US leads AI development, China dominates deployment

While the United States remains at the forefront of artificial intelligence innovation, China is quickly advancing in its large-scale application. The disparity lies not in technological prowess but in execution. Economists have noted parallels with the electrification of manufacturing, where early adopters experienced minimal productivity enhancements by merely substituting steam engines for electric motors. Significant advancements emerged only when businesses restructured their entire production processes to leverage electricity, a phenomenon linked to economist Robert Solow and further explored by Erik Brynjolfsson regarding digital transformation.