Leading global research firm Gartner recently released a latest news outlining ten key trends for Artificial Intelligence (AI) development in China for 2025. The report indicates that Chinese enterprises should move beyond technological hype and over-promotion, focusing instead on sustainable AI pathways, tangible benefits, and practical application scenarios. As China makes significant progress in AI R&D and deployment, particularly in Generative AI (GenAI) technologies, it is propelling the AI industry into a new stage through robust design and engineering capabilities, coupled with an increasingly mature ecosystem.
Tianqi Fei, Senior Principal Analyst at Gartner, analyzed that China’s AI ecosystem has formed a complete system encompassing IT infrastructure, data, talent, security, and model engineering innovation. Under the premise of efficient resource utilization, Large Language Models (LLMs) and other applications are developing rapidly; these changes constitute the core themes of the current AI trends in China. The report predicts that by 2026, 50% of China’s AI industry ecosystem will be built upon open-source GenAI models, a trend becoming increasingly evident since DeepSeek’s open-source release in January 2025. The open-source model not only fosters technological collaboration and innovation but also lowers the barrier to using AI technology, enabling developers to perform customized development based on existing models and promoting the sharing of AI dividends across society.
At the application level, a “build-your-own” strategy is becoming the mainstream choice for enterprises. Faced with opportunities brought by digital transformation and AI, an increasing number of Chinese companies prefer to develop their own AI models rather than purchasing off-the-shelf solutions. This trend benefits from the proliferation of open and low-cost technologies. Through self-development, enterprises can deploy models more flexibly, deeply integrate proprietary business knowledge with specific scenarios, and achieve seamless integration with existing systems. Gartner predicts that by 2028, as the need for enterprises to form internal teams to manage proprietary AI solutions grows, the demand for AI development skills in China will increase by 50%.
The rise of Agentic AI is another major trend. With the rapid adoption of AI technology in China, enterprises are beginning to utilize Agentic AI to optimize business processes and enhance operational efficiency. The report states that by 2028, 33% of enterprise software will integrate Agentic AI capabilities, compared to less than 1% in 2024. This shift is closely related to China’s emphasis on AI-driven digital transformation, making Agentic AI a key element in strategic technology development.
The proliferation of Frugal AI reflects the diverse characteristics of China’s economy. This technology provides cost-effective solutions by reducing dependence on AI chips and computing power, making it particularly suitable for small and medium-sized enterprises and startups with limited resources. This trend not only promotes fair competition but also aligns well with China’s economic goals of inclusivity and balanced development.
Engineering capability has become a unique advantage in China’s AI development. Unlike some regions that prioritize product maturity, China places greater emphasis on engineering practices, forming a distinct path in technology and operational optimization. Enterprises tend to meet specific needs through customized development rather than passively adapting to standardized products. This orientation is reflected in AI model design, application implementation, and infrastructure deployment.
The need for AI security and risk management is driving the formation of collaborative AI defense systems. Gartner predicts that by 2028, 60% of Chinese enterprises deploying AI will form cross-departmental teams to address cybersecurity risks, compared to only 5% currently. This trend reflects enterprises’ growing attention to AI security threats, including risks such as data breaches, financial losses, and business interruptions.
The rapid growth of AI talent is a direct manifestation of the prosperity of China’s AI ecosystem. As the domestic AI industry’s demand for highly skilled talent surges, China has become a global leader in AI talent cultivation. The report predicts that by 2027, over half of Chief Data & Analytics Officers (CDAOs) will secure specific budgets for data literacy and AI literacy programs, addressing the challenge that GenAI investments may fail to deliver expected value.
The widespread adoption of AI is transforming Chinese society. A vibrant digital ecosystem provides an ideal environment for integrating AI into daily life. Enterprises are accelerating technology popularization by developing user-friendly AI products that meet local needs. Gartner predicts that by 2030, the AI adoption rate in Chinese society will exceed 50%, with technological progress continuously unleashing social impact.
In terms of ecosystem building, China’s AI ecosystem is evolving towards “coopetition” (cooperative competition). Tech giants compete fiercely for market share but collaborate in specific segments of the AI value chain, jointly building a multi-layered ecosystem. This collaboration spans various roles, including cloud service providers, hardware manufacturers, and AI model developers, promoting the inclusive development of the ecosystem.
Finally, the enterprise focus is shifting from the models themselves to data resources. The report points out that the real competitive advantage lies in the ability to acquire and utilize unique internal data. As AI models become increasingly standardized, whether enterprises can efficiently leverage their own data and continuously enhance AI performance will become the key to differentiated competition. More and more enterprises are beginning to build complete ecosystems around “from Data to AI” to drive innovative practices.
