China sees artificial intelligence as a $59 billion economic boost

China aims to make the artificial intelligence industry a “new, important” driver of economic expansion by 2020, according to a development plan issued by the State Council.

Policymakers want to be global leaders, with the AI industry generating more than $59 billion of output per year by 2025. Key development areas include AI software and hardware, intelligent robotics and vehicles, virtual reality and augmented reality, the Council said last week.

“Artificial intelligence has become the new focus of international competition,” the report said. “We must take the initiative to firmly grasp the next stage of AI development to create a new competitive advantage, open the development of new industries and improve the protection of national security.”

The plan highlights China’s ambition to become a world power backed by its technology business giants, research centers and military.

E“The positive economic ripples could be pretty substantial,” said Kevin Lau, a senior economist at Standard Chartered Bank in Hong Kong. “The simple fact that China is embracing AI and having explicit targets for its development over the next

Edecade is certainly positive for the continued upgrading of the manufacturing sector and overall economic transformation.”

The Council also called businesses, universities and the armed forces to work more closely in developing the technology.