AI is going to be big: $15.7 trillion big by 2030, according to our research. The AI pie is so big that besides individual companies, countries are working on strategies to claim the biggest possible slice.

The US started off strong, with a trio of reports in 2016. They outlined a plan to make the US an AI powerhouse and thereby boost both the economy and national security.

Recommendations included increased federal funding, regulatory changes, the creation of shared public data sets and environments, the definition of standards and benchmarks, workforce development and ways for AI to bolster cybersecurity and the military.

But since a new administration entered at the start of 2017, the government has abandoned this plan. It’s cutting AI research funds.

Its recently passed tax reform, however, could boost AI in the US. The lower corporate tax rate, provisions for repatriating cash from overseas and permission to expense 100 percent of capital investments is likely to spur investment in AI and other technologies. And the current administration’s emphasis on deregulation could help AI in certain sectors, such as drones and autonomous vehicles.

China stands apart

China’s next-generation AI plan, released in 2017, declared AI as a strategic national priority for the country and showcased the top leadership’s vision for a new economic model driven by AI.

Unlike the US, the Chinese government is putting this plan into practice. For example, it recently commissioned Baidu to create a national “deep learning laboratory” together with leading universities—and it’s investing an undisclosed sum in the effort.

The country is already strong in AI. Baidu, Alibaba and Tencent are among the global AI leaders. Chinese programmers recently won the ImageNet AI competition. And its leading ecommerce companies are using highly sophisticated AI in their warehouses and across the business.

Other countries also have innovative engineers, universities and companies. But China stands apart in the extent to which its government is prioritizing AI. Our research indicates that China will reap the most benefit from AI over the next decade: some $7 trillion in GDP gains by 2030, thanks to an uptick in productivity and consumption.