US Acceleration in AI Sparks Warnings from China's Premier Over Potential Monopoly
China has taken a significant step towards shaping the future of global artificial intelligence (AI) governance by proposing the creation of the World Artificial Intelligence Cooperation Organization (WAICO). Premier Li Qiang announced this initiative at the World Artificial Intelligence Conference (WAIC) in Shanghai on July 26, 2025.
WAICO aims to serve as a global platform for international cooperation, coordination of AI development, regulation, and ethical governance. The organization emphasizes inclusivity, particularly encouraging participation from the Global South and developing nations, aligning with principles of multilateralism, shared consultation, and equitable decision-making. Shanghai has been designated as the tentative headquarters, leveraging its status as a national AI innovation hub.
The organization is designed to complement UN activities, share China’s AI advancements, and foster a balanced and open global AI environment. In conjunction with this proposal, China also announced a Global AI Governance Action Plan, outlining a 13-point roadmap for global AI collaboration, including infrastructure development, data quality and security, open and inclusive ecosystems, sustainability, and bridging the digital divide.
The establishment of global AI standards could level the playing field, creating a more stable and predictable business environment. As the AI sector intensifies globally, with the United States accelerating its efforts, this organization could impact the competitive landscape and the way companies develop and deploy AI products and services.
The US currently holds a dominant position in the global AI market, with American companies accounting for around 60% of the total market value. However, China's share is expected to reach 30% by 2030. To remain competitive in the rapidly evolving AI landscape, investing in AI research and development is essential.
Developing a comprehensive AI strategy that aligns with a business's overall goals and values is crucial. This may involve building in-house AI capabilities, partnering with research institutions and startups, or acquiring AI talent and technologies through strategic investments and acquisitions.
Preparing a workforce for the AI-powered future is also essential, as up to 30% of jobs could be automated by AI and related technologies in the coming years. This involves investing in reskilling and upskilling employees to ensure they are equipped to thrive in the AI-powered economy.
Fostering a culture of collaboration and knowledge-sharing is important, as it can help leverage collective expertise and drive AI innovation. Engaging with industry associations, policymakers, and other stakeholders can help ensure that a business's interests are represented and that it is well-prepared to comply with new requirements.
To stay ahead of the curve and position a business for success in the AI-powered economy, it's crucial to monitor and engage with the emerging global AI regulatory framework. China, for instance, has been investing heavily in AI research and development, with an estimated $150 billion allocated to the sector over the next five years. This strategic response to the US's quickening pace of AI development signals China's determination to remain at the forefront of this transformative technology.
The primary objectives of this organization are to prevent AI from being monopolized and to tackle potential risks associated with AI, such as job displacement and economic disruption. The global AI market is projected to reach $1.5 trillion by 2030, making it crucial for businesses to be prepared for this shift. This strategy should include a clear vision for how AI will be integrated into a business's products, services, and operations, as well as a roadmap for building the necessary capabilities and infrastructure.
- China's proposal for the World Artificial Intelligence Cooperation Organization (WAICO) aims to create a global platform for international cooperation and ethical governance of AI.
- Shanghai, deemed a national AI innovation hub, has been designated as the tentative headquarters for WAICO.
- WAICO follows principles of multilateralism, encouraging participation from the Global South and developing nations.
- The organization's goal is to complement UN activities, share China’s AI advancements, and foster a balanced and open global AI environment.
- The establishment of global AI standards could benefit startups and businesses by leveling the playing field and creating a more stable and predictable environment.
- As the AI sector becomes increasingly competitive globally, particularly with the United States accelerating its efforts, investing in AI research and development is crucial.
- Developing a comprehensive AI strategy that aligns with a business's overall goals and values is essential, which may involve internal development, partnerships, or acquisitions.
- Preparing a workforce for the AI-powered future is vital, as up to 30% of jobs could be automated in the coming years through AI and related technologies.
- Fostering a culture of collaboration and knowledge-sharing is important for leveraging collective expertise and driving innovation in AI.
- To remain competitive in the AI-powered economy, businesses must engage with the emerging global AI regulatory framework, such as China's strategic investment in AI research and development.
