Pragmatism Vs. Innovation: Comparing China's And The US's Approaches To AI Development

China's approach to artificial intelligence (AI) development is distinctly characterised by pragmatism and a focus on practical applications. This stands in contrast to the more ambitious and groundbreaking innovations pursued in the United States. China's pragmatic strategy is shaped by several key factors, including technological constraints, data access limitations, ecosystem priorities, focus on execution and application, practical AI applications, and regulatory and geopolitical factors.

Technological Constraints

One of the significant challenges China faces in AI development is the lack of access to advanced US chips. These chips are essential for training large AI models, and their absence limits China's compute power. While companies like OpenAI in the US are expanding the size of their models, with GPT-4 reportedly trained on over 1 trillion parameters, Chinese companies have to focus on efficiency. For example, Hangzhou-based DeepSeek released DeepSeek-V2, an open-source large language model using only 21 billion active parameters. This emphasis on efficiency over scale is a direct result of the technological constraints imposed by the lack of advanced hardware.

Data Access Limitations

China's data protection standards, as outlined in the Personal Information Protection Law introduced in 2021, impose strict regulations similar to Europe's General Data Protection Regulation (GDPR). These regulations require companies to protect individual and corporate data, limiting the amount of data available for training AI models. As a result, Chinese companies are incentivised to develop AI services built on smaller language models rather than training them on vast amounts of internet data. While these models may lack the brute strength of their larger counterparts, they are more affordable to create and run.

Ecosystem Priorities

China's tech ecosystem prioritises research that can be quickly turned into products. Funding for long-term, speculative research, such as artificial general intelligence (AGI), is limited. This pragmatic approach means that while the US may lead in groundbreaking innovations, China excels in finding product-market fit, scaling, and making applications affordable. This is evident in the high volume of AI patent filings from China, with over 38,000 patents between 2014 and 2023 compared to the US's 6,276 in the same period.

Focus on Execution and Application

China's strength lies in its ability to execute and apply AI technologies effectively. The country's tech companies focus on developing practical applications that can be quickly deployed in the market. For instance, in the field of electric vehicles (EVs), China has rapidly accelerated production. It took China 26 years to produce its first 10 million EVs, but only 17 months to produce the next 10 million. It is expected that roughly half of the cars sold in China this year will be smart cars, equipped with advanced AI technologies.

Practical AI Applications

One of the key areas where China's pragmatic approach to AI is evident is in the development of autonomous vehicles. Baidu, a leading Chinese tech company, is conducting the world's largest autonomous vehicle experiment, deploying 500 driverless taxis in Wuhan. This focus on practical applications ensures that AI technologies are integrated into everyday life, making them accessible and affordable to the general public. While these technologies may not be as advanced as those developed in the US, they are "good enough" to meet the needs of consumers and drive widespread adoption.

Regulatory and Geopolitical Factors

China's tech sector is often viewed as a monolithic, state-driven entity. However, the reality is more nuanced. Regulations and international restrictions have created a landscape where China has advantages in some areas while lagging in others. These regulatory and geopolitical factors shape China's approach to AI development, forcing the country to adapt and innovate within the constraints imposed by the global tech ecosystem.

China's pragmatic approach to AI development, characterised by a focus on efficiency, practical applications, and execution, stands in contrast to the ambitious, groundbreaking innovations pursued in the US. Both countries have valuable contributions to make in the field of AI, particularly in addressing global challenges like climate change and medical breakthroughs. Understanding the distinct strategies and strengths of each ecosystem is crucial for a comprehensive view of global AI progress. The world's most profound challenges are not bound by national borders, and the collaborative efforts of both China and the US will be essential in harnessing the transformative potential of AI.