Amidst the backdrop of a global pivot towards digitization, the economic landscape of China has hit a bit of a hurdle. Data from the renowned technology consulting firm, Accenture, suggests that traditional capital investment and labor resources, long the twin pillars of China’s prosperity, are struggling to fuel the requisite rates of economic growth. The entrancing dragon dance of China’s robust economy has, of late, lost some of its hypnotic sway. Its growth rate has slowed markedly as productivity exhibits signs of plateauing. A beacon of hope appears to present itself in the form of Artificial Intelligence (AI). Recent analyses project AI’s potential to bolster China’s economic growth rate by up to 1.6% by 2035.

Reflecting this trend is an ambitious development plan issued by the State Council of China. The plan underlines AI as a new focal point to galvanize the local economy by 2020. The council states, “Artificial Intelligence has morphed into the hotbed of international competition. We must be proactive in embracing the evolving landscape of AI development to gain a unique competitive edge, unlock new growth potentials for emerging industries, and bolster national security.”

Enunciating the nation’s aspiration to emerge as a global powerhouse in AI, China is intensifying its focus on elements such as AI software, intelligent robotics and vehicles, in addition to virtual reality and augmented reality technologies. With these concerted efforts, the AI industry is expected to spur over 400 billion yuan ($59 billion) of output annually by 2025.

If all the elements fall into place as envisioned, PwC forecast in June that AI may contribute as much as $15.7 trillion in annual output by 2030. Interestingly, this figure surpasses the combined output of China and India in its entirety.

Reiterating this positive sentiment, Senior Economist at Standard Chartered Bank in Hong Kong, Kelvin Lay, anticipates substantial economic repercussions. “The concrete fact that China is whole-heartedly embracing AI and has defined explicit targets for its development over the coming decade is a boon for the continuous evolution of the manufacturing sector and the overarching economic transformation.”

Reinforcing this viewpoint, The People’s Daily, a newspaper owned by the Communist Party of China, reported that “AI will hold profound implications for society and the international community”, an opinion echoed by Gao Qiqi, Professor at the East China University of Political Science and Law.

Going beyond the short-term goal of economic rejuvenation, the Chinese State Council is advocating for revolutionary interdisciplinary research to weave in AI with diverse fields like cognitive science, psychology, mathematics, and economics. This innovative move will involve training a new generation of AI professionals and scientists to conquer uncharted territories in AI advancement.