The new generation of generative AI(AI) plays a critical role in optimizing the national innovation system in modern society.The reform of generative AI is gradually transforming innovative models and various industries, bringing chances as well as challenges to human life.This paper aims to figure out how generative AI becomes one of the key factors in the national innovation system and analyze the dual-sided impact of its applications.Through analyzing how generative AI facilitates the optimization of national innovation systems in Chinese society, it also addresses the potential risks posed by the technological anxiety and ideological controversies of generative AI.#br#In order to promote the deep optimization of the national innovation system, the new generation of AI is expected to serve as an efficiency catalyst to promote the deep optimization of the national innovation system in three aspects: content production, industrial integration, and industrial transformation.With a legal mindset, it is conducive to reducing the application risks to an acceptable level by examining the economic, social, and legal risks related to the new generation of generative AI, including market monopolies and the labor market impact, data security issues and algorithm abuse as well as the disputes over the patentability of innovative achievements and copyright ownership.Therefore, the opportunity to advance technological innovation capabilities through generative AI should be valued and the potential crises it may lead to should not be underestimated.Currently, some generative AI products face academic entry barriers, regional and national divides, and are even not welcomed by certain regions, companies, and schools.However, direct technology bans cannot solve the fundamental problems.#br#To solve current issues and future risks related to a plethora of generative AI products and applications, this paper adopts the comparative research method.With reference to systems theory to examine the basic framework of the national innovation system, the generative AI industry should be strengthened from the perspectives of industrial development, digital economy, technological innovation, intellectual property protection, and talent support to mitigate the potential risks of generative AI and facilitate the deep optimization of the national innovation system.Considering the top-level design adjustments of the 20th National Congress on the national innovation system construction since 2022, this paper discusses how the next generation of generative AI can help enhance the efficiency of the national innovation system from four aspects: resource coordination and outcome utilization system; algorithm self-regulation and security supervision system; outcome transformation and innovation recognition system; talent cultivation and talent introduction system.Enhancing the coordination of domestic and foreign AI innovation resources contributes to the universalization of ethical standards in generative AI and rapidly corrects the defects of generative AI.Meanwhile, the extensive market application of generative AI technology achievements can promote the digital transformation and intelligent upgrade of comprehensive industries.Developing a security assurance system centered on algorithmic supervision for conciseness shows sustained benefits to the AI technology ecosystem, and utilizing generative AI technology by itself can be seen as a means of regulating and governing its own technical norms and risks, which is conducive to realizing the reflexivity and normativity of generative AI.The improvement of the system for transforming AI technological innovations and the refinement of the standards for recognizing AI technological innovation achievements could be beneficial to evaluate the innovativeness, practicality, and feasibility of technological achievements, which also promotes the sustainable development of AI technological innovation.By improving the guarantee system centered on algorithm regulation and utilizing generative AI from two aspects, the talent team of generative AI could be strengthened with the improvement of the talent training system.On this account, it is necessary to strengthen the self-cultivation and teaching capability of the next generation of generative AI talents, and encourage international talent communication and talent introduction policies for the next generation of generative AI.#br#