AI Photo: VCG

China is MKsportriding the wave of an artificial intelligence (AI)-powered transformation, as multiple localities increase support for the innovation and application of large language models (LLMs) and related technologies. Major Chinese industry players are actively integrating AI to form new business models.

A number of cities have introduced new measures to accelerate AI integration into key industries. For example, the Wuhan East Lake High-Tech Development Zone in Central China's Hubei Province announced 14 measures to boost the software and internet technology services sector, including support for AI development and open-source ecosystems, with up to 50 million yuan ($6.91 million) for leading enterprises developing large-scale AI models. 

The city of Suzhou, East China's Jiangsu Province published a draft plan to invest in AI chip start-ups through a specialized fund, aiming to attract social capital and promote innovation. Shanghai has also unveiled measures to support the services industry through AI, including allocating computing power vouchers to help start-ups and innovation platforms access AI resources at lower costs. 

These initiatives show Chinese localities are stepping up efforts to support the AI industry, sending a clear signal of the advancement of the AI Plus initiative, Pan Helin, a member of the Expert Committee for the Information and Communication Economy under the Ministry of Industry and Information Technology, told the Global Times on Tuesday.

It also aligns with China's broader strategy to develop new quality productive forces as a new engine for growth, marking a new phase where AI moves from the exploratory stage to large-scale application and deep integration with various industries, Pan noted.

The 2025 Government Work Report calls for advancing the AI Plus initiative by effectively combining digital technologies with China's manufacturing and market strengths. It also states that China will support the extensive application of large-scale AI models and vigorously develop new-generation intelligent terminals and smart manufacturing equipment, including intelligent connected new-energy vehicles, AI-enabled phones and computers, and intelligent robots.

Multiple companies, such as Alibaba and JD.com, have announced plans to drive their business with AI technologies. 

Chinese e-commerce giant Alibaba plans to review departments' performance with an AI focus, domestic news outlet Jiemian.com reported on Tuesday. "All business units have been informed of the evaluation," said the report, adding that core e-commerce divisions, including Taobao and Tmall, are being encouraged to adopt more AI technology. 

The company is also working on a series of AI-native apps, some of which could be launched this year, the company confirmed to the Global Times on Tuesday.

Liu Qiangdong, founder of Chinese e-commerce giant JD.com, was spotted at the Hong Kong University of Science and Technology visiting AI projects, such as the Cheng Kar-Shun Robotics Institute and the aerodynamic and acoustic laboratory dedicated to noise assessment and flight safety of drone services, according to a report by yicai.com on Tuesday.

JD Logistics is set to leverage AI technology for intelligent supply chain planning, according to the report.

The examples of the digital economy and e-commerce represent just one facet of China's broader push for AI integration. As of 2024, nearly 200 generative LLMs had completed registration and been launched online in China, serving more than 600 million registered users, according to a Xinhua News Agency report on March 9.

Pan predicted that in the next one to two years, more small and medium-sized enterprises will adopt AI applications, and large enterprises will develop industry-specific models using open-source frameworks.

According to a Goldman Sachs Research report in January, "2025 will be the year of AI agents and applications. The good news is that some of the Chinese models have pushed the industry to focus not just on raising the performance, but also on lowering the cost." 

AI will drive traditional industries toward data-driven production and AI-optimized operations, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Tuesday, adding that the application of AI technology can significantly enhance production efficiency, reduce costs and improve product quality and service levels. That's why more companies are integrating AI into their strategies to gain a competitive advantage.

Additionally, the growth of the AI sector will spur the development of related industrial chains, creating numerous jobs across fields such as technology research, application development and operations management, Wang added.