Artificial intelligence is recognized globally as one of the key drivers of economic transformation, industrial innovation, and data-driven governance. This technology has become one of the most important tools in shaping a new pattern of power in the military, economic, and social spheres. This article aims to elucidate and analyze this AI-driven power paradigm within the context of the intensifying rivalry between the United States and China. The central research question addresses the specific approaches and strategies each of these major powers employs in leveraging artificial intelligence. This research was conducted using a comparative method and relying on library and documentary data, and its theoretical framework is based on the concept of "smart power." The findings indicate that the fierce competition between the two nations in the realm of AI is primarily focused on the military and economic spheres. The soft dimension focuses on seeking leadership in the international system in order to gain greater legitimacy in the coming decades. In the United States, the hard dimension of AI focuses on strengthening trade and the economy, developing military applications, and imposing technological sanctions on China in the chip and semiconductor industries. The soft dimension seeks to highlight China’s weak leadership and limit its capacity to gain international standing. In contrast, in China, the hard dimension of AI focuses on urban planning, developing smart cities, It focuses on improving medical services and enhancing the capabilities of the People's Liberation Army. In the "soft" domain, efforts are directed toward networking to attract foreign investment in the field of artificial intelligence.