China has recently witnessed impressive advancements in the use of AI for both manufacturing (in industrial use)
China has recently witnessed impressive advancements in the use of AI for both manufacturing (in industrial use) and services (financial and commercial services). As of December 2018, 3,341 Chinese AI companies have been registered, altogether representing about a fifth of the world's total AI firms (15,916). It is not surprising, then, that China accounted for the most significant investments in AI start-ups-about half of the global AI funding-in 2017. AI implementation is common in robotic and surveillance security, but financial services get a good portion of China's AI share too. In 2018 alone, spending on AI by the country's banking and finance industry increased by 51.2 percent, with an expected growth from $956.4 million in 2019 to $3.3 billion by 2025. Unlike in the United States, investments are consolidated in China's top financial institutions, with mid-tier businesses and private companies lagging. This growth has the full support of the government, which aims to make China the world leader in AI by 2030 as part of its "Made in China 2025" blueprint.
Questions for case 2.5
1. What is the state of AI use in China’s financial sector?
2. What are the reasons behind the growth of AI in China as a whole and in the financial sector in particular?
3. In which sectors are AI technology companies clustered in China?
Step by Step Answer: