All topicsSTATE OF AI REPORT. 2018

AI becomes a subject of national strategy

By 2018, governments were presenting AI as a source of economic and strategic advantage. National plans combined funding, skills, and industrial ambitions. The report also asked a more difficult question: how much of the changing labor market could actually be attributed to automation?

Questions in this section

What was AI nationalism in the 2018 report?Did the report attribute all job changes to automation?What did China’s $150 billion figure represent?What research ambition accompanied China’s industrial target?How were the UK funding commitments divided?What training commitments appeared in the UK AI Sector Deal?What factors besides automation could affect employment?Did the report present only one view of AI’s effect on jobs?

National plans combine skills and industrial ambitions

The report compared China’s 2030 AI strategy with plans in Europe and elsewhere. China’s stated ambition included a $150 billion AI industry by 2030. Such targets signaled intent; they were not measurements of an industry that already existed at that size.

National plans combine skills and industrial ambitions - 2018 report, PDF page 139
National plans combine skills and industrial ambitions. 2018 report, PDF page 139

The UK pairs public funding with training commitments

The UK AI Sector Deal included £603 million in newly allocated government funding, £300 million in matched private funding, and commitments for teachers and PhDs. The report treated these as policy commitments with different purposes, not directly comparable measures of national capability.

The UK pairs public funding with training commitments - 2018 report, PDF page 143
The UK pairs public funding with training commitments. 2018 report, PDF page 143

Automation is not the only explanation for labor-market change

The report discussed globalization, offshoring, declining unionization, and other factors alongside automation. It resisted assigning all changes in wages or employment to AI, an important limit when interpreting surveys about the future of work.

Automation is not the only explanation for labor-market change - 2018 report, PDF page 130
Automation is not the only explanation for labor-market change. 2018 report, PDF page 130

Automation was one explanation among several

The report explicitly placed automation alongside globalization, financialization, consolidation, and demographic change when discussing work. That framing matters when reading historical forecasts: an observed labor-market change cannot be assigned to AI simply because AI capabilities improved over the same period.

Evidence you can use

Politics in the 2018 report

Historical snapshot: June 2018. Dates and populations are specified per row.

Politics in the 2018 report
MeasureReported valueDefinition and source
China AI industry target$150B by 2030Stated policy goal, not observed 2018 industry revenue.2018 report, PDF page 139
UK newly allocated government funding£603MOriginal currency preserved; AI Sector Deal allocation.2018 report, PDF page 143
UK matched private funding£300MSeparate private-sector commitment under the same deal.2018 report, PDF page 143

Policy amounts retain their original currencies and announcement-time meaning. Targets and funding commitments are not realized outcomes. Labor-market trends do not by themselves identify the effect of AI.

Frequently asked questions

Sources and dates

Historical snapshot published June 29, 2018. This web edition was prepared on 2026-10-11 from the online deck and original launch posts. Findings and forecasts retain their original time frame.

  1. 2018 report, PDF page 130Original 2018 report. This edition has no printed slide numbers. References use one-based PDF pages.
  2. 2018 report, PDF page 139Original 2018 report. This edition has no printed slide numbers. References use one-based PDF pages.
  3. 2018 report, PDF page 143Original 2018 report. This edition has no printed slide numbers. References use one-based PDF pages.
  4. State of AI Report 2018: online slides
  5. Stories from Air Street launch essayJuly 29, 2018.

Cite this page

Benaich, Nathan, and Ian Hogarth. “AI becomes a subject of national strategy.” State of AI Report 2018. Historical report snapshot; web edition prepared 2026-10-11.