The US continues to lead in developing AI, but risks falling behind in deploying it at scale. China, once seen primarily as a follower, is positioning itself as a leader in implementation. If this persists, the consequences will be seen in the competitiveness of national economies.

When it comes to artificial intelligence, the United States still dominates the headlines – and, by most conventional measures, the technology itself. American institutions continue to produce a large share of high-impact AI research, and private investment reached over US$109 billion in 2024, nearly 12 times China’s total, according to the Stanford Institute for Human-Centred AI.

At the same time, the economics of AI are rapidly improving. Training and deployment costs have fallen dramatically in recent years, making large-scale adoption increasingly viable across industries. By these metrics, the US appears to be winning the AI race. But there is growing evidence this may not be the race that matters most. Because, while the US excels at building AI, China is moving more decisively to use it.

Across industries – from logistics to healthcare – China is not simply adopting AI tools. It is reorganising systems around them. By 2024, China had more than 600 million registered generative AI users and hundreds of models deployed across real-world environments, from hospitals to logistics systems. Adoption is not limited to experimentation; it is embedded in operations. This difference is not primarily about technological capability. It is about........

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