The centre will delve into AI applications ranging from increasingly "smart" smartphones to robot surgeons and "Terminator" style military droids.
Professor Stephen Hawking, who was due to speak at the centre's launch later today, said: "The rise of powerful AI will be either the best or the worst thing ever to happen to humanity.
"We do not yet know which. The research done by this centre will be crucial to the future of our civilisation and of our species," he said.
A collaboration between the universities of Oxford, Cambridge, Imperial College London, and Berkeley, California, the CFI will see researchers from multiple disciplines work with industry representatives and policymakers on projects ranging from regulation of autonomous weapons to the implications of AI for democracy.
"AI is hugely exciting. Its practical applications can help us to tackle important social problems, as well as easing many tasks in everyday life," said Margaret Boden, a professor of cognitive sciences and consultant to the CFI.
"CFI aims to pre-empt these dangers, by guiding AI-development in human-friendly ways," she added.
Fears of robots freeing themselves from their creators have inspired a host of films and literature -- "2001: a Space Odyssey" to name but one.
But these catastrophic scenarios aside, the development of AI, which allows robots to execute almost all human tasks, directly threatens millions of jobs.
So will AI, which has already conquered man in the games of chess and Go, ultimately leave humans on the sidelines?
"AI will help us to learn about ourselves and our environment -- and could, if managed well, be liberating."
With this in mind, ethics will be one of the key fields of research of the CFI.
"It's about how to ensure intelligent artificial systems have goals aligned with human values" and ensure computers don't evolve spontaneously in "new, unwelcome directions", Cave said.
The opening of the research centre comes at a time when major international groups have competing ambitions in AI.
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