China’s leading technology companies are rapidly integrating artificial intelligence (AI) into their services, transforming how millions of people interact, learn, and work online. The incorporation of AI, especially in social media, education, and workplace tools, is significantly changing China’s digital economy. Experts believe this trend could redefine commerce and consumer behavior across the country by leveraging large language models (LLMs) and generative AI (GenAI).
An industry expert said, “AI may become the lifeblood of their ecosystems. AI’s ability to analyze vast amounts of data in real time allows for hyper-personalized ad targeting.”
In 2020, China’s digital marketplace was bustling with activity from over 710 million online shoppers, generating an impressive $2.29 trillion in sales. A report by QuestMobile shows that tech firms have greatly expanded AI-driven features across their service offerings, taking advantage of the fast development of LLMs.
These companies are set to benefit the most by integrating AI into products with large user bases. Alibaba’s FinTech affiliate, Ant Group, has found success with its “intelligent financial assistant” Zhixiaobao, which had nearly 60 million users at the end of June, according to QuestMobile. Baidu has been incorporating its Ernie LLM into various services, including its search engine and online document-sharing service Wenku.
AI drives China’s digital economy
Chinese officials recently announced that more than 600 million people in mainland China now use large language models, representing nearly half of the country’s population. The Cyberspace Administration of China (CAC) has approved several models that power apps and services in 20 main areas, such as emotional companionship, artistic creation, online shopping, and financial services.
Beyond social media and finance, AI is reshaping office collaboration tools, potentially increasing productivity across China’s business sector. An industry expert mentioned, “Chinese tech giants are developing AI-enhanced tools that can automate mundane tasks, predict project bottlenecks, and even draft reports.”
The adoption of AI in education could have far-reaching effects on China’s future workforce and global competitiveness. “China’s strategic focus on AI in education is about leapfrogging ahead,” said the expert.
However, the technology has its challenges. GenAI is known to produce false information, and in China, it can generate politically sensitive content. As a result, the country requires government approval for the public release of LLMs.
As Chinese tech giants continue integrating AI across their platforms, the country seems poised for a digital transformation that could reshape its economy and global influence. The race to harness AI’s potential is on, and China’s tech sector is moving ahead quickly, with implications that extend far beyond its borders.
