Collaboration between government and private sector is crucial for driving tech innovation and improving security.

• According to former U.S. Defense Secretary Leon Panetta, the U.S. has fallen behind other countries in investing in cutting-edge technologies like artificial intelligence and quantum computing.
• At the CNBC Technology Executive Council Summit, Panetta emphasized the importance of collaboration between government and the private sector in addressing the U.S.'s growing cyber security risks, including ransomware attacks.
• He emphasized the importance of forming alliances to enhance technology, rather than targeting the dismantling of large tech corporations.

According to Leon Panetta, former U.S. Defense Secretary and a speaker at CNBC’s Technology Executive Council Summit in New York, the U.S. is falling behind other countries in investing in new technologies such as artificial intelligence and quantum computing, which is affecting how the nation is perceived by other countries, including China.

The United States and China are facing intense competition in various fields, with tensions continuing to rise, according to Panetta. While China is investing heavily in technology to expand its global influence, the U.S. has been less competitive recently.

Panetta stated that China is prioritizing significant investments in AI, quantum, robotics, and cyber technology with the aim of surpassing the United States and other nations in these fields.

The US is working to strengthen its position in the technology industry through initiatives such as the USICA, which would allocate $110 billion for research over five years. This includes investments in basic and advanced research, commercialization, and education and training programs in various fields, totaling $100 billion.

The need for bipartisan support

The goal of the act is to counter China and address U.S. fears of an "AI Cold War." Nevertheless, Congress's partisan division, which Panetta views as the greatest danger to national security, may hinder the advancement of technological innovation.

"Although I've witnessed Republicans and Democrats collaborate on significant national challenges in Washington, I believe it will be challenging to enact bipartisan legislation due to the current political climate," Panetta stated.

Both sides must work together, listen to each other, and find consensus in order for national security and economic issues to be resolved, according to Panetta. This approach is essential to the functioning of democracy, he emphasized.

The private sector plays a crucial role in the nation's technological advancement, as stated by Panetta, who is the founder of the Panetta Institute for Public Policy and a board member of a tech company located near Silicon Valley.

I have witnessed the innovative, creative, and cutting-edge technology development capabilities of these companies," Panetta stated. "To enhance our technological prowess, we must establish a partnership between the government and private sector.

The U.S. is facing significant cyber security risks such as ransomware, and the need for government and the private sector to work together is especially vital, says Panetta. The federal government needs to partner with private sector businesses to foster advances in information security.

Years ago, Panetta warned of the threat of a "cyber Pearl Harbor," and now, with ransomware attacks like the one against Colonial Pipeline in May 2021, this is becoming a reality. A significant computer virus could shut down the country if it launched against power grid systems, transportation systems, finance systems, and government systems.

To effectively combat cyber threats from China, Russia, and other countries, the U.S. must focus on developing deterrents and demonstrating its growing strength in response to cyber attacks.

To enhance technology, it is crucial to form alliances, as stated by Panetta. "Breaking up big tech corporations may seem like a solution, but it will only harm our competitiveness in the global market," he emphasized.

If government and technology companies can collaborate on approaches that benefit both sides, America can show a united front to the world, which is crucial for advancing technology into the future, according to Panetta. This is necessary for the United States to maintain its position as a global leader.