There are some 515 million of generative AI users in China. It suggests that China’s push to spread the technology throughout industry has succeeded. One metric to assess the US-China competition is usage, but in the long run another metric to consider is the diffusion of the technology. Does the spread of technology bring about an economic revolution or just a chatbot craze?
The spread of technology could be attributed to a lack of search engines. Baidu and Bing have dominated. The absence of Google has created a surge for basic research functions. The recent AI-surge fulfills this void.
ChatGPT is not available in China. The queries to Chinese chatbots could be to seek guidance or information. The consumers get lured by this, but it is not clear whether this could translate into a growth engine as expected by China.
Microsoft considers the usage by working-age population of AI tools. It infers that China is the world’s largest AI market. The introduction of DeepSeek reasoning model in January 2025 supercharged the adoption of AI. It accelerated AI deployment. It is not yet clear how much technology has been incorporated into these operations or whether it has boosted productivity.
Many of these use-cases may be to comply with government’s performance indicators. It is felt that DeepSeek’s adoption across healthcare is happening too fast, too soon. Some experimentation is necessary for integrating this nascent technology. It should affect the bottom line. There is less monetization for AI and most services are free-to-use. The technology proliferates and open source further adds to its accessibility. It could be made enduring if the math is rightly worked out. Or else the headline user counts do not translate into lasting economic value.
The finish line in the race is not yet visible – it is a decade or more away. Scaling usage is the first baby step. But it is not a sign of increased usefulness.
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