Kathmandu: The United States and China have emerged as the world’s two leading nations in the development of artificial intelligence (AI) technology, according to the second Artificial Intelligence Progress Index released by the International Institute for Management Development (IMD).

The report highlights a contrasting picture of AI progress between the two superpowers. According to Professor Michael Wade, an expert in strategy and digital transformation at IMD, China registered more than 38,000 AI-related inventions between 2014 and 2023, outpacing the United States despite challenges in accessing advanced computer chips. This puts China ahead in the number of AI invention filings.

Wade noted that China’s approach focuses on making AI accessible and practical for everyday life, rather than developing only ultra-powerful systems. The country is emphasizing AI integration in industries such as manufacturing, healthcare, and autonomous vehicles, which he said will significantly contribute to China’s economic growth.

The index shows that American companies continue to lead in the technology sector, while Chinese companies hold the second position globally. China’s technology and insurance companies are among the most capable in adopting AI, whereas traditional government-linked sectors such as energy and construction lag behind.

The report also found that companies mature in AI use saw an average annual revenue increase of 6.79 percent, while those less advanced in AI recorded a 0.51 percent decline in revenue.

The IMD, based in Switzerland, operates teaching centers in Lausanne and Singapore and has recently established a research team in Shenzhen, China.