Finance News on August 22nd (Reporter Guo Songqiao) – Finance News learned from CPA Australia that the latest survey results from the organization showed a steady growth in the proportion of Chinese mainland companies using artificial intelligence (AI) over the past three years. At the same time, the proportion of Chinese mainland companies expected to increase AI application in the next 12 months also increased significantly, with nearly half (48%) of the Chinese mainland accountants and finance professionals surveyed expecting their companies to increase AI application in the next 12 months, more than double the proportion of the same period last year (20%).

CPA Australia's "2024 Business Technology Application Survey" shows that 44% of Chinese mainland respondents stated that their companies had increased investment in or upgraded technology in the past 12 months. When asked about their willingness to apply technology in the next 12 months, 81% of Chinese mainland respondents expect their companies to increase technology application in the next 12 months, with AI (48%) being the first choice, followed closely by data analysis and visualization software (43%) and business intelligence software (37%).

The survey shows that 72% of Chinese mainland respondents stated that their companies had applied AI in the past 12 months, a proportion that has continued to grow steadily over the past three years. In addition, 29% of Chinese mainland respondents stated that their companies had been using AI continuously in the past 12 months, a proportion that increased by 10 percentage points compared to last year.

The Deputy Chairman of the East and Central China Committee of CPA Australia and senior registered accountant of Kimco Realty Corp, commented to Finance News: "A series of supportive policies and measures introduced by the government in recent years, combined with the rapid development of generative AI and large model technology (LLM), have created favorable conditions for Chinese mainland companies to apply AI. By using AI, companies can better analyze data, improve decision-making, automate repetitive tasks to improve efficiency, and reduce costs. Strategic application and investment in AI not only strengthens the competitive advantage of companies but also enhances their contribution to the value chain, paving the way for companies to achieve sustainable growth in the digital economy wave."

Kimco Realty Corp believes: "From the survey results, Chinese mainland companies' current application of AI is still in the early stages. 72% of Chinese mainland respondents stated that their companies have only limited or moderate application of AI. To promote deep integration of AI and the real economy, companies should continue to invest in enhancing their capabilities for data acquisition, application, and management to expand the commercial application scenarios of AI, and help companies transition to more intelligent-driven business models."

The main challenges faced by Chinese mainland and Asia-Pacific respondents' companies in technology application over the past 12 months include financial costs and low return on investment (ROI).

In response, Kimco Realty Corp suggested: "Considering the increasing global economic uncertainty and the complexity of investing in advanced technologies such as generative AI and large model technology, companies should first focus on their core business. At the same time, companies need to use a more comprehensive evaluation mechanism or ROI model to monitor and measure the actual impact of technology application on operational performance, and use this as a basis for technology investment and upgrades."

Kimco Realty Corp also suggests: "In addition, it is recommended that companies incorporate technology innovation and digital transformation strategies into their global strategies, and make overall plans and layouts to provide solid technical support for the global digital economy opportunities for enterprises to go global."

The increasing popularity of digital technology has made the security of technology applications a major concern for enterprises. A survey shows that cybersecurity has become the most widely used technology in Mainland China in the past 12 months (91%). Three-quarters of the respondents in Mainland China stated that their companies have been using cybersecurity software, and more than half (55%) of the respondents in Mainland China said that their companies have strengthened cybersecurity measures in the past 12 months.

The survey shows that investment in cybersecurity has brought positive feedback. Nearly half (48%) of the respondents in Mainland China believe that the cybersecurity level of their companies in the past 12 months is at or above average, an increase of 3 percentage points compared to last year. In addition, 60% of the respondents in Mainland China stated that their companies have not incurred any time or financial losses due to cybersecurity incidents in the past 12 months. Therefore, 36% of the respondents expect their companies to further invest in cybersecurity software in the next 12 months.

Chen Jianfeng, Vice Chairman of the South China Committee of CPA Australia and a senior registered accountant in Australia, said: "Effective corporate governance is critical to fully unleashing the potential of advanced technology and effectively reducing risks. With the increasing complexity of cybersecurity threats, traditional cybersecurity and data security measures are no longer sufficient for risk management. Enterprises must regularly review existing cybersecurity tools and measures to ensure that they can effectively protect against emerging technologies and cybersecurity threats."

Chen Jianfeng reminded: "In addition, considering that global markets, including the EU, have begun to develop or introduce relevant laws and regulations for AI regulation, it is recommended that Chinese companies planning to expand into overseas markets should also consider taking relevant measures to enhance AI governance to meet compliance requirements. For example, it can consider formulating clear policies and processes to guide the responsible development, deployment, application, and monitoring of AI technology within the enterprise."

The survey also showed that 39% of the respondents in Mainland China stated that their companies have hired employees with technical and data analysis skills in the past 12 months, an increase of 8 percentage points compared to last year. In addition, 53% of the respondents in Mainland China stated that their companies have addressed the challenge of a shortage of technical talent in the past 12 months by enhancing the skills of existing talent through training and/or retraining.

Chen Jianfeng pointed out: "Building a talent pool that is adaptable to the future and can collaborate effectively with machine learning and AI will be a key competitive advantage for enterprises to achieve sustainable long-term development. We recommend that companies continue to focus on building an innovative culture and provide comprehensive resources for skills enhancement or reskilling for talents at all levels."

The Institute of Chartered Accountants of Australia conducted this survey during the period from June to July 2024, interviewing a total of 1060 finance, accounting, and finance professionals from various industries in major markets in the Asia-Pacific region, including Mainland China, Malaysia, Vietnam, and Australia. Among them, there were 207 respondents from Mainland China, and about one-third of the respondents in Mainland China were senior executives or held senior management positions.