Rapid advancements in artificial intelligence (AI) have the potential to deliver significant and ongoing opportunities for the world’s economy. This brings a new chance for mutually beneficial cooperation among emerging economies. India is a typical example. Some of the new careers emerging in the country, such as data labeling – identifying raw data including images, and adding one or more meaningful and informative labels to provide context so that a machine learning model can learn from this information – have attracted the attention of some start-ups from developing countries. India’s electronics industry is another beneficiary. For instance, Reuters reported on Tuesday that China’s Lenovo Group will start making AI servers at its plant in southern India, and that it has opened an AI lab to do research and development work specializing in servers in the tech hub of Bengaluru.

This creates a complex interplay between human and artificial intelligence, leading to a new era of economic growth. The rise of generative AI has led to a surge in demand for new skills and knowledge. This has created a significant opportunity for individuals to upskill and reskill themselves, preparing for the changing job market.

India, for example, is attempting to jump-start AI development. The country in March approved a 103 billion rupee ($1.25 billion) investment in AI projects, including work to improve the computing infrastructure and develop large language models, Reuters reported. India’s AI market is projected to touch $17 billion by 2027, growing at an annualized rate of 25-35 percent between 2024 and 2027, the report said, citing IT industry body Nasscom. Enormous potential remains to be tapped in the AI market in developing countries. As a result, cooperation in AI supply chains among multinational enterprises has received increasing attention. In this process, Chinese enterprises are increasingly venturing into the global arena, a reflection of the overall rapid development of China’s AI industries.

These demands are driven by the Chinese government’s strategic vision for the country’s future. Here are the key drivers of China’s AI industry development:

1. **Economic Growth and Competitiveness:**
– **Driven by:** China’s rapid economic growth and the increasing need for competitiveness in global markets.

This has led to a significant slowdown in investment flows from China to India. This slowdown has been further exacerbated by the economic slowdown in China, which has impacted the growth of the Indian economy. The Indian government has implemented various measures to attract foreign investment, including tax incentives, infrastructure development, and ease of doing business reforms.