AI is transforming various sectors globally, but adoption differs. China prioritizes speed and practicality, embracing imperfections. The West, seeking perfection, can learn from China’s pragmatic approach to AI integration.

AI is already everywhere, ready to change the way we work and play, how we learn and how we are looked after. From hospitality to healthcare, entertainment to education, AI is transforming the world as we know it.

But it’s developing at a different pace in different parts of the world. In the west, it seems, there is a tendency to aim for perfection, with companies taking their time to refine AI systems before they are implemented.

China, on the other hand, has taken a more pragmatic path, on which speed and adaptability are prioritised over flawless execution. Chinese companies appear more willing to take risks, accept AI’s current limitations and see what happens.

And China’s desire to be the world leader in AI development seems to be working. Here are three important lessons the west can learn from China’s economic strategy towards AI.

1. Embrace imperfection

Many Chinese companies have adopted a “good enough” mentality towards AI, using it even when the technology is not fully developed. This brings risks, but also encourages fast learning.

For example, in 2016, Haidilao, a popular Chinese restaurant chain, introduced “Xiaomei”, an AI system which dealt with customers calling up to make reservations. While Xiaomei is not the most sophisticated AI system (it only understands questions about reservations), it was effective, managing over 50,000 customer interactions a day with a 90% accuracy rate.

It’s not perfect, but it provides a valuable service to the business, proving that AI doesn’t need to be flawless to make a big impact.

2. Make it practical

A key distinction between AI strategies in China and the west is the focus on practical, problem-solving applications. In many western industries, AI is often associated with cutting-edge technology like robot-assisted surgery, or complex predictive algorithms.

While these advances are exciting, they do not always bring immediate impact. China, by contrast, has made significant strides by applying AI to solve more basic needs.

In China, some hospitals use AI to help with routine – but very important – tasks. For instance, in April 2024, Wuhan Union Hospital introduced an AI patient service which acts as a kind of triage nurse for patients using a messaging app.

Patients are asked about their symptoms and medical history. The AI then evaluates the severity of their needs, and prioritises appointments based on urgency and the medical resources available at that time. The results are then relayed to a human doctor who makes the final decision about what happens next.

By helping to ensure that those with the most critical needs are seen first, the system plays a crucial role in improving efficiency and reducing waiting times for patients seeking medical attention. It’s not the most complex technology, but in its first month of use in the hospital’s breast clinic, it reportedly provided over 300 patients with extra consultation time – 70% of whom were patients in urgent need of surgery.

3. Learn from mistakes

China’s rapid adoption of AI hasn’t come without challenges. But failures serve as critical learning experiences.

One cautionary tale over AI implementation comes not from China, but from Japan. When Henn na Hotel in Nagasaki became the world’s first hotel staffed by robots, it received a great deal of attention for its futuristic concept.

But the reality soon fell short of expectations. Churi, the hotel’s in-room assistant robot, frequently misunderstood guest requests, leading to confusion. One guest was reportedly woken up repeatedly because a robot in his room mistakenly understood the sound of his snoring to be a question.

In contrast, many Chinese hotels have taken a more measured approach, opting for simpler yet highly effective robotic solutions. Delivery robots are now commonplace in hotel chains across the country, and while not overly complex, they are adept at navigating hallways and lifts autonomously, bringing meals to guests.

By focusing on specific, high-impact problems, Chinese companies have successfully integrated AI in ways that minimise disruption and maximise usefulness.

The Chinese restaurant chain I mentioned earlier provides another good illustration of this approach. After the success of its chatbot, Haidilao introduced “smart restaurants” equipped with robotic arms and automated food delivery systems. While innovative, the technology struggled during peak hours and lacked the personal touch many customers valued.

Instead of abandoning the project, Haidilao continued to adjust and refine its use of AI. Rather than adopting a fully automated restaurant model, it went for a hybrid approach, combining automation with human staff to enhance the dining experience.

This flexibility in the face of setbacks represents a crucial willingness to pivot and adapt when things don’t go as planned. Overall, China’s pragmatic approach to AI has enabled it to take the lead in many areas, even as the country lags behind the west in terms of technological sophistication. This is driven by a willingness to embrace AI’s imperfections, and then adapt where necessary.

Where speed and adaptability are critical, companies can’t afford to wait for perfect solutions. By embracing AI’s imperfections, focusing on practical applications and real-world feedback, Chinese companies have unlocked the economic value of AI in a way that others are being too timid to emulate.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

China Telecom Gulf was launched in Riyadh, enhancing digital cooperation between China and Saudi Arabia under the “Belt and Road Initiative,” with a focus on technological innovation and infrastructure development.

China Telecom Gulf Launches in Riyadh

On November 21, 2024, China Telecom Gulf was officially inaugurated in Riyadh, symbolizing a significant advancement in China Telecom’s internationalization efforts and commitment to the "Belt and Road Initiative." The event was attended by over 100 dignitaries, including Mr. Liu Guiqing, Executive Director of China Telecom Corporation, and Mr. Fawaz from the Industrial and Commercial Bank of China Riyadh Branch, marking a milestone in fostering a shared future between China and Arab nations.

Commitment to Digital Transformation

In his speech, Mr. Liu highlighted China Telecom’s dedication to collaborating with Saudi enterprises and local governments to enhance digital infrastructure. By leveraging its expertise in technologies like 5G and artificial intelligence, the company aims to provide high-quality communication services, thereby driving socio-economic growth in the region.

Strategic Partnerships for Growth

During the launch, China Telecom Gulf signed strategic agreements with several prominent companies, including Saudi Telecom Company and Huawei. These collaborations are geared towards optimizing digital experiences for Saudi customers and contributing to the broader Sino-Saudi cooperation in technology and economic development, solidifying China Telecom’s role in the Middle Eastern telecom landscape.

Source : China Telecom Gulf Officially Launches in Saudi Arabia for Business

Since 2014, India’s Modi government aimed to boost manufacturing through the Make-in-India campaign. However, tensions with China led to increased scrutiny of Chinese investments post-COVID-19, limiting their influence.

Modi’s Manufacturing Push

Since Narendra Modi took office in 2014, his administration has focused on boosting the manufacturing sector’s contribution to India’s GDP. The launch of the Make-in-India campaign aimed to enhance manufacturing capabilities and attract foreign direct investment (FDI), even in sensitive sectors such as defense and railways, thereby fostering economic growth.

Shift in Economic Relations

During this period, Chinese companies like Oppo and ZTE sought to capitalize on India’s manufacturing potential. However, the 2020 COVID-19 pandemic highlighted the need for safeguard measures against potential foreign takeovers. In response, India revised its FDI policy to increase scrutiny on investments from neighboring countries, particularly targeting Chinese investments, which now require governmental approval.

Geopolitical Tensions and FDI Impact

Tensions escalated after the June 2020 Galwan clash, severely straining Indo-China relations. This ongoing border standoff has posed challenges to the evolving dynamics between the two nations. As a result of these geopolitical tensions and pandemic-era policies, Chinese capital inflow to India constituted merely 0.43% of the total FDI from April 2000 to December 2021, highlighting a significant downturn in bilateral economic ties.

Source : India begins a rebalance of security concerns over China and economic aspirations

Source link