In so-called "machine-learning," where programs use brain-like networks to teach themselves, China is starting to outpace the United States.
It is hoping to use the technology to transform industries such as manufacturing, health and transport.
Xiaoming is the name given to a customer-service robot developed by the Beijing technology company Roobo.
"My name is Xiaoming. I'm a cute robot. I can check the time and the weather for you."
Xiaoming can answer questions sourcing information from the internet and converse in numerous languages.
She represents the next step in artificial intelligence, machines that teach themselves.
Roobo chief technologist Lei Yu explains how it works.
"In terms of interaction, you input instructions by typing or touching. But our AI system, we simply provide a brain for all devices -- provide them with eyes, ears and a mouth."
The advance has gained the attention of the Chinese government, which is spending big in artificial intelligence.
Some cities have pledged more than $2 billion towards research and development.
At Beijing's Peking University, computer-science professor Zha Hongbin says there is heavy interest among researchers.
"Many researchers in our country are very interested in machine-learning. Our country is on the way to launch the project Artificial Intelligence 2.0, the launching of which would drive the development of machine-learning."
The technology was behind the triumph of Google's artificial-intelligence program AlphaGo in the highly complex Chinese board game Go last month.
The program easily bested Go world champion Ke Jie in three games.
"I have to say that I felt desperate, because, at the beginning, I knew it would be very difficult to win, and I just didn't expect to lose so uninterestingly. I feel a bit of regret."
But the technology has more serious applications.
The company Infervision uses image recognition to detect lung cancer in chest CT scans.
Chief executive Chen Kuan says the technology can make a significant difference.
"It's not easy for humans to miss late-stage nodules or symptoms, but it is very easy for humans to miss small and very early-stage symptoms. Using our technology, we can actually detect the problems much earlier, and I think that's the part in which we can save a lot of lives."
With the company's program installed in 20 hospitals across China, the start-ups are now expanding to the United States and Japan.
They are developing programs to help doctors analyse images of the heart, brain and stomach.
Mr Chen says his goal is not to replace doctors or radiologists but to help them work more efficiently.
"We can use all this deep-learning technology to remove the parts in which they have to do all this repetitive and tedious work. And I think that's the greatest value which an AI system can provide to the society."
But some analysts believe job losses are inevitable.
They predict artificial intelligence could replace half of all jobs over the next decade.
Zha Hongbin says manufacturing and transportation will be especially affected, but he suggests the changes will be good for the economy overall.
"There will be some other industries emerging in markets like China. And these emerging industries may employ more people."
On a consumer level, Roobo, the robot company, says most artificial-intelligence gadgets are in their infant stages.
The company has produced three models intentionally designed to look, as it calls them, "cute."
Lei Yu explains the reasoning.
"If you design the interface to look too high-tech or intelligent, the users may have too high expectations. We aim to eventually create a human-like interactive robot, but we can't achieve that yet."
The company's robot-dog prototype will go on the market at the end of the year for more than $1,000.
It is an unaffordable price for most people in China, but the company hopes, within five years, the technology will have advanced enough to push prices down.
For now, the everyday use of artificial intelligence may be well within sight but not quite within reach.
