McKinsey Predicts China Would Invest Trillions In AI Innovation, Drive Economy Over Next Decade

Chinese companies are set to make substantial investments in artificial intelligence (AI) over the next decade. This could result in trillions of dollars in yearly returns and become a crucial factor for economic growth.

As stated in a South China Morning Post report, the senior partner and chairman of Greater China’s offices at McKinsey & Company, Joe Ngai, said that AI is seen as a critical research area by Chinese firms, especially after the introduction of ChatGPT last year.

Ngai highlighted that AI and digitization are areas where Chinese companies could thrive because of their successful growth in data environments. Since 2021, China has concentrated on its AI sector, considering it as one of seven “frontier technologies” for technological self-sufficiency.

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Violet Chung, McKinsey’s senior partner in Greater China, added "Generative AI could further release US$2 trillion worth of economic benefits in China [each year], on the basis of the traditional AI and advanced analytics technologies.”

McKinsey predicts that by 2030, more than 50% of jobs in China will be automated. This number is expected to rise to 90% by 2050.

However, Beijing’s AI ambitions could face a hurdle due to the U.S. government’s attempts to restrict Chinese companies’ access to American cloud-computing services. While AI development has the potential to transform the economy and industry rapidly, it has also raised concerns about intellectual property rights, privacy, and fraud.

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