While China is at the forefront of GenAI experimentation, the U.S. is ahead in implementation, according to a survey.

• According to a survey by SAS Institute and Coleman Parkes, while Chinese companies are at the forefront of experimentation with generative AI, they lag behind the U.S. in terms of full implementation.
• A survey of 64% of Chinese companies revealed that they were conducting initial experiments on generative AI but had not yet fully integrated the technology into their business systems.
• In China, nearly 20% of respondents were fully prepared to follow AI regulations, while only 14% in the U.S. were similarly confident in their preparation.

While Chinese companies are at the forefront of generative AI experimentation, they lag behind the U.S. in terms of complete implementation, according to a recent study.

A survey conducted by SAS Institute and Coleman Parkes revealed that 64% of Chinese companies are experimenting with generative AI but have not yet fully integrated the technology into their business systems.

In contrast, 41% of U.S. companies were still experimenting with it while only 58% of UK companies were.

In 1,600 organizations worldwide, key decision-makers in GenAI strategy or data analytics were found in key sectors such as banking, insurance, retail, and health care.

In terms of integrating GenAI into their business processes, the U.S. leads the way with 24% of companies having fully implemented the technology, compared to 19% in China and 11% in the UK.

Adoption referred to both experimentation and full implementation in the survey.

The adoption of generative AI is highest among Chinese organizations, with 83% either testing or fully implementing the technology, compared to the United Kingdom at 70%, the United States at 65%, and Australia at 63%.

Stephen Saw, managing director at Coleman Parkes, stated that although China may have the highest adoption rates of GenAI, it does not necessarily mean successful implementation or higher returns.

According to Udo Sglavo, SAS's vice president of Applied AI & Modeling Research and Development, to fully realize the potential of generative AI, it must be seamlessly integrated into all aspects of a company's operations.

U.S. vs. China ecosystem

Sglavo from SAS asserts that the U.S. has several benefits in the integration of generative AI, including a more established ecosystem and a substantial number of highly skilled AI professionals and researchers.

He stated that the country boasts a culture of innovation, robust AI leadership from private companies, and a transparent regulatory environment, making it a favorable location for businesses.

The survey showed that China is well-positioned to catch up in terms of full implementation and maturity.

In China, nearly 20% of respondents were fully prepared to follow AI regulations, while only 14% in the U.S. were similarly confident in their preparation.

Approximately 31% of Chinese survey respondents stated that they lack the necessary tools, while 21% admitted to not possessing the internal expertise to perform the task.

Previously, AI experts informed CNBC that China was at the forefront of developing generative AI regulations, having been working on them prior to the rise of OpenAI's Chat GPT in 2022.

Beijing's ideology and censorship policies have been a concern for Chinese regulators in their efforts to control the potential for generative AI to produce content that may violate them.

Although the launch of ChatGPT-like services by Chinese tech companies has made them more cautious, it has also prompted them to concentrate on enterprise and specific generative AI applications.

A United Nations report revealed last week that China has filed more than 38,000 patents in the field of generative artificial intelligence from 2014 to 2023, contributing to its dominance in the global race for AI patents.

According to Sglavo, the high demand for AI technologies in China stems from its large population and rapidly expanding digital economy.

GenAI solutions have been quickly adopted and integrated by companies due to high demand, with applications in e-commerce, health care, education, and manufacturing, where AI is used to improve efficiency and innovation, as stated.

Beijing has introduced several initiatives to increase domestic AI use and infrastructure. In May, the country launched a three-year plan to improve AI chip standards and develop generative AI, as well as enhance national AI computing power.

Sglavo stated that due to the Chinese government's emphasis on AI, Chinese companies are quickly incorporating various aspects of AI within their organizations.

Generative AI outlook

The survey emphasized the growing significance of generative AI in all regions and industries.

Organizations that have adopted generative AI are experiencing substantial enhancements, with approximately 90% reporting increased satisfaction and around 80% stating they are reducing operational expenses.

One in 10 global businesses will allocate a budget for generative AI in the next financial year, with Asia-Pacific leading the way at 94%, according to a report.

Last week on CNBC's "Street Signs Asia," Wei Sun, senior consultant of artificial research at Counterpoint Research, stated that the U.S. has surpassed China in the initial stage of AI development, particularly in the areas of AI chips and significant advancements in foundational large language models.

She added that the second round would focus on innovating technology for more specific data sets and applications for consumers, businesses, and industries.

A McKinsey report from 2023 states that generative AI could contribute between $2.6 trillion to $4.4 trillion in value annually across 63 business use cases.