The AI Pivot: From Supporting Tool to Economic Powerhouse

The narrative around artificial intelligence is undergoing a significant rewrite. At the 2026 World AI Conference, Zou Jun, Chairman of KPMG China, articulated a pivotal shift: AI is rapidly evolving from a tool that enhances efficiency into a fundamental engine powering economic expansion, deeply embedded across all sectors of the real economy.

China's Accelerated Path: From Lab to Factory Floor

Why is this transformation gaining particular momentum in China? Insights from a KPMG report released during the conference point to two structural advantages. First, China possesses the world's most comprehensive industrial system. Second, it is home to a colossal consumer market of over one billion internet users.

This combination creates a fertile ground for rapid commercialization. Massive, upgrading industrial demand alongside endless consumer application scenarios provides AI technologies with unparalleled testing and scaling opportunities. The journey from a laboratory breakthrough to a production-line solution is significantly accelerated, enabling faster value realization.

Where Capital Flows: The Embodied Intelligence Boom

Market confidence is vividly reflected in investment trends. KPMG data highlights embodied intelligence—the integration of AI models with physical entities—as the sector attracting explosive capital inflow.

In 2025, global funding for embodied intelligence surged to $11.17 billion, marking a 152% year-on-year increase, across 670 deals. This momentum continued robustly into the first quarter of 2026, with funding hitting $5.03 billion, up nearly 183% from the same period last year.

  • 2025 Funding: $11.17B (Up 152% YoY)
  • 2025 Deal Count: 670 (Up 81% YoY)
  • 2026 Q1 Funding: $5.03B (Up 182.9% YoY)
  • 2026 Q1 Deal Count: 203 (Up 55% YoY)

These figures underscore the vast potential recognized in embodied intelligence as a primary direction for large model applications. The vigorous capital movement signals strong belief in the fusion of AI with the physical world, steering the technology's narrative toward tangible, economic impact.