Author(s)

Tong Liu

Corresponding Author

Tong Liu

Abstract

The development of artificial intelligence (AI) is changing the global economy through innovation, geographical power and productivity. The two main participants in this changing world economy through AI are China and the United States. According to the approach of AI adoption, the two participants are compared in this paper. The use of AI in the private sector helps the country US to strengthen capital funding, proper intellectual poverty protection system and advanced educational institutions. Contrarily, another country China takes the state-led strategy and develops artificial intelligence in their plan to advance the country at each level along with a significant investment in workforce development, research and infrastructure. In the different approaches of the two countries, different types of economic, political and cultural contexts are reflected. The study utilizes both the bibliometric analysis as well as a structural literature review to examine the global implications, economic benefits and limitations of AI adoption for both countries. The results highlight the potential of AI to transform industries, develop new markets, and impact labor relations while also bringing up issues related to social ethics, equality, and governance. This analysis addresses the implications for global power dynamics in addition to revealing the factors influencing economic advantage through AI. The report provides useful guidance for governments and corporate executives navigating the landscape of AI and its revolutionary impacts on the global economy.

Keywords

Artificial Intelligence, Comparative Advantage, United States, China, Economic Development, AI Ethics, Workforce reskilling