Will China Win the AI Race?

Purpose: The purpose of the chapter is to evaluate the main innovative determinants that influence the acceleration of China’s leadership in AI and assess by what positions this leadership has become real. Design/methodology/approach: In the framework of this chapter, the author, using Y2019 data, conducted a comparative analysis according to four criteria for assessing innovative potential: leadership in new fundamental AI research, forming a theoretical base; leadership in R&D that will form the basis for the creation of new products and services; the number and quality of specialists (AI Talents); the number of companies engaged in AI. This analysis has provided a conclusive answer to the question about the prospects of China to achieve the position of a scientific and technological superpower. Findings: Based on the presented analysis, the competition between the USA and China in AI has toughened. As for today, China leads innew fundamental AI studies forming their theoretical base; applied developments that will form the basis for the creation of new products and services. The United States leads by a significant margin in number and quality of AI Talents; the number of AI enterprises. China’s lag is still significant, and the question of its leadership is still in the future. However, the dynamics of the Chinese AI sector growth indicates that this distress may come very soon. Originality/value: It is shown that the innovative confrontation between China and the US should not be dramatized. Each of them will be able to exist quite safely in the chosen niches. Nevertheless, despite all the efforts (financial and legislative), the question of China’s prospects to achieve the position of scientific and technological superpower remains open. Success will come from those who manage to combine government strategy and national business and mobilize intellectual capital. © 2021, Springer Nature Switzerland AG.