Considered as the 4^th Industrial Revolution, Artificial Intelligence (AI) has become a reality in today’s world, especially in the military. Experts and academicians have emphasized the importance of AI for a long time. Furthermore, world leaders, including Obama, Trump, Xi, and Putin, have all made important statements that bring to the fore the significance of AI which can be summarized with what Putin stated on September 2017: whoever becomes the leader in AI, will rule the world. This analysis provides a short introduction on what AI is, how it has evolved until today and how it will change the nature of warfare. It then assesses why states invest in AI to later turn to the case of the U.S. and China. For both states, the main official documents and statements are analyzed, the bureaucratic structures that work on AI are presented and finally examples of how the U.S. and China are applying AI in the military are provided. The conclusion briefly comments on how the strategies of China and the U.S. differ followed by some recommendation on what states like Turkey should do in the near future.