By Sasha Allen, AI Innovation and Data Rights Policy Research Fellow at Gen-Z Emerging Technology Action (ZETA)
From drone warfare to TikTok hearings on Capitol Hill, it’s becoming impossible to separate technology from diplomacy. Artificial intelligence (AI) isn’t just transforming daily life, it’s rapidly becoming a central tool of statecraft. Whether through shaping public discourse, managing infrastructure, or surveilling populations, AI now operates at the intersection of geopolitics and governance. Yet U.S. tech policy often remains domestically siloed, failing to grasp the strategic consequences of ceding leadership in this domain. That mindset risks leaving the United States unprepared for the geopolitical realities of the AI era.
In the international system, the nation that sets the standards for AI governance also shapes the future of global power distribution. As countries deploy algorithmic tools to govern populations, influence elections, and control information flows, the geopolitical implications are stark. When democratic states like the U.S. fall behind in developing or responsibly deploying AI tools, they leave a power vacuum that can be filled by centralized, surveillance-oriented regimes, threatening core values like data protection, privacy, and free speech. Recent examples, such as Spain partnering with Huawei or the UK aligning with OpenAI, reveal how AI is already being leveraged globally with real consequences for national sovereignty and democratic resilience.
AI must be treated not just as a regulatory or economic issue, but as a foreign policy asset. U.S. leadership in AI deployment is not automatically virtuous, it must be intentional, value-driven, and aimed at strengthening democratic institutions. The question is no longer if AI will be used as a tool of governance, but who will shape its norms and architecture first, and whether those systems will reflect democratic norms or authoritarian control.
Diplomacy in the Age of AI
Artificial intelligence is increasingly reshaping the tools of diplomacy and global governance. No longer just a technological arms race, AI is now a key instrument in how states forge alliances, influence international norms, and export governance models. Its integration into military operations, infrastructure initiatives, and strategic partnerships signals a new era in which digital architecture carries as much geopolitical weight as military bases or trade routes.
At the 2025 World AI Conference in Shanghai, Chinese Premier Li Qiang advanced a proposal for a globally coordinated AI governance framework rooted in China’s centralized model. It emphasizes state control over data, strict algorithmic oversight, and integration of AI into national security infrastructure, aligning with Beijing’s long-term goal of exporting its governance model through digital projects.
In contrast, the United States’ AI Action Plan, released this summer, focuses on accelerating AI infrastructure domestically, expanding export controls to protect critical technologies, and supporting allied adoption of U.S.-developed AI systems. While this signals a recognition that AI is a foreign policy instrument, it also prioritizes speed and competitive advantage over multilateral guardrails.
The European Union, through its AI Act, offers a third path: a rights-based regulatory framework that applies across sectors, positioning the EU as the global standard-setter for ethical AI governance.
These diverging strategies are not just about technology, they reflect competing political visions. The way each great power deploys AI will shape digital norms, geopolitical alliances, and the balance of power between open and closed societies.
What’s at Stake for U.S. Leadership
Whether the United States leads in deploying AI tools will shape the future of democratic norms, both domestically and globally. Data protection, free speech, and privacy are all on the line. In contrast to authoritarian powers that view AI as a mechanism for surveillance and control, the U.S. has the opportunity and responsibility to model a democratic approach. But it cannot do so without a coherent, federal AI governance strategy.
At present, the U.S. lacks a national data rights framework that clearly defines how AI systems can collect, use, and share information. In the absence of federal action, states are beginning to legislate their own AI rules, increasing the risk of regulatory fragmentation. This patchwork approach not only complicates domestic implementation but weakens U.S. leverage in shaping global norms.
Strategically, the AI Action Plan’s focus on infrastructure buildout and export controls reflects a growing recognition that AI is a tool of foreign policy. Yet the plan also signals a pivot away from consensus-driven frameworks like the G7 Code of Conduct, which aimed to foster shared guardrails for responsible AI development. By deprioritizing multilateralism, the U.S. risks ceding moral and narrative leadership to authoritarian actors. To maintain credibility with allies and anchor the global AI order in democratic values, the U.S. must recenter diplomacy and human rights in its tech policy.
Gen-Z’s Role in Digital Diplomacy
For Gen Z, digital platforms, AI-driven services, and online ecosystems are not just conveniences, they are political battlegrounds. Every search query, post, or swipe contributes to data flows that feed into geopolitical contests over information control and public opinion.
According to Pew Research Center, 97% of Americans aged 18-29 own a smartphone, and nearly 40% get news from social media platforms such as TikTok where algorithms shape exposure to political content. This generational immersion gives young people both unique insight and influence in shaping digital norms.
Gen Z leaders can push for transparency in AI systems, demand public oversight of data governance, and advocate for international cooperation on ethical standards. By doing so, they can help counter misinformation, resist mass surveillance, and narrow global digital divides. The future of AI governance will be determined not only by state actors and corporations, but by whether the next generation insists on embedding democratic principles into the digital infrastructure of the 21st century.
A Call for Strategic Governance
AI governance has moved from a niche policy issue to a core pillar of U.S. foreign policy. How the U.S. chooses to regulate and deploy AI will shape its capacity to uphold democratic values, influence global norms, and maintain trusted alliances.
To lead effectively, the U.S. must move beyond fragmented policymaking toward a coherent national strategy. That strategy should begin with establishing a comprehensive federal data rights framework, embedding AI diplomacy into foreign policy priorities, and strengthening public-private partnerships that balance innovation with democratic accountability.
In an era where the architecture of AI will define the architecture of global power, leadership will belong to the nation that can align technological capability with values-based governance. The U.S. has the tools to lead, but only if it treats AI as both a domestic imperative and a strategic instrument of statecraft.
