Recent product releases show that Chinese companies are advancing their artificial intelligence (AI) models. According to Gartner, 10% of businesses in China now use generative AI, up 2% from six months ago. Experts believe that China’s AI sector can now compete with the US.
According to several reports, DeepSeek API pricing is 27 times cheaper than ChatGPT. Moreover, with DeepSeek being open source, users can access the AI without the need for the cloud. This feature has made ChatGPT seem less superior.
However, China’s regulation on AI differs from the US, as Baidu’s Ernie bot only became available one year after ChatGPT’s release. Alex Lu, LSY Consulting’s founder, stated that integrating AI into applications is easier.
His team is developing an AI tool that provides insights, but their challenge lies in gaining access to proprietary data and using AI-generated content commercially. A business CEO noted that multinational corporations are more cautious due to legal concerns.
Some Chinese AI applications are also gaining traction overseas, such as Accio, an AI-powered product-sourcing tool used by 500,000 small businesses. Mike McClary, CEO of amazing.com, stated that Accio has reduced research time from weeks to just a day.
The development of Chinese AI applications leads to new features that integrate with domestic smartphones, something that Apple was unable to do with its AI Intelligence on iPhone due to rules and regulations from the Chinese government.
