China's tech advances boon for global firms

China is emerging as an innovation-centric economy, with technological advances setting the stage for global shifts, while foreign companies can leverage their expertise around the world to help Chinese businesses bolster digital transformation, said Samantha Zhu, chairperson of Accenture Greater China.

"For businesses in China looking to boost their productivity and maintain competitiveness, technologies led by artificial intelligence present an unprecedented opportunity to create value, respond dynamically to change and build resilience," Zhu said in a recent exclusive interview with China Daily.

"The recent progress in the wave of AI-led innovation is very encouraging as companies quickly pick up the signal and mobilize themselves to harness the use of such technologies. We anticipate more innovation and application happening across industries and functions, from R&D to manufacturing, from customer interfaces to warehousing, from upskilling to sustainability."

Now it is a pivotal moment for both Chinese and foreign companies to drive productivity and growth, boldly innovate and position themselves at the forefront of the next wave of change, Zhu said, adding that Accenture has been strengthening capabilities in data and AI, and expanding practices in key areas like high-tech and life sciences.

The consultancy estimates that adopting a holistic approach to productivity, with generative AI acting as a multiplier, could boost companies' productivity growth from 1.9 percent to 15.9 percent. While investments in AI continue to grow, it's important for companies to harmonize technology and human staff members to fully realize the power of reinvention that AI provides.

It is noteworthy that Chinese companies are accelerating the adoption of generative artificial intelligence. According to a report from Accenture, 87 percent of surveyed Chinese companies plan to ramp up AI investment in 2025 — a year of rapid change — while 58 percent of the interviewed business executives in China feel that their enterprises' AI development is proceeding faster than expected.

Chinese enterprises' current investment in generative AI is mainly focused on core technology infrastructure and data, like AI platforms, cloud and data management, and talent and skills development, the report said.

The top three reasons for higher investment in generative AI are capitalizing on advances in the technology, maintaining business competitiveness and increasing confidence in managing associated business risks. The report interviewed 790 company executives and 687 employees in 22 industries across the Asia-Pacific region.

The nation's AI sector will make great strides in the next 10 to 15 years, with its market size reaching 1.73 trillion yuan ($238.4 billion) by 2035, accounting for 30.6 percent of the global total, said market research firm CCID Consulting.

Zhu also said she believes that the country's policy measures to further accelerate innovation and boost productivity, expand market access for foreign investors in key industrial sectors, lift restrictions and improve services will help the country deliver broad-based growth in a sustainable way.

"We believe the experiences China has gained from past reforms and its determination to continue leading high-quality growth will give the country a strong start in the years to come."

She said foreign firms, together with their Chinese counterparts, will be able to make the best use of their innovations and practices to improve returns on investment and achieve incremental growth.