Abstract: Artificial Intelligence (AI) is no longer just a technological advancement—it is a geopolitical battleground shaping the future of global power, economic dominance, and societal values. The United States and China have adopted starkly different approaches to AI governance, with the U.S. shifting from Biden’s (2023) focus on AI safety and ethics to Trump’s (2025) deregulated, industry-first AI model, while China continues to develop state-controlled, cost-efficient AI systems like DeepSeek R1.

For Australia and New Zealand, these developments present a critical challenge: how to harness AI for innovation while mitigating risks to privacy, security, and national sovereignty. This report explores the contrasting AI policies of the U.S. and China, the strategic risks posed by deregulation, and what Australia and New Zealand must consider in crafting their own AI governance frameworks.