The emergence of artificial intelligence as a strategic technology has fundamentally transformed the resources, tools, and mechanisms of soft power. Utilizing an integrated theoretical framework—encompassing Nye’s soft power, hybrid power, Castells’ network society, digital diplomacy, cyber power, the geopolitics of technology, geoeconomics, and global technology governance—alongside directed qualitative content analysis and a comparative case study, this article examines the role of artificial intelligence in redefining the soft power of the People’s Republic of China and the United States. The findings indicate that the United States, through a market-driven and innovation-oriented model (characterized by approximately $109.1 billion in private investment in 2024 and the development of 40 significant models), reinforces its soft power based on technological appeal, prestige, and open values. In contrast, China, employing a state-led and infrastructure-focused model, relies on utility, accessibility, and influence within the Global South. Through capacity building, R&D investment, digital diplomacy, governance, cyber power, and geoeconomics, artificial intelligence has evolved into a primary source of hybrid soft power, shifting the competition between the two nations into the technological-normative arena. This transformation complements classical soft power theory and introduces the concept of "technological soft power." The implications for international relations theory and great-power competition are discussed.