IDC: China's GenAI sector investment surges
Driven by rapid technological advancement, China is expected to see a compound annual growth rate (CAGR) of 86.2 percent for generative artificial intelligence (AI) investment between 2022 and 2027, according to a newly released report from Research firm IDC, showcasing the robust prospects of the country's high-tech sector.
Thanks to the government's rising efforts to accelerate high-quality development, China's generative AI spending is set to reach 33 percent of the world's AI investment by 2027, up from 4.6 percent in 2022 with the generative AI investments probably reaching $13 billion, according to the report.
China's performance is outstanding amid overall global growth in the industry, which is projected to reach $512.42 billion by 2027, with a CAGR of 31.1 percent, IDC forecasted in its Worldwide Artificial Intelligence Spending Guide.
The report also underscored China's leading position in AI investment within the Asia-Pacific region, surpassing half of the total investment in the region. As of 2027, China`s AI investment is set to exceed $40 billion, representing a CAGR of 25.6 percent.
Generative AI is poised to become a pivotal technology in enterprise automation. Banking, retail, software, and information services are cited as the top three spenders driving its innovation and growth, collectively constituting nearly a third of the market, according to the report.
Since 2014, China's AI development has been accelerating, driven by the surging application demand within the domestic market. According to an official with the Ministry of Industry and Information Technology (MIIT), China's AI industry output value reached 580 billion yuan ($80.23 billion) in 2023, up 18 percent year-on-year. The number of major AI-related enterprises has exceeded 4,400, ranking second in the world.
China's AI development has been rising rapidly amid the government's ramped-up efforts to develop new quality productive forces. The country has announced a slew of plans to enhance industrial innovation, and accelerate AI-driven manufacturing, led by large language models, to speed up the establishment of a modern industrial system, an official from MIIT said recently.
Related articles
Liverpool confirms Arne Slot as Jurgen Klopp's replacement
Arne Slot will take on one of the most daunting challenges in soccer by replacing Jurgen Klopp as Li2024-05-21World Aquatics Artistic Swimming World Cup 2024 to kick off in Beijing
About 100 elite artistic swimmers from 14 teams all over the world will compete in first leg of the2024-05-21Xie Lijun becomes CSL's first female referee
After taking charge of the match between Shanghai Port and Shandong Taishan in the 2024 Chinese Supe2024-05-21Universal Beijing Resort temporarily closes amid Beijing's increasing COVID
The Universal Beijing Resort announced on Sunday morning that it has started its emergency plan for2024-05-21Devout Christian doctor, 68, who punched dementia
An 'arrogant' doctor who punched a vulnerable patient for making a racist comment and spitting at hi2024-05-21Humanitarian crisis in Gaza exposes Western double standard on human rights
Children sit among the rubble in Gaza City, on Feb. 27, 2024. [Photo/Xinhua]Following the devastatin2024-05-21
atest comment