China and US set for arms race in AI that will lead to respective spheres of dominance, says expert

China and the United States are locked in a new arms race for dominance in artificial intelligence, a contest that may lead to geographical spheres of dominance, according to leading mainland venture capitalist Lee Kai-fu.

Underscoring the importance of the technology, President Xi Jinping in October said China must control the use of artificial intelligence and called on party members of the National Congress to apply the technology to propel the country’s growth.

China has lagged behind the US in the invention of disruptive technologies, according to Lee, co-founder and chairman of Sinovation Ventures.

Meanwhile, the US still commands a lead in research, thanks to the success of its universities in attracting global scientific talent, a clear advantage which is disproportionate to its own population size, said Lee, who previously held the post of president at Google China.

“[However] when it comes to implementing already-known technologies, and monetising them, China would lead in the global race in AI, backed by its virtual cycle of having a large market, a large pool of data, which helps build better AI technology and fosters profitability for entrepreneurs as they in turn reinvest this money to build more products,” said Lee.

Lee, the author of the 2018 book AI superpowers: China, Silicon Valley, and the new world order, said his vision is that these two winners in AI will eventually morph into the respective leaders in a parallel manner.

China will command a nexus that includes half of the world’s population, comprising Southeast Asia, Africa, and potentially India and the Middle East.