China’s economy boosted by interest in AI and Machine learning

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Consulting firm McKinsey & Co said it expects AI to create an annual economic value that will be equivalent to 3.7% of China’s current GDP.

However, it also admitted that unlocking such potential and value, it will need to make further investments in the business, talent, technology, and data ecosystem models. Additionally, it will also need to maintain standards and regulations.

AI And Machine Learning Could Give China $600 Billion A Year

The consulting firm noted that wider use of artificial intelligence (AI) technologies in autonomous vehicles, medical research, industrial processes, and other applications will be needed to create an economic value of $600 billion a year for China. However, there needs to be an equivalent amount of investment to provide such a windfall.

McKinsey added that AI-enabled systems like machine learning and facial recognition are capable of reducing costs and improving economic output. They will come in handy for technology, financial, and manufacturing companies to use them in products, processes, and services.

The global consultancy also noted that to unlock the full potential of the AI opportunities, a significant investment that is likely much more than what the leaders expect will be required.

There will be investments needed in several areas, with the majority of the costs coming to technologies and data. These will introduce the right talent and underpin AI technology to build the right system.

Additionally, partnerships and new business models are required to create data ecosystems that will be in line with the adherence to regulations and maintaining industry standards.

China Among The Top Three Countries Leading In AI Adoption

Research firm IDC recently provided data from recent research, showing that China’s AI software market surged b 43.1% year-over-year (YoY) to $5.3 billion in 2021. The annualized growth of the market is likely going to stay around 34% between 2021 and 2026, according to the research.

Stanford University’s AI Index also assessed China’s AI system and ranked it among the top three countries for global AI enthusiasm. The country has invested heavily in AI and could be yielding the result soon. At the moment, the tech, retail, and finance sectors are topping the charts for AI adoption on the mainland.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.