The US still leads in AI development but lags in large-scale deployment behind China, which is rapidly becoming the leader in implementation

This difference is not primarily about technological capability. It is about implementation.

Economists have seen this pattern before. During the electrification of manufacturing, factories that simply replaced steam engines with electric motors saw little productivity improvement. Real gains only came when companies reorganised entire production systems around electricity – a dynamic often associated with economist Robert Solow and later expanded by Erik Brynjolfsson in the context of digital transformation.

Source: News - South China Morning Post