Size of the AI market in China 2016-2024

In 2023, the size of the Chinese AI market amounted to over 213 billion yuan. Since 2016, the market size has increased significantly. On the background of international competition, the Chinese government strived to make the country a leader in AI technology, designating the sector as a key industry of strategic importance. 

The foundation of AI

To apply artificial intelligence in the real world, AI-sensors, AI-specific chipsets, and appropriate server infrastructure is required. Furthermore, software must be designed with algorithms that allow the AI to interact and perform tasks in the real world. Examples are natural language processing (NLP), computer vision, or robotics.

Areas of application

Artificial intelligence has seemingly unlimited application across all market segments. Currently, with around 50 percent of the market share, official city governance and operations accounts for the largest segment of the AI economy. In approximately 750 pilot cities, the Chinese government has been developing and testing smart city models.