The US-China AI race is also an ethical dispute

Artificial intelligence (AI) is transforming our industries, economies, technologies, and global power dynamics. The United States and China are the main competitors in the race to dominate the rapidly developing field of AI. But what sets these AI giants apart?

With its long history of innovation and robust technology industry, the U.S. has led the way in AI development and investment. China, however, is working to close the gap through ambitious state-led initiatives. Over the years, both countries have seen their engagement with AI evolve in the technological, medical, and military fields—changes that could yet shape the U.S.-China relationship.

The U.S. has cemented its leadership in AI by providing broad access to research resources, such as through the National AI Research Resource, and by investing in developing an AI-ready workforce. Examples include a pilot program by the Department of Energy and the National Science Foundation to train more than 500 new AI researchers by 2025. The U.S. plans highlight its focus on the need for a skilled workforce to advance science, the economy, and national security.

China has also made notable strides in its AI research, surpassing the US in several key areas. According to Georgetown University’s Center for Security and Emerging Technology, China leads the world in the volume of AI research papers, with the Chinese Academy of Sciences leading the way. While the quality of Chinese research has lagged behind in some areas, Chinese institutions now top the rankings for highly cited research.

China’s AI strategy places a strong emphasis on computer vision, a field that accounts for 32% of global AI research and grew 121% between 2017 and 2022. This aligns with China’s strategic AI priorities, which include autonomous vehicles, manufacturing and surveillance. The US, on the other hand, maintains an advantage in machine learning models, led by tech giants like Google and Microsoft.

Intensifying AI competition between the U.S. and China will shape global technology standards, economic policies, and security frameworks, making continued investment in AI research crucial for both nations.

Artificial intelligence (AI) holds great promise—and challenges—in the rapid transformation of healthcare. While early AI systems like MYCIN struggled to integrate into clinical practice, today’s tools, powered by machine learning algorithms and big data, promise to improve diagnostics, treatment planning, and patient care.

The role of AI in healthcare is growing in the U.S. With corporate health plans expected to cost 9% more next year, partly due to inflation, the industry is turning to AI to reduce costs. Accenture estimates that 40% of healthcare providers’ work hours could be aided or augmented by AI, improving efficiency. To date, the U.S. Food and Drug Administration (FDA) has approved at least 950 AI-enabled medical devices.

Advances continue, such as Google’s large-scale medical language model, called Med-PaLM 2, which achieves an 85% accuracy rate when answering medical questions.

China also has significant ambitions in medical AI. Its strategy focuses on commercialization, leveraging its vast data repositories. By restricting access to its national datasets while utilizing global data, China gains a significant competitive advantage.

China aims to be a world leader in AI by 2030. With this goal in mind, its 2030 healthcare technology ambitions and determination to address issues such as misdiagnosis and doctor shortages will likely see the country set healthcare standards globally.

In the military and defense field, AI is also a transformative force. Both the US and China are investing heavily in intelligent and autonomous systems. An estimated 38% of AI public contracts awarded by the US military focus on autonomous vehicles, especially aerial systems, while for the Chinese military, the figure is 35%.

Both nations are developing advanced drones, from microdrones for surveillance to larger unmanned aerial vehicles (UAVs) such as the MQ-8C Fire Scout for combat support.

In terms of intelligence, surveillance and reconnaissance, AI-based systems continue to be a priority for both sides. The US and China are investing in geospatial analysis, with contracts awarded to AI-enabled platforms capable of processing satellite data in real time, which is crucial for improving situational awareness. Both countries are also improving the detection capabilities of unmanned systems. While the US is looking to equip drones like the MQ-9 Reaper with advanced sensors, China is following suit with its UAVs.

The fact that both the US and China are focused on integrating AI into their military functions—in autonomous systems, intelligence capabilities, and predictive logistics—highlights the transformative potential of AI in warfare. This US-China military AI race is likely to shape global military strategy and power dynamics.

However, the race for AI is not just about technology; it also involves ethical issues, with far-reaching implications. The US, for example, has taken a central role in researching and developing ethical AI at the Organisation for Economic Co-operation and Development (OECD) AI Policy Observatory. Meanwhile, China, while rapidly advancing its AI capabilities, has often prioritized efficiency and scale, raising concerns about privacy, surveillance, and potential misuse of AI. China’s approach to AI ethics is more state-centric, with a greater emphasis on social and national goals.

As these two superpowers shape the future of AI, the ethical frameworks they develop will influence global standards and norms. Their competition will not only determine technological leadership, but will also define the ethical boundaries of AI for decades to come.

Neal Hejib, a summer analyst at CJPA Global Advisors LLC, is a sophomore at the University of Wisconsin-Madison double majoring in data science and economics.

By Earl Carr, Founder and CEO of CJPA Global Advisors LLC.