The report also indicates that China is unlikely to benefit as much from AI due to its strict tech regulations, which could hinder the fast spread of AI. This could result in the US retaining its position as the world's largest economy. The report also suggests that the AI revolution could further slow down China's economic growth, which has already been affected by deflation, surging youth unemployment, and a property-market crisis.
Key takeaways:
- Artificial intelligence (AI) is set to give a massive boost to the US economy, according to a report by Capital Economics.
- The US is the best positioned to benefit from AI due to high levels of investment and top-quality universities and colleges.
- China is unlikely to benefit as much due to its strict tech regulation, which will hinder the spread of AI.
- The AI revolution is another reason to think that expectations of China's economy surpassing the US will have to be further reined back.