Failing to address national security risks is not just a vulnerability for individual organizations- it is a systemic issue. The interconnectedness of the global economy means that one compromised node can have cascading effects.
Why industry’ s role is critical
The U. S. government can only do so much. Unlike in China, where industry operates at the direction of the state, America’ s strength lies in its innovative private sector. This dynamic is a double-edged sword. On the one hand, it enables the kind of creativity and agility that leads to breakthroughs. On the other, it creates vulnerabilities when companies underestimate the strategic dimensions of their operations.
Consider the intersection of AI and supply chain security. Many organizations rely on foreign manufactured hardware— GPUs, sensors, or even basic semiconductors— that underpin their AI deployments. If these components originate from adversarial nations, they could carry backdoors or vulnerabilities that compromise not only the integrity of your systems but the broader security of critical sectors. The semiconductor shortage of recent years underscores how fragile these supply chains can be. Now, overlay that
fragility with the risks of malicious interference, and the stakes become even clearer.
Washington recognizes these challenges and has begun acting accordingly. Export controls on advanced semiconductors, initiatives to reshore critical industries, and policies to strengthen public-private partnerships all point to a shared objective: safeguarding America’ s AI future. But these measures cannot succeed without active industry participation. The private sector is not a bystander in this fight; it is the front line.
For businesses, this is not just about avoiding sanctions or regulatory penalties. It is about competitiveness. Companies that demonstrate robust security practices and alignment with national priorities will find themselves at an advantage— whether in securing federal contracts, attracting global customers, or mitigating reputational risk in an era of heightened geopolitical scrutiny. Conversely, those that fail to adapt will face an uphill battle, as both public and private stakeholders increasingly demand accountability.
Failing to address national security risks is not just a vulnerability for individual organizations- it is a systemic issue. The interconnectedness of the global economy means that one compromised node can have cascading effects.
The Kyndryl Institute Journal 131