AI in China could add $600 billion to its economy

Considerable piece from McKinsey .... 

The next frontier for AI in China could add $600 billion to its economy

Artificial intelligence could disrupt transportation and other key sectors in China, adding significant economic value to its economy by 2030.  .... '

By Kai Shen, Xiaoxiao Tong, Ting Wu, and Fangning Zhang

The next frontier for AI in China could add $600 billion to its economy

By 2030, AI could disrupt transportation and other key sectors in China, adding significant economic value—but only if strategic cooperation and capability building occur across multiple dimensions.

In the past decade, China has built a solid foundation to support its AI economy and made significant contributions to AI globally. Stanford University’s AI Index, which assesses AI advancements worldwide across various metrics in research, development, and economy, ranks China among the top three countries for global AI vibrancy.1 On research, for example, China produced about one-third of both AI journal papers and AI citations worldwide in 2021. In economic investment, China accounted for nearly one-fifth of global private investment funding in 2021, attracting $17 billion for AI start-ups.2

Five types of AI companies in China

Today, AI adoption is high in China in finance, retail, and high tech, which together account for more than one-third of the country’s AI market (see sidebar “Five types of AI companies in China”).3 In tech, for example, leaders Alibaba and ByteDance, both household names in China, have become known for their highly personalized AI-driven consumer apps. In fact, most of the AI applications that have been widely adopted in China to date have been in consumer-facing industries, propelled by the world’s largest internet consumer base and the ability to engage with consumers in new ways to increase customer loyalty, revenue, and market valuations.

So what’s next for AI in China?   ..... '