I got this problem in the book Topics in the Theory of Numbers by Paul Erdos and Janos Suranyi and I found it very interesting. I have no idea how to prove this. (Although I believe it can be proved by a lot of methods.)
All I could conclude was the following:
- If $A$ and $B$ are two numbers, this method sums the quantity $[\frac{A}{2^i}]\cdot2^iB$ only when the greatest integer function has odd value. (There will be only a finite number of terms as $[\frac{A}{2^i}]$ will eventually become $0$ after some $i>i_0.$)
- I also tried writing $A$ and $B$ in the form as $A= \sum_{i=0}^{n} a_i\cdot10^i$ and $B= \sum_{j=0}^{m} b_j\cdot10^j$ but could not reach to any conclusion.
Any sort of help is appreciated.
Also, I would like to know how efficient is this method for calculating the product of two numbers in computer algebra systems (for example PARI/GP) compared to the other methods currently being used?

That is essentially writing the first number in binary:
$\begin{equation*} A = \sum_i a_i \cdot 2^i \end{equation*}$
The $a_i$ are 1 whenever the respective row's number under $A$ is odd. As you observe, this adds in $2^i B$, if $a_i = 1$, so:
$\begin{equation*} S = \sum_i a_i \cdot 2^i \cdot B = A \cdot B \end{equation*}$