Nobel laureate hails China's AI application in economy

CHENGDU, May 19 (Xinhua) -- Nobel laureate economist Michael Spence has hailed China's emphasis on the adoption and application of artificial intelligence (AI) in the economy, which he considered something not all countries can achieve.

AI's long-term progress depends not only on high-end model research but also on industrial applications, he told Xinhua during the 2026 Tsinghua PBCSF Global Finance Forum held here on Monday and Tuesday, highlighting China's strategic deployment of AI and other frontier technologies in its 15th Five-Year Plan (2026-2030).

"China is now making a major push on AI and other frontier tech in its 15th Five-Year Plan," Spence said, adding that AI's future hinges on real-world industry use and China has already integrated AI into many sectors with systematic efforts.

As two leading AI powers, China and the United States are expected to drive AI development in the years ahead, which will create enormous opportunities for the rest of the world, he said.

On the impact of AI on employment, Spence said that while some traditional jobs would be replaced by automation, certain industries would see rising incomes and growing demand as efficiency and productivity improve. The AI era calls for better human-machine collaboration, he added.