(Yicai) July 25 -- Chinese companies are accelerating their artificial intelligence adoption, but only 9 percent of them are realizing significant value in terms of productivity, revenue, or profitability from it, according to the latest report by global management consulting giant Accenture.

Chinese firms use AI in complex scenarios, such as research and development, manufacturing, and supply chain, with 46 percent using generative AI solutions across functions and processes, according to Accenture's eighth China Digital Transformation Index report released on July 23.

"In an environment marked by volatility, uncertainty, and mounting performance pressure, focusing on innovation and building resilience are the path forward for Chinese companies seeking high-quality growth," said Samantha Zhu, Accenture's global vice president and China chairperson.

The findings of the report expose a concerning pattern, as Chinese enterprises have to navigate the most challenging operating environment in years. Large firms, those with revenues over USD100 million in 2023, experienced a revenue slowdown to only 5 percent last year, while their operating profits declined.

Despite that, they continued to invest heavily in digital transformation, with the 2025 China Digital Transformation Index rising to 49 points, marking three consecutive years of improvement.

The Implementation Challenge

Despite the widespread adoption of AI across Chinese companies, most implementations remain shallow. In fact, only 21 percent of the 163 firms across seven key industries surveyed by Accenture have the ability to promote large-scale applications beyond pilot projects.

One-third have redesigned their organizational structure and way of working to adapt to AI-driven collaboration, and 15 percent excel in data classification necessary for effective AI utilization, the report showed.

And of them, only 9 percent are realizing significant value in terms of productivity, revenue, or profitability. This shows that there are systemic challenges extending beyond technology deployment.

"AI is transitioning from simple to complex, from shallow to deep applications," said Yu Yi, Accenture's global VP and president of technology and services for China. "But many companies are stuck in the tool application phase and can't achieve strategic integration."

The 9% Exception

While most companies struggle with AI implementation, exceptions like Wuxi Lead Intelligent Equipment and Midea Group demonstrate what can really be achieved with AI.

Founded in 1999, Lead Intelligent transformed from a workshop into an AI-powered lithium battery equipment leader. With 14 percent of revenues invested in R&D, the company deployed AI-driven quality control, achieving 99.7 percent defect detection accuracy.

Lead Intelligent's AI-first manufacturing approach helped it capture a 9.1 percent stake of the global market last year, up from 5.8 percent the previous year.

Home appliance giant Midea deployed over 68 AI agents across its operations last year, saving CNY160 million (USD22.3 million) in costs. The company reported CNY409.1 billion (USD57.1 billion) in revenue last year, with overseas sales accounting for over 41 percent of the total revenue.

Midea is now building a systematic AI agent platform covering design, translation, finance, legal, quality control, and manufacturing functions. Sales of products under Midea's own brands contributed 43 percent to its total overseas revenue.

"Chinese companies are proactively embracing globalization," Yu noted. "They're moving beyond simple product exports to comprehensive brand building and technological innovation."

AI plays a key role in the strategies of many Chinese companies seeking global expansion due to domestic market saturation and international headwinds. The Accenture report found that 35 percent of the surveyed firms aim to establish new industry benchmarks within two years, up from 23 percent last year.

This strategic evolution shows that companies are dramatically increasing R&D investment, with some spending over 10 percent of revenue on innovation, and that globalization efforts are intensifying, with 37 percent of surveyed companies now generating over 20 percent of revenue from overseas markets.

Suggestions

Differentiation is essential for companies planning to deploy AI, Yu believes. "Firms definitely need to use AI but don't necessarily need to build models themselves," he said. "In the process of AI implementation, they can't be too generic, they have to add their own characteristics and customize it."

Accenture identified four critical priorities for Chinese enterprises: innovation-driven growth, resilient digital infrastructures, adaptive operations, and human-AI collaboration.

Innovation-driven growth means that firms need to systematically integrate AI into business models and strategic decision-making rather than treating it as an operational efficiency tool.

Companies can have a resilient digital infrastructure by building flexible architectures that combine AI capabilities with proprietary data while maintaining compliance across global markets, which is crucial as regulatory complexity increases.

Adaptive operations require firms to move beyond static resilience to dynamic capabilities that enable real-time adjustment of supply chains, production, and partnerships as market conditions shift.

To achieve effective human-AI collaboration, companies must redesign talent strategies and organizational structures to maximize the value of human-machine partnerships rather than simply deploying AI tools.

The Accenture study suggests that enterprises successfully navigating this transformation paradox will emerge stronger from current economic headwinds.

With 44 percent of Chinese firms reporting improved readiness to handle external changes, up from 36 percent last year, those that crack the AI value code stand to gain significant competitive advantages in an increasingly challenging global marketplace.

As economic pressures mount and technological capabilities advance, the gap between AI adopters and AI value creators will likely widen, making strategic implementation more critical than ever for Chinese companies seeking sustainable growth.

Editor: Futura Costaglione