China Generative AI Market | Analysis 2019-2032

CHINA GENERATIVE AI MARKET SNAPSHOT

• The China generative AI is forecasted to reach US$ 63.41 billion in 2024, with an expected Compound Annual Growth Rate (CAGR) of 33.11% from 2024 to 2032.
• In China, the leading segment by component is projected to be hardware with a market value of US$ 315.82 billion in 2032.
• By end user, 36.10% of the total market size in the Chinese generative AI is expected to be contributed by IT and Telecom end user by 2032.
• Throughout the forecast period, the IT and Telecom sector is expected to experience the most rapid expansion in terms of revenue generation, with a 33.78% Compound Annual Growth Rate (CAGR).

CHINA GENERATIVE AI MARKET OUTLOOK

The recent significant advancements in machine learning models have sparked enthusiasm for the future of AI, alongside concerns about potential repercussions. In China, where the tech sector closely monitors Western progress, entrepreneurs, researchers, and investors are actively seeking opportunities in the generative AI domain. Tech companies are developing tools based on open-source models to appeal to both consumer and enterprise markets, while individuals are capitalizing on AI-generated content. Regulators are swiftly defining guidelines for the appropriate use of text, image, and video synthesis technologies. Additionally, U.S. tech sanctions are prompting concerns regarding China's ability to maintain pace with AI advancements.

China's regulatory approach to AI is gaining global attention due to its proactive stance. Since 2021, the Chinese government has implemented targeted regulations, addressing recommendation algorithms, deep synthesis, generative AI, and facial recognition, with discussions underway for a comprehensive national AI law. The finalized Interim Measures for the Management of Generative Artificial Intelligence Services, jointly approved by seven major government agencies such as the Cyberspace Administration of China and the Ministry of Science and Technology, effective from August 15, 2023, aim to regulate generative AI, focusing on content generation. The country has enacted this rule to encourage the standardized development of GAI and ensure both national security and social interests at the same time. Such regulations reflect Beijing's efforts to address the societal implications of generative AI and emphasize alignment with social morality and ethics, in accordance with Chinese laws.

CHINA GENERATIVE AI MARKET TRENDS AND DEVELOPMENTS

Questions have arisen regarding the ability of private companies to sustain expansion amidst AI regulations. Concerns have been raised about the impact of China's internet firewall on data accessibility for training AI models, potentially hindering development progress. However, there is a notable shift towards supporting Chinese startups in developing their own generative AI applications. For instance, in June 2023, the Beijing Academy of Artificial Intelligence (BAAI) introduced Wu Dao 3.0, a series of open-source Large Language Models (LLMs), aimed at facilitating easier adoption of generative AI by companies. This emphasis on practical AI application is evident in the move to open-source models, fostering collaboration and boosting AI development in China. Major internet companies like Alibaba, Baidu, and JD have already launched AI bots to compete with OpenAI's ChatGPT.

This research report on India generative AI market would be produced using first-hand market information gathered from industry experts and major participants across the value chain, during primary research. It would provide broad view of current market trends, growth factors and competitive analysis.

CHINA GENERATIVE AI MARKET COVERAGE