An employee explains how an intelligent robot works on a production line at Haier's central air conditioning interconnection factory in Qingdao, Shandong province, Nov. 27. Li Ziheng/Xinhua News Agency
According to a report by market consulting firm KPMG, Chinese companies are doubling down on artificial intelligence and technological innovation to accelerate digital transformation, allowing AI to play a key role in business operations and weather changing economic conditions.
The report found that 88% of Chinese CEOs expressed confidence in China's economic outlook, a significant 17 percentage point increase from last year and the highest level in recent years.
The report noted that 26% of Chinese CEOs cite driving business digitization and connectivity as a top strategic priority over the next three years, higher than the global average of 18%.
The value of artificial intelligence applications is beginning to be recognized. 86% of Chinese CEOs expect to see a return on their AI investments within three years, a significant increase from 18% last year. Notably, one in five interviewees expects to achieve profitability within a year.
Furthermore, 55% of CEOs in China prioritize compliance and reporting standards to meet investor and regulatory demands, compared to 51% globally.
“Over the past year, the global economy has continued to recover modestly, and overall trade demand has increased. As geopolitical tensions intensify and trade tensions widen, businesses still face considerable uncertainty in their pursuit of stable growth,” said Jackie Zou, Chairman of KPMG China.
Against this backdrop, China's economy continues to make steady progress despite repeated headwinds. Zou said the gradual rollout of a series of policy measures has effectively raised public expectations.
He noted that Chinese CEOs' recognition of the value of AI has increased significantly, and this increased confidence indicates that the realization of AI's value is accelerating and that this technology is poised to significantly change future industrial competition.
“Looking ahead to the 15th Five-Year Plan period (2026-30), as the national 'AI plus' strategy takes deeper root and the industrial ecosystem continues to mature, the integration of AI and the real economy will accelerate, injecting strong momentum into China's high-quality development.”
However, the accelerated global adoption of AI is creating new challenges. CEOs express concerns about ethical implications (59%), data readiness (52%), and lack of regulation (50%). There is a clear consensus emerging that a robust governance framework is essential to the continued success of AI.
While concerns persist that AI could lead to widespread job losses, 61% of global CEOs say they are actively recruiting new talent with AI and broader technology skills.
In terms of concrete actions, 56% of Chinese CEOs openly communicate with employees about the impact of AI on their roles, higher than the global average of 46%.
Meanwhile, Chinese CEOs are paying particular attention to the medium- to long-term impact of AI on business operations. Specifically, the widespread application of AI in enterprise production and management requires significant upfront investments in computing power, algorithms, and data infrastructure.
According to the survey, 79 percent of Chinese respondents are concerned about the cost of high-tech infrastructure, a higher proportion than the global average.
The study surveyed 1,350 CEOs in 11 major markets across 12 major sectors, including wealth management, automotive, banking, consumer and retail, energy and healthcare, from August to September.
Pan Helin, a member of the Information and Communication Economic Expert Committee, part of the Ministry of Industry and Information Technology, said the rapid adoption of digital technologies, represented by AI, will inject new impetus into the country's economic growth and accelerate the digitalization and intelligentization of traditional industries.
He pointed out that AI is increasingly recognized as a key driver for building resilient supply chains and enabling companies to adapt more quickly to sudden changes and take data-driven, real-time actions.
He said that some Chinese enterprises are facing serious difficulties in the process of digital transformation, such as budget shortages and insufficient skills training, adding that these enterprises need to formulate long-term plans for digital transformation and continuously pump funds into this area.
Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, said further efforts are needed to devote more resources to improving the quality of data for training AI models, optimizing algorithms, and training human resources specialized in the field of AI.
fanfeifei@chinadaily.com.cn
