Chinese companies are embracing artificial intelligence to speed up digital transformation and seek sustainable growth as the fast-evolving technology presents a significant opportunity for enterprises to boost operational efficiency and remain competitive, according to a new report released by global consultancy Accenture.

The report said 46 percent of surveyed Chinese companies are using generative AI at scale, and embedding this cutting-edge technology into a slew of complex scenarios including research and development, design, manufacturing and supply chain management.

The report found that Chinese companies have made great strides over the past year in strengthening their key digital capabilities, with 33 percent of interviewed firms recognizing that the integration of AI and cloud can drive product and service innovation.

Moreover, 53 percent of Chinese companies are using AI to connect and integrate multiple business processes — 11 percentage points higher than the global average level. They are also investing in cloud and cybersecurity as 58 percent of polled enterprises said they are able to quickly update security strategies and tools.

Although Chinese companies are accelerating the adoption of AI, only 9 percent are realizing significant improvements in terms of productivity, revenue and profitability from leveraging the technology, the report said.

This is the eighth consecutive year that Accenture has traced the digital transformation journey of Chinese companies. The study surveyed more than 160 firms in seven sectors this year — high-tech manufacturing, automotive, engineering machinery, consumer goods, retail, chemicals and new energy.

While Chinese companies are increasing investment in technological innovation to enhance their competitiveness amid uncertainties, they need to further harness the power of digital technologies to elevate operational efficiency and tackle challenges from growth pressure and global expansion, Accenture said.

Samantha Zhu, chairperson of Accenture Greater China, said against the backdrop of accelerated changes in the global economic landscape, and mounting volatility and uncertainties, it is vital for Chinese companies to concentrate on innovation and speed up digital transformation, so as to achieve high-quality growth.

"We can clearly see that leading companies have greater resilience in addressing various challenges, thus giving them an edge in adapting to the AI era. In the new wave of technological and business evolution, companies need to take holistic approaches to truly build strong resilience and capabilities, from organizational architecture and working models to governance," Zhu said.

Yu Yi, technology lead at Accenture Greater China, said as innovation emerges as the main force driving business growth, the proportion of Chinese companies that step up investment and promote the application of AI across a wide range of sectors is rising dramatically.

The report suggested that enterprises should systematically integrate AI into their commercial models, strategic decisions and business processes, while optimizing supply chains and utilizing AI to achieve real-time monitoring and rapid decision-making to optimize the allocation of resources.

Pan Helin, a member of the Expert Committee for Information and Communication Economy, which is part of the Ministry of Industry and Information Technology, said the rapid adoption of digital technologies represented by AI will inject fresh impetus into the country's economic growth and speed up digital and intelligent upgrades in enterprises.

Noting that some Chinese enterprises are facing mounting difficulties in the process of digital transformation — such as budgetary shortfalls and inadequate skills training — Pan said these companies should devise long-term plans for digital transformation and continuously pour money into this field.

Li Haitao, dean of Cheung Kong Graduate School of Business in Beijing, said AI is profoundly reshaping the business landscape and is bound to transform various industries.

Li said China boasts a large number of well-educated engineering talent and AI professionals, improved digital infrastructure such as 5G and computing networks, massive amounts of data and ever-increasing innovation capabilities, which provide a solid foundation for the training and adoption of AI models.

source: China Daily

DISCLAIMER: THIS ARTICLE IS FROM THE INTERNET AND DOES NOT REPRESENT THE OPINIONS OF 鹏盛资本PENGSCPA. 鹏盛资本PENGSCPA DO NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE ARTICLE, WHICH IS FOR YOUR REFERENCE ONLY. IF ANYONE SUFFERS DIRECT, INDIRECT OR RELATED LOSSES DUE TO THE USE OF THE MATERIALS IN THIS ARTICLE, 鹏盛资本PENGSCPA WILL NOT BE LIABLE FOR SUCH LOSSES.