China's artificial intelligence technology is fast catching up to the US, Goldman Sachs says

China has the resources and ambitious top-down plans to potentially create an intelligent economy powered by artificial intelligence and machine learning over the next several years, according to a new report from Goldman Sachs. In the report, titled "China's Rise in Artificial Intelligence," the investment bank said the world's second-largest economy has emerged as a major global contender in using AI to drive economic progress. Goldman said the government and companies have identified AI and machine learning as the next big areas of innovation. "We believe AI technology will become a priority on the government's agenda, and we expect further national/regional policy and funding support on AI to follow," the bank said. AI is already widespread: From simple smartphone applications that can tell the weather to complex algorithms that are able to easily beat humans in board games. Companies such as Google (GOOGL) and Microsoft (MSFT) have poured vast amounts of money into research and development to expand the horizon of what AI can achieve.