China will continue to advance its military AI

Significance

Military applications of AI are rapidly reshaping global power dynamics, as evidenced in the Russia-Ukraine and Israel-Hamas conflicts. Against this backdrop, the United States and China have intensified their competition to lead in the field.

Impacts

• China's defence sector could face short-term hurdles due to limited access to advanced AI systems.
• China's military may accelerate domestic AI research to mitigate the effects of US restrictions, boosting domestic capabilities.
• Other countries may boost AI investments in their defence industries to keep pace with China's advancements.
• US tech companies may face decreased revenues due to curtailed access to the Chinese market.