China has virtually overcome crippling US tech restrictions, according to a senior executive at Huawei Technologies, as mainland-developed computing infrastructure, AI systems and other software now rival those from the world’s largest economy.
Shenzhen-based Huawei, which was added to Washington’s trade blacklist in May 2019, has already “built an ecosystem entirely independent of the United States”, said Tao Jingwen, president of the firm’s quality, business process and information technology management department, at an event on Wednesday in Guiyang, capital of southwestern Guizhou province.
Tao highlighted the privately held company’s resilience at the event, as he discussed some of the latest milestones in its journey towards tech self-sufficiency.
That industry-wide commitment to tech self-reliance would enable China to “surpass the US in terms of artificial intelligence applications” on the back of the country’s “extensive economy and business scenarios”, he said.
His remarks reflected Huawei’s efforts to surmount tightened US control measures and heightened geopolitical tensions, as the company pushes the boundaries in semiconductors, computing power, cloud services, AI and operating systems.
Tao Jingwen, president of Huawei Technologies’ quality, business process and information technology management department. Photo: Handout
Tao’s presentation was made on the same day that Huawei said users of token services on its cloud platform had access to its CloudMatrix 384 system, which is a cluster of 384 Ascend AI processors – spread across 12 computing cabinets and four bus cabinets – that delivers 300 petaflops of computing power and 48 terabytes of high-bandwidth memory. A petaflop is 1,000 trillion calculations per second.
The Dr. Pritam Singh Foundation, in collaboration with IILM University, hosted a discussion on “Human at Core: AI, Ethics, and the Future” at Tech Mahindra, Cyberabad, on Saturday, in memory of the late Dr. Pritam Singh, a noted academic.
After launching the discussion, Assembly Speaker Gaddam Prasad Kumar highlighted the ethical challenges of Artificial Intelligence (AI), warning against algorithmic bias, threats to data privacy, and job displacement. He called for large-scale reskilling and emphasised that India must shape AI technologies to reflect its values of fairness, transparency, and inclusivity. He urged corporate leaders to establish strong governance frameworks, audit algorithms for bias, and ensure responsible adoption of AI.
Delivering the keynote address, Chairman of Administrative Staff College of India (ASCI) K. Padmanabhaiah stressed India’s opportunity to leverage AI for inclusive growth across healthcare, agriculture, education, and fintech — while ensuring technology remains human-centric and trustworthy.
One of the founders of the Dr. Pritam Singh Foundation P. Dwarakanath, Director at IILM University Chaturvedi, Director at the Institute for Development & Research in Banking Technology (IDRBT) Deepak Kumar, Managing Director of Signode Asia Pacific Gaurav Maheshwari, Pritam Singh’s son Vipul Singh, and author and economist Vikas Singh spoke.
With fears about the strength of consumer spending running high due to tariffs, inflation and other economic pressures, retailers are working hard to sustain revenue growth. While some retailers are leaning into worker-led personalized experiences for shoppers, other retailers are focusing more on leveraging artificial intelligence to optimize the shopping experience.
Walmart is one of those retailers, adding new “super agents” that aims to save time and effort for both workers and shoppers. At its recent Retail Rewired innovation event, Walmart highlighted the launch of four “super agents,” which include Marty for sellers and suppliers, Sparky for shoppers, the Associate Agent and the Developer Agent.
With agents performing capabilities in the realm of payroll, paid time off, merchandising and finding the right products for any event, Walmart is consolidating its powerful, time-saving tools for the sake of a streamlined experience for multiple points of interaction with the company.
“Having a plethora of different agents can very quickly become confusing,” Suresh Kumar, chief technology officer for Walmart Global, said at the event.
The Associate Agent, for example, is “a single point of entry where any associate can find access to all of the agents we’ve built on the back end,” explained David Glick, senior vice president for Enterprise Business Solutions at Walmart. “As you speak to it more, as you work with it more, it’ll know more about you.”
The evolution comes alongside a broader shift for retail, an industry actively seeking to counteract cost concerns from consumers and the government, and Walmart isn’t alone in its push toward all things AI. Amazon’s Prime Day event over four days in July saw generative AI use jump 3,300% year over year, according to TechCrunch. Meanwhile, Google Cloud AI partnered with body care retailer Lush to visually identify projects without packaging, ultimately reducing the expense of training new hires.
