# Analysis of the Impact Measurement on RE Development in the Context of Artificial Intelligence

Authors: Xiang Sui
Journal: Mathematical Problems in Engineering
 (2022)

---

## Abstract

The research and application of artificial intelligence (AI) have changed the way people live and produce. This paper discusses the factors affecting the development of RE in the context of artificial intelligence, analyzes the industrial status of 31 provincial administrative regions in China from the three dimensions of industrial influence, industrial relevance, and industrial efficiency, and uses gray correlation analysis to evaluate the system and measure.


---

## Body

## 1. Introduction

AI products based on various machine learning algorithms have been improving their ability to solve practical problems. In commercial applications, AI technology uses computer learning algorithms to derive a set of intelligent decision rules for target machines and control systems from existing data so that AI products can simulate the thinking process of the human brain and replace human beings for automated operations. The commonly used neural network model is shown in.(1)T=fWA′b.Therefore, some scholars regard AI technology as a new factor of production, which will change the traditional economic growth model under its wide application. On the one hand, AI has a certain substitution effect on labor and capital factors; on the other hand, AI will also promote product and service innovation. This has an important driving effect on RE development. Take the current application of AI technology in the field of auto self-driving as an example. AI technology will change the economic growth model of the whole auto industry, as shown in Figure1.Figure 1
AI drives economic growth model innovation in the automotive industry.At present, the development of AI industry plays an irreplaceable and important role in the industrial transformation and upgrading of China’s regional economy. Like the previous technological revolution, the impact of AI on the economic development of the region focuses on promoting the improvement of labor productivity in the region. Some scientists have conducted research in 17 countries and regions, including the USA, the UK, and France. In view of the current trend, the impact of AI on the future economic development of the region will be more prominent (Table1). Table 2 shows the changes in the scale and growth rate of China’s AI market.Table 1
The impact of AI on the annual growth rate of GDP of several countries.
CountryBase growthrate (%)AI stable contributionstatus (%)United States2.64.6United Kingdom2.53.9Germany1.43.0France1.72.9Japan0.82.7Sweden1.73.2Italy1.02.8Table 2
China’s AI market size and growth rate changes in the past three years.
YearAI market size (billion yuan)Growth rate (%)201696.6137.92017130.1340.72018200.9754.4Artificial intelligence (AI), by its connotation, is a set of computer systems with intelligent thinking required or a set of intelligent systems that solve complex problems requiring the adoption of rational decisions to achieve goals. AI is an important source of modern economic growth and an important engine for the sustainable development of China’s regional economy. The research and application of AI technology has changed people’s ways of life and production. In 2017, China incorporated the development of AI into the government work report for the first time, raised it to the national strategic level, and regarded it as part of economic development. The introduction of AI technology, through the formation of new growth points, creates industries with regional advantages, injects new impetus into the development of the regional economy, and promotes the development of the regional economy. Therefore, this paper discusses the influencing factors of RE development under the background of artificial intelligence and evaluates the factors affecting RE development and their significance by establishing a deep learning model.


