China's DeepSeek is making waves in the artificial intelligence scene, and its impact could be significant. According to Goldman Sachs Research, DeepSeek's advanced generative AI models, developed at a lower cost than existing offerings, could spur faster adoption of AI and boost its impact on global GDP.
China's AI ecosystem is robust and dynamic, with significant advances in AI research and widespread application across multiple sectors. Key players like Baidu, Alibaba, and Tencent are driving innovation in areas like autonomous driving, natural language processing, and AI-driven healthcare solutions.
The Chinese government has strategically positioned AI as a pillar of its national policy, with the aim of making China the global leader in AI by 2030. Government investment in AI is considerable, spanning federal, provincial, and local levels.
DeepSeek's breakthrough could raise the macroeconomic upside over the medium-term, with potential cost reductions helping increase competition around the development of platforms and applications. However, the near-term adoption impact is likely limited, as cost is not currently the main barrier to adoption.
