China’s AI industry is experiencing a boom, with generative artificial intelligence (AI) predicted to contribute 30 trillion yuan ($4.2 trillion) worth of economic value to the country by 2035. This forecast was made in a report by a Beijing think tank affiliated with China’s industry ministry. Notably, the report states that China’s generative AI market is expected to reach 10 trillion yuan this year alone as adoption rapidly expands across traditional industries.
The adoption rate of generative AI in China currently stands at around 15 percent, according to the research unit affiliated with the Ministry of Industry and Information Technology (MIIT). The four major areas driving the application of generative AI technologies in China are manufacturing, retail, telecoms, and healthcare. Zhou Debao, an AI analyst for the CCID Group, highlighted that the retail and telecoms industries currently lead in AI adoption, followed by healthcare and manufacturing.
The launch of OpenAI’s ChatGPT bot in late 2022 sparked a surge in similar AI technologies in China. Big Tech companies such as Baidu, Tencent Holdings, ByteDance, and AI specialists SenseTime and iFlyTek have all joined in and introduced their own offerings for the domestic market. These companies have been piloting the use of AI within their organizations and promoting its ability to enhance efficiency.
Tencent, for instance, claims that its Hunyuan model has already been employed in over 180 services, including its conferencing app Tencent Meeting, web-based word processor Tencent Docs, online advertising business, and WeChat search. The Chinese AI industry is also witnessing an influx of new players, with more than 368 AI-related startups emerging this year alone—equivalent to an average of more than one new AI company per day.
China’s commitment to AI development is clearly evident, as it aims to become a global leader in the field. Xu Xiaolan, vice-minister at MIIT, revealed that as of July, China already had over 4,300 AI firms. With the continued growth and adoption of generative AI technologies, it is reasonable to expect that China will play a crucial role in shaping the future of AI on a global scale.
The impact of China’s AI boom extends beyond its domestic market. As generative AI continues to evolve and advance, it will contribute significantly to the global economy, reaching an estimated value of 90 trillion yuan by 2035. This prediction underscores the importance of AI technology and its potential to transform industries and drive economic growth.
In conclusion, China’s AI industry is on a trajectory of exponential growth. With generative AI expected to contribute trillions of dollars to the country’s economy and numerous startups emerging daily, China is well-positioned to shape the future of AI. As other countries continue to invest in AI development, it is clear that the global economy will be significantly influenced by the advancements made in this field.
Sources:
- “China’s AI Boom: Generative AI to Contribute $4.2 Trillion to Global Economy by 2035” (source)
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