National Security
Technology · Issue No. 09
Artificial Intelligence
The technology, the business models and the regulatory questions that will define the next era of commercial competition.
Special.Report Editors
November 2023
EXECUTIVE SUMMARY
Artificial intelligence is transforming the competitive landscape of virtually every industry while simultaneously generating a regulatory debate of extraordinary complexity. This report examines the current state of AI development, the business models emerging around large language models and generative AI, the liability and intellectual property questions that remain unresolved, and the policy frameworks taking shape in Washington and Brussels.
THE REPORT
The release of ChatGPT in November 2022 marked a threshold moment in the public understanding of artificial intelligence — not because the technology was new, but because its capabilities had become undeniable. Within months, every major technology company had announced generative AI products, and every major industry was assessing the implications.
The commercial stakes are substantial. The market for AI-related products and services is projected to reach trillions of dollars within the decade, and the companies that establish dominant positions in foundation models, enterprise applications and AI infrastructure will likely define the competitive landscape for a generation.
The regulatory stakes are equally significant. Questions about liability for AI-generated content, intellectual property rights in training data, algorithmic discrimination, and the concentration of AI capabilities among a small number of companies are all before regulators and courts in multiple jurisdictions.
This report examines the technology landscape, the emerging business models, the unresolved legal questions and the policy frameworks that will shape how artificial intelligence develops — and who benefits from it.
