Following reports from Accenture technology, China has experienced a drastic decline in the ability to increase in capital investment and in labor to propel economic progress. Accordingly, capital investment and labor are no longer able to sustain the abundance of prosperity previously enjoyed. In retrospect, the economy has slowed significantly and productivity has suffered a stunted growth. A recent analysis revealed that AI (Artificial Intelligence) has the prospect to revive China’s economic growth rate up to 1.6% by 2035.
In alliance with this report, a recent development plan issued by the state council in China reveals that the country will make AI a new focus to boost its economic by 2020. The report said:
“Artificial intelligence has become the new focus of international competition. We must take the initiative to firmly grasp the next stage of AI development to create a new competitive advantage, open the new development of new industries and improve the protection of national security.”
To highlight China’s ambition to become world power, the country is placing keen attention on AI software and hardware, intelligent robotics and vehicles, including virtual reality and augmented reality, the AI industry is expected to generate more than 400b yuan ($59b) of output on a yearly basis, by 2025.
With all these in place, as much as $15.7 trillion will be contributed as output by 2030, as revealed by PwC in June. This figure is currently more than the output of China and India combined.
Kelvin Lay, a senior economist at Standard Chartered Bank in Hong Kong posits that “the positive economic ripples could be pretty substantial”. He said further, “The simple fact that China is embracing AI and having explicit targets for its development over the next decade is certainly positive for the continued upgrading of the manufacturing sector and overall economic transformation”.
The People’s Daily owned by the Communist Party in China also reported that “AI will have a significant influence on society and the international community”. This opinion was posited by East China University of Political Science and Law Professor, Gao Qiqi.
Aside seeking means to boost the country’s economy, the state council has requested for interdisciplinary research to connect AI with other subjects such as cognitive science, psychology mathematics and economics. This will involve the training of more AI professionals and scientists to achieve this feat.