From my perspective, AI seems to have more draconian potential than liberating potential. I get that it's a technology we should pursue, but it's got loads of ethical risks that China will pay no mind to. Will that recklessness and wanton disregard for human rights (including the right to privacy) lead to Chinese dominance in AI tech? Maybe.
Will we be at a strategic disadvantage without draconian AI tech? I'm not so sure.