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Chinese companies are leading the way in experiments with generative artificial intelligence but still lag behind the United States in full implementation, one company said. new survey.
The survey, conducted by AI analytics and software developer SAS Institute and market researcher Coleman Parkes, found that 64% of Chinese companies surveyed are conducting preliminary experiments with generative AI but have not yet integrated it into their systems. The technology is fully integrated into its business systems.
In comparison, 58% of UK companies and 41% of US companies are still conducting trials.
Survey respondents are GenAI strategy or data analytics decision makers at 1,600 organizations around the world, across key sectors such as banking, insurance, retail and healthcare.
The United States leads the way in integrating GenAI into business processes, with 24% of companies having fully implemented the technology, compared with 19% in China and 11% in the United Kingdom.
Adoption in the survey refers to experimentation and full implementation.
Chinese organizations are leading the way in the adoption of generative AI, with 83% either conducting preliminary tests or having fully implemented the technology. This is much higher than the 70% in the UK, followed by the US at 65% and Australia at 63%.
Stephen Saw, managing director at Coleman Parkes, said: “While China may be leading the way in GenAI adoption, higher adoption does not necessarily equate to effective implementation or better returns.”
Udo Sglavo, vice president of research and development for applied artificial intelligence and modeling at SAS, said that in order to fully realize the advantages of generative artificial intelligence, it must be fully integrated into company-wide production systems and processes.
The U.S.-China Ecosystem
SAS’s Sglavo said the United States has some advantages in integrating generative AI, including a more mature ecosystem and a large pool of highly skilled AI professionals and researchers.
He added that the country has a “culture of innovation”, strong AI leadership from private companies and a predictable and transparent regulatory environment compared to other regions.
Nonetheless, the survey shows that China is well-positioned to catch up in terms of full implementation and maturity.
Chinese respondents are most confident in their preparedness to comply with AI regulations, with nearly one in five saying they are fully prepared, compared with 14% in the United States
Some 31% of Chinese respondents surveyed said they did not have the right tools, and only 21% said they lacked the in-house expertise to do so.
Artificial intelligence experts have previously told CNBC that China is at the forefront of rolling out artificial intelligence technology Research into generative AI regulations began even before OpenAI’s Chat GPT became popular, making the technology mainstream by 2022.
Chinese regulators are also working to combat the possibility of generated AI creating content that could violate Beijing’s ideology and censorship policies.
While this has made Chinese tech companies more cautious about launching their own services like ChatGPT, it has also prompted them to focus on enterprise and narrow uses of generative AI.
This has given China a global dominance in generative artificial intelligence patents, filing more than 38,000 patents from 2014 to 2023, a United Nations report last week showed.
At the same time, Sgraver said China’s huge population and rapidly growing digital economy mean there is high demand for these artificial intelligence technologies.
“This high demand has prompted enterprises to rapidly adopt and integrate GenAI solutions, including applications in e-commerce, healthcare, education and manufacturing, where artificial intelligence is used to improve efficiency and innovation,” he said.
Beijing has also launched several measures aimed at boosting domestic AI use and infrastructure. In May, the country Three-year plan launched Strengthen artificial intelligence chips and generate artificial intelligence standards to build national artificial intelligence computing power.
Sgrave added: “With the Chinese government’s focus on AI, Chinese companies are following this guidance and rapidly adopting aspects of AI within their organizations.”
Prospects for Generative Artificial Intelligence
Overall, the survey highlights how important the use of generative AI is becoming across all regions and industries.
The study found that organizations using generative AI are making significant progress, with about 90% reporting increased satisfaction and about 80% saying they are saving operating costs.
To take advantage of these advantages, about one in 10 global enterprises will devote a budget specifically to generative AI in the next financial year, with the Asia-Pacific region having the highest proportion at 94%, the report said.
Wei Sun, senior consultant for artificial research at Counterpoint Research, told CNBC’s ““Street Signs Asia” reported last week that the United States surpassed China in the first round of artificial intelligence in terms of progress in artificial intelligence chips and basic large language models.
However, she added that the second round will be about technological innovations that provide more specific data sets and applications for consumers, businesses and industries.
According to a 2023 McKinsey report, generative AI can add the equivalent of $2.6 trillion to $4.4 trillion in value per year to 63 business use cases.
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