## 2. Related Work

From the multiyear trend, the development of AI in China has experienced three stages: the embryonic period, the slow development period, and the rapid development period [1, 2] (Figure 2).Figure 2
Patent application of AI in China from 2000 to 2018.From the development of AI in different regions, AI in the eastern region started earlier, thus the current situation is that the eastern region is far ahead, the central region is developing slowly, and the western and northeastern regions are lagging behind on the whole in China [3–5]. First, from the development trend, the AI patent applications and the rapid development of AI in the eastern region since 2014 are consistent with the trend of AI development in China as a whole, while the development in other regions has been relatively slow [6, 7]; second, from the number, the number of AI patent applications in the eastern region in 2018 was 24,415, accounting for 70.12% of the national ratio reaching 70.12%, while the previous 2014–2017 eastern region also accounted for more than 65% of the country 7–9 (Figure 3).Figure 3
AI development in different regions.The study by [10, 11] shows that the increase of income inequality between different groups may also lead to the increase of inequality between regions. High skilled professionals are concentrated in cities that create new jobs, which is often different from unemployed cities, leading to the increase of inequality between cities. [12, 13] suggests that the substitution of unskilled labor in developing countries by AI reduces the relative wage levels in these countries, which in turn affects the international distribution of output. The development of industrial automation triggered by AI will replace labor at a cheaper cost, and developing countries will gradually lose their cost advantage. Furthermore, industrial automation will mean that manufacturing will create fewer jobs where wages are relatively high [14, 15, 16]. Through the empirical analysis of interprovincial panel data from 2000–2016 in China, it is found that high-tech industrial agglomeration in China makes the income gap between regions widen by affecting the employment structure, industrial structure, and income structure of regions, and from different regions, in the national and eastern regions, high-tech industrial agglomeration can effectively suppress the regional income gap, while the opposite is true in the central and western regions.Therefore, the relevant research results at home and abroad show that although domestic and foreign scholars have studied the impact of AI on RE growth, the impact degree of AI on RE growth and the progress and measures of its impact on RE growth are the measures taken to realize the impact of AI industry on RE growth. The relevant empirical analysis is even less. Therefore, this paper quantitatively analyzes the impact of AI on China’s RE development and establishes corresponding models for practical experiments [17, 18].


## 3. Methods

The application of AI in RE development requires full consideration of regional characteristics, climatic features, and types of typical industries. In the research process, the article mainly analyzes the industrial situation of 31 provincial administrative regions in China in three dimensions: industrial influence, industrial relevance, and industrial efficiency [19–22].Industrial agglomeration reflects the status and role of an industry in the regional economy and explains the degree of specialization of an industrial sector in a specific region. A commonly used indicator to measure the influence of industry is location entropy. The calculation formula is(2)LQij=qij/qjqi/q.Gray correlation analysis is the measurement of the same degree of change trend between systems and systems and factors and factors in the process of development and change.The value added of industries in 31 provincial-level administrative regions of China is set as the reference series, which is set asX0 in the process of model construction, as shown in(3)X0=X0k|k=1,2,…,n=X01,X02,…,X0n.The values are set as comparative series, respectively,X1,X2,…,X8, as shown in(4)Xi=Xik|k=1,2,…,n=Xi1,Xi2,…,Xin,i=1,2,…,m.After dimensionless processing of the reference and comparison series, the correlation coefficient is calculated, as shown in(5)ζik=miniminkX0k−Xik+ρmaximaxkX0k−XikX0k−Xik+ρmaximaxkX0k−Xikri=1n∑k=1nζik.Industrial technical efficiency is used to measure the difference. DEA (Data Envelopment Analysis) is a commonly adopted method, and its formula is as follows.(6)minθs.t.∑j=1nλjxj+s+=θx0,∑j=1nλjyj−s−=θy0,λj≥0,j=1,2,…,n.θ unconstrained, s−≤0,s+≥0.In order to overcome the shortcomings of using the nonindustrial value and Moore’s index to measure industrial transformation and upgrading, this paper, on the basis of the practice of Gan Chunhui, considers two dimensions of industrial structure advanced and rationalization and upgrading, with the weights of both taken as 0.5 to measure the speed as follows.(8)TL=∑i=1nYi/LiY/L−1=∑i=1nYi/YLi/L−1,(9)TS=Y3Y2,where Y,L denote the output value and employment number, respectively. The larger the structural deviation is, the less reasonable the industrial structure is. The larger the ratio of high-end technology to middle and high-end technology industries, the more high-end the industrial structure.The rise of industrial transformation is affected by a series of factors. Existing studies show that the level of economic development, the degree of opening to the outside world, foreign direct investment, and government intervention have an impact on the modernization of industrial structure. Taking these indicators as benchmark variables can be called(10)Tjt=cj+β1lnAIjt+β2lnpgdpjt+β3openjt+β4lnfdijt+β5govjt+μjt.When analyzing the impact of artificial intelligence on RE development, this paper selects the data of 31 provinces, cities, and autonomous regions in China from 2009 to 2018 as the research object, shown in Table3.Table 3
Descriptive statistical analysis.
Variable typeVariable nameMean valueStandard deviationMinimum valueMaximum valueExplained variablesStructural deviation degree4.0551.8121.81812.013Ratio of the output value of high and middle-end technology industries1.3710.6590.6225.235Core explanatory variablesLevel of artificial intelligence4.5251.062-0.5256.521Control variablesLevel of economic development3.3420.9721.2746.568Degree of opening to the outside world0.3970.4880.0512.515Foreign direct investment0.0410.0410.0290.202Degree of government intervention0.2550.1990.0971.702The results show that in recent ten years, the rationality of China’s industrial structure is relatively poor, the market production has not reached the equilibrium state, and the rationality level of industrial structure varies greatly among provinces, cities, and autonomous regions. The average value of the ratio of the output value of the high-end technology industry to the output value of medium and the high-end technology industry is 1.371, and the standard deviation is 0.659, which is less than the average and has no abnormal value. China’s advanced industrial structure in the past decade is relatively low, and there are obvious differences in the advanced level of provinces, cities, and autonomous regions [23–25].


