At a panel, at the Singapore Week of Innovation and Technology, the general partner at early stage venture capital firm SOSV Mr. William Bao Bean said that the noteworthy amounts of money were flowing into AI.
He said: “So the last 15 years, entrepreneurs and [venture capitalists], like us, have been investing in companies that solve basic problems. Adding most of the problems today are solved “pretty well” in the country.”
Bao Bean further said: “Currently, China is a lot more like the U.S., where in order to make an impact, you have to have a revolution in tech. so you’re seeing massive amounts of money going into AI.”
KPMG which is the global consulting firm said in January that China set a record high in terms of VC investments in 2016, in spite of a global slowdown in the field. The strong performance was anticipated to continue as AI becoming a strong emphasis for investors said by the firm.
In the month of July, China State Council issued guidelines on evolving AI inside the country and set a goal of becoming a global revolution center for the technology by the year 2030.
Investment bank Goldman Sachs issued a report earlier this month and in that report saying that China has emerged as a major global contender in using AI to drive economic growth. Goldman recognized four main areas for China in which growth is needed to create value in AI. These four key areas are talent, data, infrastructure, and computing power. China not only has a massive population but the mainstream of the people have some form of access to the internet.
According to Goldman, some of the companies to watch out for in China drive for AI are the huge three internet giants, Baidu, Alibaba, and Tencent. Some of the other companies include ride-hailing company Didi Chuxing, on-demand services provider Meituan-Dianping and speech and language recognition firm iFlytek.
Bao Bean said: “Unless you ally yourself with one of the big players, no one will ever see your product.”
He further added, “If you want to come in China, you have to understand what is your unfair advantage coming out and do you solve a problem for that local market, because your product, generally, from the U.S. is not going to work well in China it needs to be changed.”