AI 'Cold War' Emerges

The United States and China are intensifying their rivalry in artificial intelligence, leading to concerns about a potential 'AI Cold War'. This competition extends beyond algorithms and processors, encompassing control over digital infrastructure, global standards, and the future of the digital world. Both nations recognise AI's pivotal role in economic growth, military capabilities, and geopolitical influence.

Washington and Beijing are pursuing distinct strategies. The US aims for AI dominance through private sector innovation, infrastructure development, and the promotion of its tech stack, while also restricting access to advanced technologies for its rivals. China emphasises collaboration, inclusivity, and international dialogue on AI standards, seeking to embed its technology in emerging economies' digital infrastructure. This divergence raises the prospect of fragmented AI governance and pressure on countries to align with either the US or China.

Restrictions imposed by the US have spurred domestic innovation in China's semiconductor industry. China is also fostering national champions like Tencent and Deep Robotics, which are developing AI and robotics technologies to rival US counterparts. The AI competition is intensifying, mirroring the dynamics of the Cold War, with both countries vying for global leadership in this critical technology.