## 4. Experiments

From the results of AI and RE development shown in Figure4, the higher the level of educational AI, the higher the level of economic development. On the contrary, the lower the level of AI, the lower the level of economic development.Figure 4
Relationship between AI and the RE development level.At the same time, a similar relationship exists between AI and regional development gaps, and this is based on the data calculated above for AI and regional absolute gaps (Figure5).Figure 5
The relationship between AI and the regional development gap in China.In terms of the difference in the absolute value, the gap between the eastern region and other regions in China, which got rich first, is generally widening (see Figure6). At the same time, compared with other underdeveloped regions, the original advantages of the northeast relative to the central and western regions have gradually disappeared, and the gap between the northeast and the central and western regions has gradually narrowed.Figure 6
Evolution of the absolute gap between eastern regions and other regions.In this paper, we use the two-step systematic GMM method to construct a dynamic panel data model to analyze 31 provinces, cities, and autonomous regions in China during the 10 years from 2009 to 2018, as shown in Table4.Table 4
Regression results of the impact of RE development on AI.
Variable1T2TL.T0.739∗∗∗ (114.252)0.755∗∗∗ (129.387)InAI0.028∗∗∗ (6.267)0.039∗∗∗ (3.859)Inpgdp−0.069∗∗∗ (−2.872)open0.182∗∗∗ (12.858)fdi0.273∗ (−1.782)gov0.223∗∗∗ (3.798)cons0.501∗∗∗ (44.023)0.525∗∗∗ (14.022)ar1p−value0.0290.049ar2p−value0.1970.198Hansen value0.2920.279Note.ar1,ar2 represent the first-order and second-order regression residual autocorrelation tests, respectively.The results show that the first-order coefficient explaining the difference between the two regression equations is significant at the level of 1%, and the coefficient of the main explanatory variable is positive, which verifies the effectiveness of the dynamic panel model and the positive correlation between the development of artificial intelligence and its repetition. If the level of artificial intelligence is increased by 1%, its mastery rate will be increased by 0.035%, indicating that the impact of artificial intelligence on redevelopment is relatively small.


## 5. Conclusion

At the beginning of reform and opening up, in order to liberate and develop the productive forces, China implemented the strategy of taking the lead in the development of the eastern region, and before and after entering the 21st century, the country introduced a series of strategies for the development of specific regions in an attempt to achieve coordinated regional development. However, the rapid development of AI technology will bring new growth impetus to RE development, and we should also pay attention to the social problems that may be caused by AI replacing traditional occupations. By doing a good top-level design, accelerating technical research, and improving the quality level and innovation creativity of all people, we can provide guarantee for the stable development of AI industry and give full play to its economic driving effect [26, 27].



---

*Source: 3848836-2022-07-30.xml*