China’s AI dream is well on its way to becoming a reality

All the major economies in the world understand the strategic importance of artificial intelligence in empowering and transforming economic growth in the coming decades. China is no exception. In July 2017, China’s State Council laid out an ambitious AI strategic plan to create a domestic 1 trillion yuan (US$147.80 billion) AI industry and make China the world’s leading AI innovation centre by 2030. Although too early to say if China will succeed, all the factors seem to be in China’s favour, such as market readiness, start-up money, talent, and supportive government policies and budget.

Over the past decade, China’s vast population has shown great eagerness and willingness to embrace various new technologies. Take the rapid growth of China’s smartphone industry as an example: over the past 10 years, it has grown from a single-digit penetration rate to over 50 per cent in 2017. 

The growth in social media use is also just as incredible. WeChat’s monthly active users went from 100 million in 2012 to over 1 billion in early 2018. China is also a leader in the adoption of digital payment. In urban areas, China has practically gone cashless. In 2016, the US had US$112 billion worth of mobile payments while, in China, mobile payments totalled US$9 trillion, according to a report by Forrester Research.