Making digital twins of Walmart stores
Walmart is also all-in on physical and spatial AI, specifically digital twins (a virtual copy of any physical object or space — in Walmart’s case, their stores and clubs). Using digital twin technology powered by spatial AI, Walmart can “detect, diagnose and remediate issues up to two weeks in advance,” Brandon Ballard, group director for real estate at Walmart US, said at Retail Rewired. Using this technology comes with big savings, according to Ballard. “Last year, we cut all of our emergency alerts by 30% and we reduced our maintenance spend in refrigeration by 19% across Walmart US,” he added.
“At its core, retail is a physical business,” said Alex de Vigan, CEO and founder of Nfinite, which generates large-scale visual data for training spatial and physical AI models. “We’ve seen retailers use digital twins to reduce setup time for new promotions, reallocate labor more efficiently, and improve robotic picking accuracy, small gains that add up quickly when margins are under stress,” he said.
While the impact of digital twins may not be outwardly visible to consumers in the same way, say, Walmart’s Sparky agent is, its effects will be real. “Better stock accuracy, faster site updates and fewer order issues mean a smoother retail experience, even in a tighter economy,” said de Vigan.
Another innovation on the back end is Walmart’s use of machine learning to better understand how long it will take to get a delivery order on a customer’s doorsteps, effectively managing expectations while increasing efficiency.
As for what consumers can see, Sparky is already helping shoppers generate baskets built on an intuitive understanding of their needs. Walmart is currently working on enabling the agent to take action on reordering products, ultimately reducing the mental load that shoppers deal with.
For retailers, AI is one way to combat any slowdown in consumer spending, but we’ve yet to see how a fully integrated AI shopping experience — both in person and online — will shape our relationship with retail moving forward.
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Amid the hype over AI, a practical question: When will the technology boost the economy the way its developers and promoters are promising? Is artificial intelligence going to unleash a surge in worker productivity, as epochal new tech has done in the past? Or is investor enthusiasm for it overdone?
In one sense, AI is already adding to GDP. Spending on AI hardware is astronomical, both for the costly, specialized chips that power AI and the related infrastructure to deliver the electricity that those chips devour. This spending raised GDP by 0.3% in the second quarter of this year. Even that doesn’t fully capture the size of this investment surge, since some capital outlays that tech firms are making don’t show up in the official GDP accounting method. Just look at the top five firms by AI investment: Amazon, Alphabet, Meta, Microsoft and Oracle. The increase in their AI-related capital expenditures over the past two years equals about 10% of GDP gains in the U.S. over that time period. Add the power plants, transmission lines and other infrastructure they need to run their data centers, and the outlay is even bigger.
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There are also signs that businesses are gearing up for AI to make an impact on their operations. Company mentions of AI use for research tripled since Nov. 2022, when ChatGPT launched and turbocharged generative AI. 25% of job listings posted for IT professionals since the start of last year have asked for AI-related skills. The number of mobile AI app downloads hit 60 million this March. Internet searches related to AI have grown tenfold since OpenAI unveiled ChatGPT to the public. When it comes to whether AI will make workers more productive, the picture gets murkier. There are some early signs that it’s happening. Inflation-adjusted revenue per worker among S&P 500 companies has been rising since late 2022, following a 15-year period when it stayed flat.
It’s not clear why, but the overlap with advanced AI applications going mainstream is hard to ignore. But with so much money pouring into AI, there are reasons for skepticism. Much of the investment being made today could end up wasted. Many companies that are in vogue now figure to fail. It’s possible that AI computing power being rushed online could ultimately prove to be unneeded, akin to how fiber-optic cable networks got overbuilt in the 1990s. That capacity eventually got used as data consumption rose, but not before builders who spent too much on it went bankrupt. If the current AI data center boom fizzles, the pullback in spending could spark a mild recession, as the tech bust in 2001 did. Most major technological leaps take time to filter through the economy. AI does seem genuinely transformative. But the transformation may take many years.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
