- Since 2023, China has issued multiple policies encouraging central enterprises to advance AI development, including the „AI+ Specific Industry“ initiative by the State-owned Assets Supervision and Administration Commission (SASAC).
- In 2024, AI procurement by Chinese SOEs experienced exponential growth, with 931 procurement projects launched. Of these, 551 projects disclosed a total procurement value of 3.22 billion RMB, accounting for 49.8 percent of the overall market. The total procurement value is expected to be even higher. This represents a dramatic increase from 92 projects and 789 million RMB in 2023.
- Leading SOEs like State Grid, CNPC, and China Merchants Group are actively investing in AI.
- A survey of 97 Chinese SOEs shows increasing AI adoption, with 36 percent establishing dedicated Large Language Model teams and 24 percent launching proprietary or co-developed models.
- The top application priorities are knowledge assistants (72 percent) and data analysis (64 percent), followed by employee productivity tools (41 percent) and both intelligent document assistants and coding assistants (39 percent). SOEs focus on AI applications with clear business value, prioritizing mature, high-return use cases to enhance productivity.
- Zhipu AI and Zhongguancun Kejin emerged as leading toB-focused unicorns, securing numerous central enterprise contracts and developing tailored solutions for various industries.
- The market is shifting towards specialized, co-developed solutions tailored to specific industries and scenarios. Strategic investments in AI are poised to boost operational efficiency, profit margins, and national technological self-reliance.
- Looking ahead to 2025, SOEs are expected to further accelerate AI adoption, with Large Language Model applications becoming a core focus in enterprise digital transformation.
Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.