AI Policy & Strategy in Industry 5.0: Frontier Security, Compute Policy, and International Strategy for Global Leaders (Augmented with Perplexity AI)

Leke
Jul 28, 2025
3 min read

By Leke Abaniwonda, Industry 5.0 Innovation Specialist

For Fortune 100 executives, government leaders, and global C-suite stakeholders within world powers such as the United States, Canada, China, and the G8 nations, crafting and executing an effective AI policy and strategy is no longer optional—it is a strategic imperative in the race for economic dominance and geopolitical influence.

Drawing from the latest insights at the Institute for AI Policy & Strategy (IAPS) and global innovation leadership trends, this article explores three cornerstone pillars of AI policy: frontier security, compute policy, and international strategy—all within the vision of Industry 5.0’s human-centric, sustainable innovation.

AI Policy and Strategy: A Critical Business and Geopolitical Mandate

AI’s transformative impact has evolved from pilot projects to a foundational pillar of business transformation and national power. As noted by the Institute for AI Policy & Strategy, “Harnessing AI’s full potential requires integrated approaches balancing innovation, security, governance, and collaboration” (IAPS Research).

Executives must champion bold enterprise-wide AI strategies that move beyond experimentation to operationalization at scale—with dedicated teams, compliance frameworks, and responsible AI governance embedded into organizational DNA. Transparency, workforce trust, and risk mitigation are key to sustainable AI deployment.

Frontier Security: Safeguarding AI Systems and Data Sovereignty

The rapid integration of AI into critical infrastructures and supply chains demands robust frontier security measures. Cybersecurity for AI systems and data integrity is paramount as AI-driven attack vectors evolve dynamically. The IAPS stresses the urgency to “fortify AI assets while fostering innovation,” particularly as strategic technologies intersect with defense and critical economic sectors.

For global leaders, evolving security policies must ensure resilience against threats without imposing innovation-stifling restrictions, strengthening public-private partnerships dedicated to securing AI ecosystems.

Compute Policy: Securing Access to Strategic AI Infrastructure

At the heart of AI capability lies compute infrastructure—ranging from advanced high-performance computing to quantum readiness and energy-efficient AI hardware. Superpowers are intensifying investments to maintain sovereign access to these technologies.

Policies should encourage collaborations that accelerate domestic compute infrastructure and manufacturing while mitigating dependencies, especially in light of China’s government-supported innovation ecosystem. The delicate balance involves “protecting intellectual property and national security while promoting innovation” (IAPS Strategic Briefs).

International Strategy: Navigating Competition and Collaboration

AI’s global nature transcends borders, positioning technology supremacy as a core element of geopolitical power. The US, Canada, China, and G8 nations must skillfully balance competition with cooperation.

International engagement through multi-stakeholder forums to establish shared AI ethics and standards is crucial, while addressing transnational risks such as surveillance abuses and misinformation. Executives should anticipate and navigate complex regulatory environments shaped by geopolitical dynamics to sustain market access.

Embracing Industry 5.0: Human-Centric and Sustainable Innovation

Industry 5.0 re-centers AI innovation around human creativity, societal values, and sustainability. Integrating AI with ESG principles (environmental, social, and governance) not only drives long-term value but also defines competitive differentiation.

This approach aligns AI development with ethical frameworks and environmental stewardship—imperatives increasingly demanded by stakeholders worldwide.

Key Action Steps for Leaders

Develop enterprise-wide AI policies with clear governance, ethical guidelines, and security frameworks.
Invest strategically in frontier security to protect critical AI systems without hindering innovation.
Secure sovereign compute infrastructure via public-private partnerships to reduce foreign technology dependence.
Engage proactively in international AI policy dialogues to shape standards and collaborate on mitigating transnational risks.
Adopt Industry 5.0 principles to design AI systems that are trustworthy, human-centered, and sustainable.

In a world where AI drives economic dominance and national security, leaders across Fortune 100 companies and global governments must act decisively—embedding AI policy and strategy that safeguard interests while advancing innovation and global collaboration. As observed by IAPS, “The future belongs to those who thoughtfully integrate AI’s promise with frontier security, strategic compute policy, and international cooperation” (IAPS Policy Recommendations).