The Fox News AI newsletter highlights concerns over the U.S. losing its lead in artificial intelligence to China, as noted by OpenAI's Chris Lehane. It discusses the role of AI in national security amidst global unrest, particularly in the Middle East, according to Booz Allen Hamilton's CEO. Additionally, it mentions a scam involving AI impersonating Brad Pitt, and features innovative AI-driven sustainable housing solutions developed by AC Future and Pininfarina.