Chinese Companies Accelerate Investments in AI Technology

Artificial intelligence-aided robots are seen sorting products at a logistics center of a garment company in Huzhou, Zhejiang province. This reflects how Chinese companies are embracing the potential of this transformative technology.

According to a report by the global consultancy firm Accenture, Chinese companies are significantly increasing their investments in generative artificial intelligence (AI). This technology provides a substantial opportunity for businesses to improve operational efficiency, remain competitive, and adapt to the evolving challenges of the business environment.

The report reveals that 87 percent of surveyed Chinese companies plan to increase their AI investments by 2025, viewing it as a crucial year for rapid transformation. Additionally, 58 percent of interviewed executives believe that their companies' advancements in AI are occurring faster than anticipated.

Currently, the investments in generative AI by Chinese enterprises predominantly focus on developing core technology infrastructure and data management capabilities. This includes enhancing AI platforms, cloud services, and training in necessary skills and talent.

Executives cited three primary motivations for boosting AI investments: leveraging technological advancements, maintaining a competitive edge, and increasing confidence in managing the associated risks of AI deployment.

The primary sectors where companies plan to implement generative AI by 2025 include information technology, engineering and manufacturing, as well as research and development. The executives emphasized that a major focus of their investment will be the creation of innovative AI-powered products and services.

Generative AI refers to advanced algorithms that utilize vast amounts of data to generate content across various mediums, such as images, text, audio, and video, in ways that closely mimic human creativity. This is the technology that powers applications like OpenAI's ChatGPT.

Furthermore, the report highlights that in China, 77 percent of employees expect their jobs to be impacted by generative AI. Approximately 85 percent of respondents in the workforce are currently using AI-based tools, with 63 percent having employed these tools for over a year—primarily for data analysis tasks.

Almost 60 percent of business leaders in China anticipate widespread adoption of generative AI within their organizations this year, marking a significant increase compared to 2024.

The research included insights from 790 company executives and 687 employees across 22 industries in the Asia-Pacific region.

According to Yu Yi, a technology lead at Accenture China, companies are rapidly adopting state-of-the-art AI technology to stay ahead in increasingly competitive markets. He noted that the rate at which Chinese companies are increasing their investments and applying AI technologies is on the rise.

Yu pointed out the acceleration in digital transformation among Chinese enterprises, particularly as they seek to enhance their international presence through the adoption of generative AI.

CCID Consulting's data indicates that China's AI sector is poised for substantial growth over the next decade, with projections estimating the market's value at 1.73 trillion yuan ($237.4 billion) by 2035, representing over 30 percent of the global AI market.

Industry analysts predict notable technological advancements in China's generative AI by 2025, along with greater integration across various fields.

Recently, the launch of DeepSeek-R1, an open-source and cost-effective AI model from Chinese startup DeepSeek, has garnered significant global attention. This model’s performance rivals that of major players like OpenAI in areas such as mathematics, coding, and natural language processing, all while utilizing significantly less cost and computing resources.

Pan Helin, who serves on the Expert Committee for Information and Communication Economy under the Ministry of Industry and Information Technology, remarked that DeepSeek's rapid emergence highlights the increasing independent innovative capabilities of Chinese tech firms and promotes a more open and inclusive evolution in the global AI ecosystem.

In a research note, CITIC Securities noted that despite the challenges posed by limitations around advanced chips, indigenous AI models have achieved remarkable technological improvements characterized by low costs, high performance, and open-source features. These advancements are expected to foster further growth in China's AI industry and broaden the applications of AI technology across various sectors.

AI, Investment, Technology