China is betting big on AI - and here’s why it’s going to pay off
China’s economy may expand 26 per cent by 2030, as artificial intelligence accelerates worldwide increases in productivity, PwC said.
China will see the greatest economic gains from artificial intelligence (AI) by 2030 as the technology accelerates global GDP growth by increasing productivity and boosting consumption, says PwC in a new research report released Tuesday.
Dubbed the fourth industrial revolution, AI technologies are expected to boost global GDP by a further 14 per cent by 2030 – the equivalent of an additional US$15.7 trillion – and China, as the world’s second largest economy, will see an estimated 26 per cent boost to GDP by that time, the PwC report said.
Launched at the World Economic Forum’s annual June meeting in northeast China’s Dalian city, often known as the Summer Davos, the report said labour productivity improvements would account for over half of the US$15.7 trillion in economic gains from AI between 2016 and 2030 – more than the current output of China and India combined – while increased consumer demand resulting from AI-enabled product enhancements will account for the rest.
“The analysis demonstrates how big a game changer AI is likely to be – transforming our lives as individuals, enterprises and as a society,” said Anand Rao, global leader of artificial intelligence at PwC.
The technology behind an array of advanced applications, from facial recognition to self-driving vehicles, is the centre of attention for almost every tech company in China as they bet big on AI to gain a competitive edge before it begins to have a more profound impact on people’s lives.
Since the start of this year, Chinese internet heavyweights Baidu, Tencent Holdings and Alibaba Group have been competing harder than ever to lure top AI talent from Silicon Valley in order to accelerate their own AI development. Alibaba owns the South China Morning Post.