&D to commercialization, businesses, especially small and mid-sized ones, will have access to end-to-end support to identify areas of opportunity and address them for a solid focundation to then implement the entire value chain: innovation, validation, production, and diffusion of AI technology.
A less-discussed but urgent challenge in maintaining America’s industrial and technological leadership is the coming wave of retirements among business owners and experts of the baby boomer generation. In the next decade, a large proportion of owners of small and medium-sized businesses (SMBs), many in sectors crucial to national security and economic stability, intend to retire.
Yet, the majority lack concrete succession plans (NSCAI Report: US Can Gain Leading Edge on AI With This Plan | GovCIO Media & Research) (Small business survival in the wake of the silver tsunami).
This looming “silver tsunami” of retiring leadership puts at risk vast amounts of intellectual capital (IC), the knowledge, skills, and networks that these leaders carry. If their businesses collapse or are sold off without continuity, it could erode the industrial base in manufacturing, defense contracting, energy, and other areas vital to national interests.
The Urgency of Bridging the Leadership Gap: Over 10,000 baby boomers reach retirement age every day (Small business survival in the wake of the silver tsunami). By 2030, the entire boomer generation will be at or past retirement age, and 40% of U.S. small business owners are in this cohort (Small business survival in the wake of the silver tsunami). Reports estimate less than one-third of small business owners have a formal exit or succession plan (Small business survival in the wake of the silver tsunami). I
n other words, tens of thousands of firms, representing millions of jobs and significant economic output, may face leadership crises. In national security-related sectors (like precision manufacturing for defense, or critical infrastructure services), the stakes are even higher. If these businesses fail to transition, the U.S. could lose domestic capacity in areas where it cannot afford to be dependent on foreign supply.
Therefore, strategic intervention is needed to preserve these businesses, retain their know-how, and mentor new leadership to take the helm.Strategies for Generational Transition: This Action
Plan proposes several strategies to facilitate successful leadership transitions in critical industries:
Preserving and Developing Intellectual Capital: Underpinning all these strategies is the goal of preserving the invaluable intellectual capital in these businesses. Intellectual capital (IC) includes proprietary knowledge, trade secrets, skilled teams, and processes honed over decades. If not intentionally transferred or retained, IC can dissipate when an owner retires or a company is sold to an outsider who fails to appreciate its value.
The U.S. cannot afford to lose the expertise in domains like defense manufacturing, aerospace engineering, or even local infrastructure services, as these are the engines of innovation and readiness.However, they are often underutilized even when programs exist to help with succession or knowledge transfer.
Common challenges include: lack of awareness of assistance programs, bureaucracy and red tape that deter participation, financial constraints for new owners, misalignment of programs with industry needs, fragmentation of resources, and a focus by many firms on short-term survival over long-term planning.
To address these barriers:
By implementing these measures, the U.S. can provide the mechanisms that facilitate the generational transition in key industries and avoid a significant loss of capacity and know-how. Instead, retiring pioneers will become mentors and investors in the new generation, and incoming leaders will be empowered to rejuvenate legacy companies with fresh ideas and AI-driven improvements.
Preparing the American workforce for an AI-driven economy is a cornerstone of this Action Plan. Without a skilled and adaptable workforce, even the most advanced AI innovations will fail to gain traction, and the benefits of AI could accrue to only a few while many are left behind. To prevent this, we need a strategic, multifaceted AI workforce development initiative that spans education, training, and policies to incentivize continuous learning.
National AI Workforce Initiative: We recommend the launch of a National AI Workforce Initiative, a coordinated effort across government agencies (Department of Education, Department of Labor, NSF, etc.), industry partners, and educational institutions, to rapidly expand AI-related skills at all levels. This initiative would serve as an umbrella for programs and funding targeting AI skill gaps, similar in spirit to past national efforts in STEM education but focusing on AI and data literacy. Key components of this initiative include:
Incentives for Employer-Led Training:
Employers should be key partners in workforce development. We propose strong incentives for companies to invest in upskilling their employees:
Alignment with Tax Policy (Section 174 Fix): Recent changes to U.S. tax code require R&D expenses to be amortized over years instead of deducted immediately, which can be a disincentive for innovation spending (Section 174: Understanding Research & Development expenditures). We support efforts to simplify Section 174 of the IRS Code to allow Small and Medium-sized Enterprises (SMEs) to deduct AI-related R&D and training expenses immediately. Immediate expensing lowers the upfront cost of investing in new technology and skills. Policymakers should prioritize reversing or adjusting any provisions that unintentionally discourage companies from making R&D and training investments. (Notably, experts have observed that the shift to amortization in 2022 has correlated with a slowdown in R&D spending (R&D Expert: Capitalization, Amortization Requirement Hurts Smaller). Swift legislative action on this front will remove a financial barrier to AI innovation.)
