The Impact of AI on China's Three Industries and Economic Structure, and Policy Responses

Against the backdrop of profound global economic transformation driven by artificial intelligence (AI), China, in a critical stage of economic restructuring, faces long-standing issues such as resource misallocation and supply-demand mismatches, which hinder high-quality growth. AI offers unprecedented potential to address these challenges through optimized resource allocation, enhanced supply-demand coordination, and productivity improvements. This study, through a literature review, explores the role of Chinas monetary and fiscal policies in utilizing AI for economic development. The findings reveal that AI significantly promotes upgrading across primary, secondary, and tertiary industries: in primary industries, it enhances agricultural efficiency, enables standardized production, and reduces resource misallocation via intelligent equipment and big data; in secondary industries, it optimizes capital allocation, fosters cross-industry integration, and strengthens non-price competitiveness; in tertiary industries, it improves service quality, personalization, and alleviates supply-demand imbalances. Regarding consumption structure, the popularization of intelligent products may trigger demand-pull inflation, necessitating balanced regulation through monetary tools and fiscal policies.