Education is one area where GenAI is having a huge impact. Teachers work with text and language all day long. They have too much to do and not enough time to do it. Ideally, for example, they should "differentiate" for EACH and EVERY student. Of course that almost never happens, but second best is to differentiate for specific groups - students with IEPs (special ed), English Learners, maybe advanced / gifted.
More tech aware teachers are now using ChatGPT and friends to help them do this. They are (usually) subject area experts, so they can quickly read through a generated or modified text and fix or remove errors - hallucinations are less (ime) of an issue in this situation. Now, instead of one reading that only a few students can actually understand, they have three at different levels, each with their own DOK questions.
People have started saying "AI won't replace teachers. Teachers who use AI will replace teachers who don't."
Of course, it will be interesting to see what happens when VC funding dries up, and the AI companies can't afford to lose money on every single interaction. Like with everything else in USA education, better off districts may be able to afford AI, and less-well-off (aka black / brown / poor) districts may not be able to.
I don't disagree with you, especially in the short term, but Noah Smith (economist at https://www.noahpinion.blog/) does have some eye-opening opinions on the industrial might of China, and what that could mean for USA influence if China wanted to push things. (All this assumes no one uses nukes, of course.)
I'm going from memory, so errors are probably mine, not Mr. Smith's. But, basically, wrt manufacturing, China is already where the USA was during / near the end of WWII. Even if we had the tech and raw materials, the USA would not be able to up with China's factories if it came to war. They could basically just keep throwing drones and bombs at the USA until we literally ran out of anything to defend ourselves with, much less fight back with. Even if much of the rest of the world's factories were on our side.
CHIPS act is one way the Biden admin was trying to restart strategic manufacturing in the USA. We'll see how that goes.