Rapid Advancements in China’s Generative AI Landscape

Over 10% of businesses in China are using generative AI, up from 8% six months ago, marking significant growth in adoption rates. Chinese companies like DeepSeek and ByteDance are rapidly developing AI models to compete with OpenAI’s ChatGPT, with Baidu’s generative AI-integrated Wenku platform reaching 40 million paying users and reporting a 60% revenue increase year-over-year. The development of AI applications is moving beyond chatbots to include advanced features, such as automated presentations based on financial data, with Tencent planning to integrate AI agents into its WeChat app. A growing consumer preference for local Chinese brands is evident, as smartphone manufacturers like Honor, Xiaomi, and Vivo enhance AI functionalities while reducing dependence on cloud services. The regulatory environment in China presents challenges, as seen with Baidu’s Ernie bot receiving approval nearly a year after ChatGPT’s launch, although using AI in applications is less stringent. Companies face hurdles in providing AI access to proprietary data and navigating compliance issues, particularly multinational corporations. Meanwhile, Alibaba’s Accio has gained 500,000 small business users, showcasing the international reach of China-created AI applications and demonstrating a significant reduction in product sourcing research time.

Source: CNBC