This paper addresses the amazing capabilities of AI, especially its foundational models, but also the confusion and concerns that they bring. It explains the co-evolution of technology and society, focusing on the functions, risks, and supply chains of foundational models within the broader economic system. It presents empirical insights that secure transparency through model-level assessments and organization-level metrics, and discusses a shift toward evidence-based AI policymaking based on an understanding of the social impacts of foundational models. Ultimately, it lays the foundation for building a scientific foundation and research-policy interface for better AI governance, thereby laying the groundwork for achieving better social outcomes in the AI era.