Kai-Fu Lee, the former president of Google China, predicts that AI-powered applications will gain widespread adoption in China more quickly than in the US.
While Chinese AI models currently lag behind the US by about six months, they could soon surpass them in terms of usage.
According to Lee, some of China’s less advanced AI models are approximately 15 months behind those in the US. Regardless, the leading large language models (LLMs) being developed by Chinese companies are only six to nine months behind.
CNBC reports show that Lee shared these insights during China’s AVCJ Private Equity Forum.
China’s AI Growth: Lee Predicts Faster Adoption and Innovation Despite US Lead
Kai-Fu Lee expressed confidence that AI applications in China could soon surpass their US counterparts in adoption and innovation. Notably, Lee is also the founder of the AI startup 01.AI and the venture capital firm Sinovation Ventures.
Lee pointed out that the rapid advancements in AI technology and infrastructure are key factors driving this potential shift. The noticeable decrease in the cost of training AI models is also an advantage.
Over recent months, the expense of training complex AI models, such as Large Language Models, has dropped considerably. This has made it easier and more affordable for Chinese companies to scale their AI efforts.
Lee also highlighted that China’s unique tech ecosystem, massive data resources, robust manufacturing sector, and strong government backing for AI initiatives provide an environment for AI-powered applications to flourish.
The US has long been leading in AI development, especially in cloud computing and software. Nonetheless, Lee believes China’s competitive edge lies in its ability to commercialize new technologies and integrate them into everyday life.
Given the reduced costs and growing expertise within China, Kai-Fu Lee believes that AI innovations could be deployed more widely. It would also spread faster than the US, where regulatory and infrastructural hurdles might slow mass adoption.
According to him, the number of AI-powered applications will increase significantly faster in China than in the US by early next year.
However, despite this optimistic outlook, Lee acknowledged some uncertainties regarding who will lead this wave of AI app development. It is not clear whether the breakthrough apps will emerge from smaller startups or larger, well-established firms.
China’s Vision for the Future of Consumer Technology and Leading Tech Investments
The former president of Google in China also commented on the long-term vision for AI’s impact on consumer technology. He suggested that it could take five to eight years before AI capabilities mature to the point of being integrated into a “super app.” A super app is a single application that performs various tasks.
Lee’s remark about permanently observant AI devices followed the July launch of the “Friend” necklace, an AI-powered wearable designed as a virtual companion. This device, which constantly listens to its wearer, exemplifies the shift toward AI technology that is always present and responsive.
Like the US, China’s AI sector has attracted significant attention from major tech companies. Leading firms like Alibaba and Tencent have developed multiple AI models and applications while investing heavily in smaller AI startups.
Tencent launched its large language model called “Hunyuan” in September last year, positioning it as a competitor to OpenAI’s ChatGPT.
Since its debut, Hunyuan has been integrated across Tencent’s ecosystem, enhancing services in cloud computing, marketing, and gaming.
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