China’s AI industry could see US$1.4 trillion in investment in 6 years, executive says

CICC chairman Chen Liang told the International China Investment Forum that China’s AI industry still has significant room for growth

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An AI sign is seen at the World Artificial Intelligence Conference in Shanghai on July 6, 2023. Photo: Reuters

Published: 5:00pm, 9 Sep 2024

China’s artificial intelligence (AI) industry could pour more than 10 trillion yuan (US$1.4 trillion) into developing the technology in the next six years, according to Chen Liang, chairman of the state-backed investment vehicle China International Capital Corporation (CICC).

Chen made the comments on Sunday during a talk at the International China Investment Forum, organised by the municipal government of Xiamen, in northeastern Fujian province, and co-sponsored by CICC. China’s AI market still has significant room for growth and investment, he added.

The CICC estimates China’s AI market demand will be worth 5.6 trillion yuan by 2030.

As in the US, China is experiencing an AI boom as domestic technology companies invest heavily in developing generative AI models, in particular large language models – the technology underpinning chatbots such as OpenAI’s ChatGPT. In an effort to find new productivity gains, the tech is being integrated into traditional industries, including healthcare, legal services, entertainment, and transport and logistics.

More than 237,000 companies related to AI launched in China in the first half of this year, according to a search on corporate data platform Qichacha. The country has around 1.7 million companies registered with AI in their name, patent portfolio or scope of business.