Amid DeepSeek Frenzy, Chinese Companies Detail Use of AI

The meteoric rise of DeepSeek, a Chinese AI startup, has captured global attention and sparked a frenzy in the tech industry. As the company's open-source and cost-effective AI model, DeepSeek-R1, rivals leading models from tech heavyweights like OpenAI, Chinese companies are detailing their use of AI to capitalize on the growing demand for AI-powered products and services in various industries.

According to a report by Accenture, 87% of surveyed Chinese companies plan to ramp up AI investment in 2025, with a focus on core technology infrastructure and data, such as AI platforms, cloud and data management, and talent and skills development. This strategic approach to AI investment is driven by the desire to capitalize on advances in technology, maintain business competitiveness, and manage associated business risks.

The top three areas in which Chinese companies plan to implement generative AI in 2025 are information technology, engineering and manufacturing, and research and development. By investing in these areas, Chinese companies aim to create new AI-powered products or services, which will help them stay competitive in the rapidly evolving market landscape.

Moreover, Chinese enterprises have sped up digital transformation in their globalization push, with more generative AI technologies being adopted amid efforts to expand their footprint in overseas markets. This strategic approach to AI investment and adoption positions Chinese companies to capitalize on the growing demand for AI-powered products and services in various industries, both domestically and internationally.

The market research company CCID Consulting estimates that China's AI industry will make significant strides in the next 10 to 15 years, with its market scale reaching 1.73 trillion yuan ($237.4 billion) by 2035, accounting for 30.6% of the world's total. This growth potential, coupled with the strategic investments in AI infrastructure and talent development, further solidifies the position of Chinese companies in the global AI landscape.

In addition, the launch of DeepSeek-R1 has demonstrated the growing independent innovation capacities of Chinese companies in the fast-developing AI sector. The performance of DeepSeek's latest model is on par with leading models from tech heavyweights such as OpenAI, but at a fraction of the cost and computing power of its rivals. This breakthrough promotes the evolution of the global AI ecosystem in an open and inclusive direction, as highlighted by Pan Helin, a member of the Expert Committee for Information and Communication Economy.

CITIC Securities also noted that despite the constraints of advanced chips, homegrown AI models have made significant technological progress based on low costs, high performance, and open-source features. This progress will bolster the development of the domestic AI industry and drive the application of AI technology in a more diverse range of fields.

In conclusion, Chinese companies are strategically investing in AI infrastructure and talent development to capitalize on the growing demand for AI-powered products and services in various industries. These investments, coupled with the growing market potential and technological breakthroughs, enable Chinese companies to maintain a competitive edge in the global AI landscape.