China’s artificial intelligence sector in danger of becoming a ‘bubble’, experts warn
Artificial intelligence (AI) is on the verge of becoming a ‘bubble’ in China as a large influx of money and talent heat the market, analysts and experts warn.
“For the job market in China’s AI sector, I see a bubble already exists now. Some practitioners in the AI industry and are paid salaries that are unfairly high,” said Wang Xiaochuan, chief executive officer of Chinese internet company Sogou. “Investors expect too high a return on their investments, and the valuations of China’s AI enterprises are much more expensive than those in the US.”
In terms of investment in AI enterprises, China was in second place in 2016 on US$2.6 billion, followed by the UK on US$800 million, according to data from Chinese think tank WuZhen Institute. The US topped the list on US$17.9 billion.
“The amount being invested in AI in Asia is growing by the day,” said KPMG partner Egidio Zarrella. “2017 will be the year investors will look at AI and say, ‘if you’re not investing in it, you’re missing the boat’.”
Investors expect too high a return on their investments, and the valuations of China’s AI enterprises are much more expensive than those in the US
The vast amounts of capital and talent flooding into AI industries in China is not without good reason. Artificial intelligence is poised to transform almost every aspect of people’s lives, even though it is currently somewhat limited in scope, generally working on repetitive tasks based on big data and complex calculation.
“From an economic standpoint, I believe AI will replace human beings, including managerial and technical jobs, as well as manual labour jobs. It is almost unavoidable,” said Ben Goertzel, chief scientist at Hanson Robotics, a company that claims it is developing the worlds’ most human-like robots.