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Manoj Kewalramani 12/10/2018 Manoj Kewalramani 12/10/2018

China’s big plan for AI domination is dazzling the world, but it has dangers built in. Here’s what India needs to watch out for.

China has been one of the early movers in the AI space, and evaluating its approach to AI development can help identify important lessons and pitfalls that Indian policy makers and entrepreneurs must keep in mind.

In June, Niti Aayog published a discussion paper arguing that India has a significant stake in the artificial intelligence (AI) revolution and therefore needs to evolve a national AI strategy. The document examined policies and strategies issued by a number of countries that could inform the Indian approach.

China has been one of the early movers in the AI space, and evaluating its approach towards AI development can help identify important lessons for Indian policymakers and entrepreneurs.

In July 2017, China’s State Council published its AI plan, outlining the goal of becoming the world’s primary AI innovation centre by 2030. This is a comprehensive vision document, unlike “strategies” or “policies” put out by other key global players.

Breaking down China’s AI ambitions

The Social Credit System is about much more than surveillance and loyalty, as popularly understood. Nudging persons to adopt desirable behaviour and enhancing social control are part of the story. But there are larger drivers of this policy. It is fundamentally linked to the Chinese economy and its transformation to being more market driven.

China unveiled a plan to develop the country into the world’s primary innovation centre for artificial intelligence in 2017. It identified AI as a strategic industry, crucial for enhancing economic development, national security, and governance.The Chinese government’s command innovation approach towards AI development is crafting a political economy that tolerates sub-optimal and even wasteful outcomes in the quest for expanding the scale of the industry. Consequently, the industry is likely to be plagued by concerns about overinvestment, overcapacity, quality of products, and global competitiveness.In addition, increasing friction over trade with other states and President Xi Jinping’s turn towards techno-nationalism along with tightening political control could further undermine China’s AI industry. Before we dive into the challenges, here’s some background.Read more here>