The report said China is no longer in a position of technological inferiority relative to the United States but rather has become a true peer that may have the capability to overtake the United States in AI.

China's military thinkers anticipate the approach of a "singularity" on the battlefield, where humans can no longer keep pace with the speed of machine-led decisions during combat.

Baidu alone has more than 60 different AI platforms and has spent $1 billion buying up Western AI firms.

China's government and leading technology companies will be putting tens of billions of dollars towards the race to become dominant in Artificial Intelligence