Every sixth internet user in China is using a GenAI product. It's the world's largest internet market, so the number is mindbogglingly high. According to a recent South China Morning Post report, quoting the China Internet Network Information Centre report, the number of generative AI users in the country has reached 230 million.
The Chinese AI landscape is dominated by homegrown tech giant Baidu, whose Ernie Bot commands an 11.5% market share. Surprisingly, OpenAI's ChatGPT and Google's Gemini have carved out 7% and 3.8% shares respectively, despite not being officially available in mainland China.
The Chinese AI ecosystem is booming. More than 300 generative AI products have been registered with the regulator, and over 4,500 AI-related companies are operational in China. As such, the core AI sector has a mind-boggling value of 600 billion yuan (around $83 billion).
Chinese businesses are adopting AI at an unprecedented rate. According to a SAS survey, 83% of Chinese business decision-makers report using generative AI in their organizations, far outpacing the global average of 54%. This adoption is widespread and strategic, as two-thirds of users use AI for answering questions and one-third as work assistants for tasks like generating meeting transcripts and slides.
The report further mentions that the Chinese government is actively encouraging the AI landscape, approving more than one AI model every day over the last six months.
Interestingly, in 2024, the International Monetary Fund (IMF) released an Artificial Intelligence Preparedness Index (AIPI) Dashboard tracking 174 economies globally for AI readiness. China, with an index score of 0.63 ranks 31st. According to the index, the top 5 countries most prepared for AI are Singapore (0.80), Denmark (0.78), the United States (0.77), Netherlands (0.76), and Estonia (0.75). India holds the 72nd position.
As the world is watching, China's AI revolution continues to unfold, promising a reshaping of its digital economy and potentially of the global technological landscape.
The chip war has just gotten intense.