Chinese Companies Accelerate AI Investments for Future Competitiveness

A report indicates that 87% of surveyed Chinese companies plan to increase AI investments by 2025, driven by the technology’s potential to improve efficiency and competitiveness. The focus is on core infrastructure, with significant expectations for generative AI applications in IT, engineering, and R&D. Chinese firms are increasingly adopting AI tools as they adapt to changing markets, with projections of significant industry growth in the coming years.

Chinese enterprises are rapidly adopting generative artificial intelligence in response to its potential to enhance operational efficiency and maintain competitive edge. A report by Accenture indicates that 87% of businesses surveyed in China intend to increase their AI investment by 2025, while 58% of executives believe their AI development is progressing faster than anticipated.
Current investments focus largely on core technology infrastructure, including AI platforms, data management, and skill development. The primary motivations behind increased AI spending, as cited by executives, include leveraging technological advancements, preserving competitive viability, and bolstering confidence in managing associated risks.
The report outlines that companies plan to implement generative AI mainly in IT, engineering, manufacturing, and R&D, with a significant focus on developing new AI-powered products and services. Generative AI, which involves algorithms generating human-like content from vast datasets, underpins tools such as OpenAI’s ChatGPT.
Research reveals that 77% of employees in China acknowledge that generative AI will impact their roles, with 85% currently using AI-based tools, primarily for data analysis. Nearly 60% of executives anticipate large-scale adoption of generative AI solutions within their organizations this year, reflecting significant growth in the sector.
Yu Yi from Accenture China emphasized the shift towards advanced AI technologies as enterprises adapt to rapidly changing markets. Chinese firms are accelerating their digital transformation efforts amid globalization, leading to increased AI adoption as they seek expansion in international markets.
Market research indicates that China’s AI industry is poised for substantial growth, potentially reaching 1.73 trillion yuan by 2035. Experts anticipate breakthroughs in generative AI technologies and their integration across various fields by 2025. The launch of DeepSeek-R1, a competitive and affordable AI model developed by a Chinese startup, exemplifies this trend.
The performance of DeepSeek’s model aligns with leading technologies from major companies like OpenAI at significantly lower costs, highlighting advancements despite export constraints on AI chips. Pan Helin noted that DeepSeek’s rise illustrates the innovative capabilities of Chinese companies in the AI sector, contributing positively to the global AI ecosystem.
CITIC Securities has noted that despite challenges, domestic AI models have achieved notable advancements due to low costs and open-source advantages, which are expected to further drive AI technology applications across diverse fields.

In summary, Chinese companies are embracing generative artificial intelligence as a strategic investment for enhancing operational efficiency and competitiveness. The Accenture report highlights a significant increase in AI investments, driven by the rapid technological evolution of this sector. Furthermore, the emergence of innovative local AI models like DeepSeek-R1 signifies the advancement of China’s AI capabilities on a global scale. As enterprises seek growth in increasingly complex markets, AI adoption is set to expand across multiple industries.

Original Source: www.ecns.cn


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