AI Race Stumbles on Looming Skills Gap, New Analysis Warns
WASHINGTON D.C. - November 12, 2025 – The United States risks falling further behind in the global artificial intelligence competition not due to a lack of funding, but a critical shortage of skilled labor, according to a new analysis from the Center for Strategic and International Studies (CSIS). while investment and computational power dominate the AI discourse,the report highlights the frequently enough-overlooked need for a robust workforce to build,maintain,and operate the increasingly complex infrastructure underpinning AI progress – including data centers and advanced manufacturing facilities.
The warning comes as China accelerates its AI infrastructure development, recently opening the world’s first underwater data center and showcasing advanced automated manufacturing capabilities that have left American executives “shaken,” according to a recent Telegraph report. These “dark factories,” operating with minimal human presence to conserve energy, exemplify the level of automation the U.S. is striving to match.
The CSIS analysis emphasizes that technological advancement doesn’t necessitate job displacement, but rather can create and correlate to well-paid, durable middle-class jobs. Generative AI, the report states, will require ample investment, and human capital is a fundamental element of this new industrial revolution, with automation ultimately spurring greater labor demand in a positive feedback loop.
Though, the current public conversation largely overlooks this critical component, costing valuable time in the race for AI domination. The report underscores the need to prioritize workforce development alongside investments in computing power and data centers to ensure the U.S. can compete effectively and capitalize on the economic opportunities presented by AI.