China wants artificial intelligence to become a new engine of growth, powering everything from factory upgrades to scientific discovery. But outside the country’s technology hubs, the economic benefits promised by AI may be harder to realise.
Recent studies suggest that AI will widen regional divides. Big cities with deep pools of talent, capital and innovative firms are best placed to adopt the technology, while smaller cities and rural areas may struggle to keep up.
“Inevitably, we will see that the gains are not equal,” said Lynn Song, chief economist for Greater China at ING. “Those who are most directly connected to the core parts of China’s AI supply chain will benefit more.”
The capital, Shanghai and Shenzhen are expected to be clear beneficiaries. These cities already possess large technology clusters, strong universities and local governments with the resources to back new industries, according to Liam Sides, an associate director at Oxford Economics.
China’s leaders have made clear that they want AI to become a new economic driver across the economy.