“The emergence of new artificial intelligence models in China could drive faster development and adoption of the technology in the country than previously projected, according to Goldman Sachs Research. Should AI gain traction, it could boost productivity and GDP growth in the world’s second-largest economy. China’s AI advancement has accelerated since our researchers examined, in 2023, the potential impact of generative AI on the country’s economic growth. The number of foundation models, which represent cutting-edge AI research, climbed to 20 by the end of that year, surpassing the combined total of the EU and UK. The release of DeepSeek’s model, which may have been developed at lower cost than other leading models, suggests a faster adoption rate and greater economic upside for China than previously anticipated, Goldman Sachs Research economists Hui Shan, Joseph Briggs, and Xinquan Chen write in the team’s report. Faster adoption of generative AI in China could translate into lower labor costs and higher productivity as more tasks are automated.”
Morten W. Langer
