Abstract

In March 2016, the AlphaGo computer program defeated Lee Sedol, a nine-dan professional master, at the game of Go and became an instant international sensation. This moment confirmed to the world that it is indeed possible for machines to think like humans—and even to exceed their capabilities. This breakthrough in the development of artificial intelligence (AI) has bolstered optimism among those who believe in its power to significantly boost productivity. But it has also provoked anxiety regarding AI’s capacity to automate jobs and the prospect of unleashing machines we cannot control. One thing is undeniable: AI has enormous potential and will reshape societies around the globe.

With the demographic dividend that has fueled its economic rise fast receding, China urgently needs to find another growth engine. Using AI-enabled automation to boost productivity can be part of the solution that helps China meet its targets for economic growth.

In this context, it is important to examine several aspects of AI’s development and its implications for China. This paper will cover the following topics:
■ Section 1 provides a brief overview of AI’s development, its current capabilities, and its future potential.
■ Section 2 examines China’s position in AI development and then lays out some of the challenges and economic, social, and geopolitical implications posed by AI.
■ Section 3 outlines five strategic priorities for China in the areas of industrial, economic, education, social and international policy framework.