Re-skilling and Inclusion Programs: As AI changes the nature of many jobs, workers whose tasks are automated or augmented need pathways to new roles. Targeted re-skilling initiatives should be launched for occupations most at risk of AI-driven disruption and for communities that might be left behind:
Urgency and Current Gaps: The push for AI workforce development comes at a critical time. So far, only 14% of frontline employees have had any AI-related upskilling to date (Employers Train Employees to Close the AI Skills Gap). Meanwhile, demand for AI talent is skyrocketing: companies plan to spend billions on AI, but struggle to find qualified staff (AI Skills Gap | IBM). By aggressively implementing the above measures, we can close the talent gap and ensure American workers are prepared for the jobs of the future.
The National Security Commission on AI (National Security Commission on Artificial Intelligence (NSCAI) recommendations aling with this AI Action Plan’s workforce recommendations to build a strong pipeline of AI-proficient professionals.
The next section turns to the equally important task of funding and investment mechanisms to support all these initiatives.
Achieving the ambitious goals of this AI Action Plan will require substantial investment. Traditional government grants and private venture capital alone are insufficient, we must leverage public-private investment vehicles that combine the strengths of both sectors. By aligning incentives and co-investing in strategic areas, we can mobilize far more resources for AI deployment than either sector could alone, and ensure that results are rapidly scaled for national impact.
Establish a Public-Private AI Investment Arm: We recommend the creation of an investment entity or program dedicated to funding AI technologies and infrastructure through public-private partnerships (PPPs). This could be a new government-sponsored enterprise, a joint fund, or an interagency program that coordinates with private investors. The core idea is to blend “the resources, speed, and innovation of the private sector with the strategic direction, funding, and regulatory support of the government.” For example, consider a scenario where the government identifies a critical AI technology (say, AI for supply chain security), instead of only issuing grants, the PPP investment arm might create a fund where government money is matched with venture capital. Projects are selected jointly by public and private experts. This ensures both funding and private sector discipline (due diligence, speed) and public interest (security, broad benefit) are represented in projects.
Key features of this investment arm would include:
Deployment and Global Collaboration: In deploying public-private investment, the U.S. should harness international partnerships and alliances to amplify impact. The U.S. government should use its diplomatic and trade channels to encourage cross-border co-investment in AI initiatives, particularly cybersecurity and defense where allies face common threats.
Specific actions to structure these investments include:
Through aggregated public-private efforts and allied cooperation, we can achieve a competitive scale of investment while staying true to our market-driven and values-driven approach. As noted earlier, the NSCAI urged substantial investment to keep the U.S. ahead in the global AI race (NSCAI Report: US Can Gain Leading Edge on AI With This Plan | GovCIO Media & Research), public-private partnerships are a force multiplier to achieve that.
Importantly, aligning incentives through co-ownership also guards against pitfalls: it discourages pure short-term profit motives from sacrificing national interest (since the government has a seat at the table) and ensures government-funded projects maintain commercial viability (since private investors demand it). In essence, it marries mission with market, it aligns purpose and capital.
This AI Action Plan provides a structured blueprint for the United States to strengthen its leadership in artificial intelligence while safeguarding economic prosperity and national security. Through clear thematic strategies, building collaborative ecosystems, transforming industries with AI, managing leadership transitions, developing the workforce, and innovating in investment, the plan addresses the challenge from multiple angles. To move forward, the following immediate next steps are recommended for policymakers and industry leaders:
The United States stands at a pivotal moment. If we act decisively and collaboratively, we can usher in a new era of American innovation, an America 2.0 where AI technologies bolster our economy, reinforce our national security, and uplift all citizens' living standards.
Conversely, inaction or disjointed efforts risk ceding leadership to adversaries and exacerbating domestic divides. In closing, the message from experts and commissions is clear: the U.S. must act now (NSCAI Report: US Can Gain Leading Edge on AI With This Plan | GovCIO Media & Research).
By implementing the strategies in this document, decision-makers can ensure the country not only keeps pace with the AI revolution, but leads it in a direction that aligns with American values and interests. We can launch America into its next great chapter of technological advancement and societal prosperity with commitment and cooperation.
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