China Leads in Generative AI Experimentation, but U.S. Ahead in Implementation, Survey Finds

The survey by SAS Institute and Coleman Parkes indicates that while Chinese companies are leading in generative AI experimentation, the U.S. remains ahead in full implementation and integration of the technology into business processes.

China’s lead in experimentation, but lag in implementation: The survey found that 64% of Chinese companies were running initial experiments on generative AI, compared to 58% in the UK and 41% in the U.S. However, only 19% of Chinese companies had fully implemented the technology, compared to 24% in the U.S.

• Chinese organizations have the highest overall adoption rate (experimentation and implementation combined) at 83%, followed by the UK at 70% and the U.S. at 65%.
• Despite higher adoption rates, China’s lead in experimentation does not necessarily translate to effective implementation or better returns, according to Stephen Saw, managing director at Coleman Parkes.

U.S. advantages in AI ecosystem and integration: The U.S. benefits from a more mature AI ecosystem, a large pool of skilled professionals, a culture of innovation, strong private sector leadership, and a predictable regulatory environment.

• These factors contribute to the U.S. leading in the full integration of generative AI into production systems and company-wide processes, which is key to realizing the technology’s full benefits, according to Udo Sglavo, SAS’s vice president of Applied AI & Modeling Research and Development.

China’s potential to catch up: The survey suggests that China is well-positioned to close the gap in full implementation and maturity of generative AI.

• Chinese respondents were the most confident in their preparation to adhere to AI regulations, with almost a fifth stating they were fully prepared, compared to 14% in the U.S.
• Only 31% of Chinese respondents said they lacked the appropriate tools, and just 21% cited a lack of internal expertise as a barrier.
• China’s large population, rapidly growing digital economy, and government initiatives to boost domestic AI use and infrastructure are driving high demand for these technologies and pushing companies to quickly adopt and integrate generative AI solutions.

Broader implications: The survey underscores the growing importance of generative AI across regions and industries, with organizations reporting significant improvements in satisfaction and cost savings from embracing the technology.

• About one in 10 global businesses plans to dedicate a budget to generative AI in the next financial year, led by the Asia-Pacific region at 94%.
• While the U.S. may have an edge in the current stage of AI development, focusing on foundational models and chips, the next phase of competition will center on innovating the technology for specific applications and data sets across various sectors.
• Generative AI has the potential to add trillions of dollars in annual value across numerous business use cases, making it a critical area of investment and development for companies worldwide.