Unlike other military technologies driven by national security needs and developed with federal funding, AI is predominantly funded and advanced by commercial industry for civilian applications. However, there is a lack of understanding of the reasons commercial AI firms decide to work with the DoD or choose to abstain from the defence market. This thesis argues that the contract law and procurement framework are among the most significant obstacles. This research indicates that the commercial AI industry actually views the DoD as an attractive customer. However, this attraction is despite the obstacles presented by traditional contract law and procurement practices used to solicit and award contracts. Drawing on social exchange theory, this thesis introduces a theoretical framework, optimal buyer theory, to understand the factors that influence a commercial decision to engage with the DoD. Interviews from a sample of the participants explain why the AI industry holds such perceptions, opinions, and preferences about contracts generally and the DoD, specifically, in its role as a customer. This thesis concludes that commercial AI firms are attracted to contracts that are consistent with their business and technology considerations. Additionally, it develops best practices for leveraging existing contract law, primarily other transaction authority, to align contracting practices with commercial preferences and the machine learning development and deployment lifecycle.

As the 21st century rages on, success and failure of nations depends not only on their citizenry and governmental leadership, but heavily on the technological visions that countries embrace. If a nation takes the approach of sitting back or standing still as automation and Artificial Intelligence advance at ever increasing rates, that nation is destined to be left behind. However, if a country embraces AI and dedicates significant resources and top minds to ethical implementation, that country is destined to be a leader for decades to come. Recently Steve Mills, Chief AI Ethics Officer & Leader for Artificial Intelligence in the Public Sector, and Partner at Boston Consulting Group said quite eloquently "AI has become table stages for global national economic and technological competitiveness. This goes beyond nations capturing a piece of the large and rapidly growing AI market. AI is poised to transform nearly every industry. There is an imperative for nations to position themselves to integrate AI into these sectors. Particularly those sectors that are economically important to them. Failing to do so could erode their competitive position, creating opportunities for other, more technologically advanced nations to fill the void. This is not just a matter of missed upside potential from the new AI market. It's also about downside risk for every other sector that is economically important to a nation."

This is the 119th article in the series -- The China Chronicles. In its quest to become a formidable superpower, China under Xi Jinping has placed special significance on Artificial Intelligence (AI). Hence, while advancements in AI can contribute to China's economy and healthcare, among others, it can also strengthen the People's Liberation Army (PLA) by enabling it to engage in "intelligentised warfare" (智能化作战), defined by PLA strategists as "the operationalisation of artificial intelligence and its enabling technologies, such as cloud computing, big data analytics, quantum information and unmanned systems, for military applications." China's military leaders and strategists have astutely recognised that AI and related technologies--such as machine learning, human-machine teaming[i], neural networking, and autonomous systems (also referred to as "intelligentised weapons")[ii]--are key to gaining an edge in the next generation of warfare. At the same time, they are also anxious that other countries, mainly the US, may beat them in this realm and acquire the capability to overwhelm China's air defenses and attack their command-and-control systems.

As the 21st century rages on, success and failure of nations depends not only on their citizenry and governmental leadership, but heavily on the technological visions that countries embrace. If a nation takes the approach of sitting back or standing still as automation and Artificial Intelligence advance at ever increasing rates, that nation is destined to be left behind. However, if a country embraces AI and dedicates significant resources and top minds to ethical implementation, that country is destined to be a leader for decades to come. Recently Steve Mills, Chief AI Ethics Officer & Leader for Artificial Intelligence in the Public Sector, and Partner at Boston Consulting Group said quite eloquently "AI has become table stages for global national economic and technological competitiveness. This goes beyond nations capturing a piece of the large and rapidly growing AI market. AI is poised to transform nearly every industry. There is an imperative for nations to position themselves to integrate AI into these sectors. Particularly those sectors that are economically important to them. Failing to do so could erode their competitive position, creating opportunities for other, more technologically advanced nations to fill the void. This is not just a matter of missed upside potential from the new AI market. It's also about downside risk for every other sector that is economically important to a nation."

