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China leads in generative AI adoption despite global competition

In this post:

  • China leads the world in the adoption of generative AI technology.
  • The survey reveals that 83% of Chinese companies are applying generative AI.
  • China is more advanced in the adoption of generative AI technologies, and the U.S. is more advanced in the implementation of these technologies.

China is leading the world in the adoption of generative AI technology, according to a recent study by SAS and Coleman Parkes Research. This comes at a time when the US has been trying to limit China’s technological progression. The survey revealed that 83% of Chinese companies are applying generative AI, while 70% of British and 65% of American firms are doing the same.

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China is leading in generative AI due to constant automated surveillance and increased funding for manufacturing innovation. These investments help to incorporate such systems that enhance production through predictive maintenance and worker safety. 

SAS executive explains how GenAI enhances production 

While explaining the concept of GenAI technologies, Bryan Harris, SAS’s chief technology officer, indicated that the technologies assist in the identification of anomalies to generate automated alerts for the normal functioning of systems. 

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According to Udo Sglavo, vice president of applied AI and modeling research and development at SAS, China has an advantage in integrating continuous automated monitoring in its manufacturing systems to enhance performance and productivity. This capability includes natural language interfaces and automated notifications, which equally help in boosting productivity and safety. 

“Predictive maintenance and worker safety systems are good examples of places where continuous automated monitoring would be incorporated.“

Udo Sglavo

While China is more advanced in the adoption of generative AI technologies, the U.S. is more advanced in the implementation of these technologies. According to the research that included 1600 business decision-makers from different sectors, 24% of the U.S. companies have completely deployed GenAI, while 19% of the companies are from China and 11% from the U.K. 

Government policies drive high AI usage in China

Stephen Saw of Coleman Parkes Research & Consulting said that increases in the actual adoption level do not automatically translate into a positive impact. The US approach to generative AI, which focuses on innovation and regulation, ensures that the positive effects of AI technologies are felt in business and society.

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According to the findings of the study, generative AI is applied mainly for content generation in marketing and customer service functions in organizations. Harris stated that the high usage in China can be attributed to the effective government policies that require the integration of AI.  

China is still limited in its access to technology developed in the US or by US-based companies, including high-end semiconductor chips from Nvidia. According to data from the United Nations World Intellectual Property Organization, China is the most active in filing generative AI patents, with over 38,000 patents filed between 2014 and 2023, while the United States filed 6,276 patents. 

In addition, four Chinese startups in the generative AI space have become unicorns with a valuation of over $1 billion. Also, the Chinese e-payment application AliPay has adopted generative AI to improve its services, such as identifying when the users are balding. 


Cryptopolitan reporting by Brenda Kanana

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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