China Races Ahead in AI Adoption, Lags in Implementation

Recent research confirms China to be the world leader in AI investment and usage, but the US is still at the forefront of the technology’s full adoption.

According to a recent survey conducted by SAS and Coleman Parkes Research, China is at the forefront of global usage and investment in generative artificial intelligence (AI) technology.

The US-based AI and analytics software provider released information from a study of 1,600 decision-makers across various international sectors on July 9. According to the survey, 83% of Chinese participants acknowledged utilizing generative AI.

While the United States is a global leader in developing powerful AI models, only 65% of respondents in that country have used generative AI, and 70% of respondents in the United Kingdom have done so.

The global average was 54%, with the majority of the variation occurring in sectors including banking, insurance, healthcare, telecommunications, retail, manufacturing, and energy.

Adoption as opposed to Execution

The managing director of Coleman Parkes, Stephen Saw, stated that higher adoption rates in China sometimes translate into better implementation outcomes or higher profits.

China does not lead the world in fully integrated generative AI, but it is a leader in applying some technologies. The United States leads the world in this sector with 24%, followed by China (19%) and the United Kingdom (11%).

Any new technology passes through a “discover phase,” according to SAS senior vice president and chief technology officer Bryan Harris. During this time, enterprises must sort through hype from reality to determine how to adopt it best.

He claimed that the stage has been reached in the generative AI cycle.

“As we exit the hype cycle, it is now about purposefully implementing and delivering repeatable and trusted business results from GenAI.”

Access to American-developed technology and that of American-based businesses, such as high-power semiconductor chips made by Nvidia, the industry leader, still needs to be expanded nationwide.

China is optimistic about AI.

Data, however, indicates that China is still very optimistic about AI. According to a report published by the World Intellectual Property Organization of the United Nations, China topped the list of countries that filed patents relating to generative AI.

The nation submitted more than 38,000 technology-related patents in the ten years between 2014 and 2023, whereas the United States filed only 6,276.

Four Chinese generative AI businesses had achieved unicorn status, with valuations of more than $1 billion per.

Additionally, China has integrated generative AI into AliPay, an e-payments app that purportedly can recognize user baldness.