The AI Economy

This book presents a systematic examination of AI-related economic issues from three perspectives: computing power layer, model layer, and application layer. It examines the productivity characteristics of this round of AI advancement and its impact on production relations, focusing on macro-level implications, industrial impacts, governance challenges, and providing systematic, forward-looking, and trend-based economic analysis. The book posits that scaling law is a prominent feature of this round of AI technological progress, signifying that China and the United States, as two major powers, possess distinct advantages in cultivating the AI economy. At the industry level, the promotion of robust "AI+" development is pivotal for China to expedite its catch-up. At the macro level, AI is projected to contribute an additional annual growth of 0.8 percentage points to China's economy on the supply side over the next decade. Achieving supply-side growth necessitates active coordination from fiscal policies, particularly the need to enhance the social security system to stimulate demand. This book combines academic rigor with accessible language, aiming to provide incremental observations on AI economics for the general public, research institutes, enterprises, and financial institutions. It aims to provide valuable industry references to inform the formulation of policy frameworks and support macro policies for AI industrialization and the adoption of industrial AI in China.This book is Open access.