- US lack a long-term plan and government funding to win the AI race.
Bengaluru: Former Google CEO Eric Schmidt has called on the US to invest more in artificial intelligence (AI) research and development or else China will lead the world.
“China is on its way to surpass us in many, many ways, and they’re cleverly run in a way that’s different from the way we would ever want to run,” Schmidt said speaking on a Bipartisan Policy Centre webcast. “We need to take them seriously. They’re going to end up with a bigger economy, more R&D investments, better quality research, wider applications of technology, and a stronger computing infrastructure.”
He said that China is pulling ahead of the US and the American government lacks a long-term plan and adequate funding to win the race.
“If we don’t act now, in 10 or 20 years we’ll say, How could we have missed this?” he said.
It’s no secret that China wants to topple the US as a global economic superpower, he said and added that China has been open about its ambitions.
In 2017, the State Council of the People’s Republic of China (also known as the Central People’s Government) published the Artificial Intelligence Development Plan.
This strategy is part of the even bigger national “Made in China 2025” plan and will also be linked to the new (digital) Silk Road.
With these plans, China aims to become the world’s largest economic power and to provide its people with adequate prosperity guaranteed by a politically stable system. In addition, China is ensuring that economic, military and diplomatic interests are safeguarded in this way.
Mature start-up ecosystem
China now has a mature and efficient start-up ecosystem on which younger AI companies are building. There is sufficient capital from both the state and private sector for the establishment, scaling and growth of AI start-ups in China.
Schmidt believes a world where China controls AI and trade would not be a very nice place to live. He urges the US government to agree on a long-term, well-funded plan to counter the Chinese surge.
The US reportedly currently invests only 0.7 per cent of GDP on scientific research and development funding. That’s apparently the lowest percentage since the 1960s. For reference, the US spent 3.4 per cent of GDP on defense in 2019.
Spending on space research and development also rose to two percent of GDP in recent years.
Schmidt says the US needs to double down on tech R&D spending over the next five years. He adds that the Trump administration’s current approach of going into a trade war with China and putting sanctions and executive orders on Chinese companies isn’t the best way to stay ahead of China.
Martijn Rasser, senior fellow for public policy at the Center for a New American Security (CNAS), an influential think tank, shares Schmidt’s view. He said that his group is urging the US.to spend $25 billion annually on A.I. research by 2025.
For comparison, the White House said in February that it would increase non-military AI research spending to $2 billion annually by 2022.
China may have gained a healthy lead in the AI race, but there’s still enough field for the US to play. However, if the US government doesn’t act now, Schmidt said that China will pretty much be running the show from now on.
