The International Data Corporation (IDC) predicts that China’s generative AI software market will grow rapidly, reaching $3.54 billion by 2025. This projection reflects the increasing adoption of generative AI across enterprises and highlights the evolving demands for advanced AI development platforms.
The Need for Unified AI Development Platforms
As businesses integrate generative AI into their operations, IDC stresses the necessity of unified platforms that connect data, models, and applications seamlessly. These platforms are expected to enhance collaboration across organizational levels, from management to technical teams.
Key capabilities for these platforms include:
- Data Preparation: Streamlining datasets for effective AI training.
- Model Fine-Tuning: Customizing pre-trained models for specific needs.
- RAG/Prompt Engineering: Using retrieval-augmented generation to improve output.
- Model Deployment: Simplifying operational integration.
- Security Assurance: Ensuring ethical and secure AI implementation.
The report also notes a lack of industry consensus on defining large model platforms, signaling an opportunity for innovation and standardization.
Two Emerging Platform Types
IDC anticipates the development of two primary types of generative AI platforms:
- Foundational Platforms: Designed to integrate with enterprise-level data analytics and machine learning ecosystems.
- Intelligent Development Platforms: Targeted at non-technical users, offering low-code and no-code tools to simplify AI deployment.
This bifurcation reflects the diverse needs of enterprises, catering to both technical specialists and everyday users.
Generative AI: A Market in Its Infancy
Despite advancements in foundational AI models, IDC describes generative AI in China as still emerging. According to Lu Yanxia, IDC China’s Research Director for Artificial Intelligence, the technology is in its early stages, with many applications yet to fully materialize.
Lu emphasizes the importance of monitoring foundational model improvements while staying attuned to trends in generative AI applications. Companies navigating this market will face technical challenges but have the potential to unlock significant opportunities.
A Rapidly Evolving Landscape
The projected growth of generative AI in China underscores its transformative potential for industries. Unified development platforms and advances in foundational and application-level models will drive adoption across sectors, paving the way for AI’s broader integration into enterprise workflows.
As the market matures, companies must balance innovation with strategic planning to capitalize on the opportunities in China’s burgeoning AI landscape.