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Item “THE AI ARMS RACE IN INDO-PACIFIC REGION: EXAMINING US-CHINA RIVALRY AND ITS IMPLICATIONS FOR MILITARY AND ECONOMIC SECURITY(UMT.Lahore, 2025) AHMAD AZIZThe increasing artificial intelligence (AI) rivalry between China and the United States has developed into a complete “AI arms race” that profoundly affects worldwide security as well as economic power positions and political stability across the globe. The research evaluates the dual use of AI by America and China to dominate military operations and safeguard their economies and expand their strategic positions while investigating their impact on worldwide diplomatic relations. A research application of Offensive Realism and Security Dilemma models demonstrates the effects of AI competition which lead to worldwide international tensions while triggering military forces to rise and modify power relationships between nations