China is the world leader in GenAI testing, but lags behind the US in deployment.
An artificial intelligence concept showing a businessman working with a virtual screen
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Chinese companies are leading the way in experimenting with generative AI, but they still lag behind the United States when it comes to full deployment, according to a new survey.
The survey, conducted by the SAS Institute for AI Software Development and Analytics and market research firm Coleman Parkes, found that 64% of Chinese companies surveyed are conducting initial experiments in generative AI but have yet to fully integrate the technology into their business systems.
Meanwhile, 58% of companies in the UK and 41% in the US are still experimenting with this approach.
Survey respondents were decision makers on GenAI strategy or data analytics at 1,600 organizations worldwide across key sectors, including banking, insurance, retail and healthcare.
The US tops the list in terms of integrating GenAI into business processes, with 24% of companies having fully deployed the technology — compared to 19% in China and 11% in the UK.
The implementation includes both testing and full implementation in the survey.
Chinese organizations are leading the way in adopting generative AI, with 83% of them running early trials or having fully deployed the technology. This is much higher than the UK at 70%, followed by the US at 65% and Australia at 63%.
“While China may be leading in terms of GenAI adoption rates, higher adoption does not necessarily translate into more efficient deployment or better returns,” said Stephen Saw, managing director at Coleman Parkes.
To fully exploit the benefits of generative AI, the technology must be fully integrated into manufacturing systems and processes at an enterprise-wide level, according to Udo Sglavo, vice president of AI R&D & Applied Modeling at SAS.
US vs. China Ecosystem
According to SAS’s Sglavo, the United States has several advantages in integrating generative AI, including a more mature ecosystem and a large pool of highly qualified AI experts and researchers.
The country has a “culture of innovation,” strong leadership in AI from private companies, and a transparent and predictable regulatory environment compared to other regions, he added.
However, the survey indicates that China is well positioned to catch up in terms of implementation and maturity.
Respondents in China were most confident in their preparedness to comply with AI regulations, with nearly one-fifth saying they were fully prepared, compared with 14% in the United States.
Among the Chinese surveyed, about 31% said they did not have the right tools and only 21% said they lacked the internal expertise to do so.
AI experts previously told CNBC that China is at the forefront of deployment. AI regulation createsresearched them even before OpenAI’s Chat GPT became popular and brought the technology to mainstream use in 2022.
Chinese regulators have also worked to smash about the potential for AI to generate content that could violate Beijing’s censorship and ideological policies.
While that has made Chinese tech companies more cautious about launching their own ChatGPT-like serviceIt also pushes them to focus on narrow business and AI applications.
This has contributed to China’s dominance in the global race. artificial intelligence patentsfiled more than 38,000 patents between 2014 and 2023, a United Nations report said last week.
Meanwhile, China’s large population and rapidly growing digital economy mean demand for these AI technologies is high, according to Sglavo.
“This high demand has driven companies to rapidly adopt and integrate GenAI solutions – including applications in e-commerce, healthcare, education and manufacturing – where AI is used to improve efficiency and innovation,” he said.
Beijing has also pushed out some Initiative to promote AI in the country use and infrastructure. In May, the country has come up with a three-year plan to enhance standards in AI chips and AI creation and build national AI computing power.
“As the Chinese government focuses on AI, Chinese companies are following that lead by rapidly adopting many aspects of AI into their organizations,” Sglavo added.
The prospect of artificial intelligence
Overall, the survey highlights the importance of using AI in every sector and industry.
The study found that organizations adopting generative AI are seeing significant improvements, with about 90% reporting improved satisfaction and about 80% saying they are saving on operational costs.
To tap into these benefits, around 1 in 10 global businesses will budget for generative AI in the next fiscal year, the report said – led by Asia-Pacific at 94%.
Wei Sun, senior advisor for artificial intelligence research at Counterpoint Research, told CNBC “Asian Street Signs“last week that The United States has surpassed China in the first round of AI in terms of AI chips and the development of the basic large language model.
However, she added that the second round will focus on innovating the technology to have more specific data sets and applications for consumers, businesses and industries.
According to McKinsey’s 2023 report, AI-generated products could add the equivalent of $2.6 trillion to $4.4 trillion Annual value across 63 business use cases.