Artificial intelligence (AI) has evolved into a new era, and its rapid development will profoundly affect the everyday life of citizens worldwide. Countries around the world are establishing governmental strategies and initiatives to guide the development of AI. The Chinese government is using the development of AI as a major strategy to enhance national competitiveness and protect national security. In January 2016, the Chinese State Council released the 13th Five-year Plan on National Science and Technology Innovation, explicitly putting forward the guidance, general requirements, strategic mission and reform measures for Chinese science and technology innovation. Over the next five years, smart manufacturing will be one of the major missions of the "Science and Technology Innovation 2030 Project" and there will be a focus on the development of AI technology.

Today, New America and the Ethics and Governance of Artificial Intelligence Initiative (AI Initiative), a project of MIT's Media Lab and Harvard University's Berkman Klein Center, formed a new partnership to strengthen international understanding of Chinese artificial intelligence policies and developments. The AI Initiative will contribute $250,000 to support the work of New America's DigiChina project, a collaborative effort to translate, analyze, and contextualize Chinese digital policy developments. DigiChina, which published its first work in July 2017, emerged organically from a group of scholars and analysts on technology in China and has so far published translations and analysis by 12 scholars from 10 different organizations. In 2017, DigiChina published the first complete English-language translation of China's New Generation Artificial Intelligence Development Plan, which lays out ambitions for AI development and policy stretching to 2030. See below for links to other work so far on AI-related issues.

Artificial intelligence (AI), a subset of machine learning, has the potential to drastically impact a nation's national security in various ways. Coined as the next space race, the race for AI dominance is both intense and necessary for nations to remain primary in an evolving global environment. As technology develops so does the amount of virtual information and the ability to operate at optimal levels when taking advantage of this data. Furthermore, the proper use and implementation of AI can facilitate a nation in the achievement of information, economic, and military superiority – all ingredients to maintaining a prominent place on the global stage. According to Paul Scharre, "AI today is a very powerful technology. Many people compare it to a new industrial revolution in its capacity to change things. It is poised to change not only the way we think about productivity but also elements of national power."AI is not only the future for economic and commercial power, but also has various military applications with regard to national security for each and every aspiring global power.

The present global verve about artificial intelligence (AI) and machine learning technologies has resonated in China as much as anywhere on earth. With the State Council's issuance of the "New Generation Artificial Intelligence Development Plan" (新一代人工智能发展规划) on July 20, China's government set out an ambitious roadmap including targets through 2030. Meanwhile, in China's leading cities, flashy conferences on AI have become commonplace. It seems every mid-sized tech company wants to show off its self-driving car efforts, while numerous financial tech start-ups tout an AI-driven approach. Chatbot startups clog investors' date books, and Shanghai metro ads pitch AI-taught English language learning.

Artificial intelligence (AI) has become a new arena for engagement and competition between the United States and China. In July, China's State Council published the New Generation AI Development Plan (新一代人工智能发展规划) which declared, "AI has become a new focal point of international competition. AI is a strategic technology that will lead the future," articulating China's ambition to "lead the world" and become the "premier AI innovation center" by 2030 (State Council, July 20). Perhaps recognizing that a new era has begun, the U.S. National Security Strategy (NSS) published in mid-December announced, "To maintain our competitive advantage, the United States will prioritize emerging technologies critical to economic growth and security" (National Security Strategy, December 18). In particular, the NSS highlights that AI is advancing especially rapidly and could present growing risks to U.S. national security going forward, while characterizing China as a "strategic competitor" that unfairly seeks to "unfairly tap into [U.S.] innovation" through the theft of intellectual property and "cyber-enabled economic warfare." Concurrently, the U.S. and China are pursuing military applications of AI, recognizing its potential to transform the character of future conflict (State Council, July 20; Battlefield Singularity, November 28).