China’s AI Industry Nears a Breakthrough with Agentic Technology

Cost-Effective Innovations Drive Rapid Adoption

China’s artificial intelligence landscape is on the verge of a monumental shift, with industry experts suggesting it’s approaching a transformative “GPT-like moment” powered by agentic AI technology. This next-generation AI, capable of autonomously managing complex tasks, is reshaping enterprise software solutions and digital assistant capabilities across the nation. UBS analysts highlight how Chinese AI startups and established software firms are accelerating innovation, delivering cost-effective AI applications that promise widespread adoption. A prime example is Monica.ai’s Manus, an all-in-one AI assistant designed for tasks like market research analysis, document processing, coding projects, and personalized travel itinerary planning. Priced far below comparable U.S. models, Manus is sparking predictions of a surge in agentic AI usage throughout China, positioning the country as a formidable player in the global AI race.

The concept of a “GPT-like moment” draws parallels to the revolutionary impact of OpenAI’s GPT models, which redefined AI possibilities worldwide. In China, this moment is unfolding through agentic AI, a technology that goes beyond answering queries or generating text to actively execute multi-step processes with minimal human oversight. Monica.ai’s Manus stands out as a leader in this space, offering subscription plans starting at just $9.99 per month for its Starter tier and scaling to $49.99 for Pro users, with custom options for enterprises. By contrast, some U.S.-based AI models, such as those from OpenAI, can cost upwards of $20,000 monthly for specialized agentic features. This significant pricing gap underscores why UBS foresees faster adoption of cost-effective agentic AI solutions in China, potentially outpacing Western competitors in market penetration and scalability. Beyond affordability, Manus boasts advanced capabilities, reportedly surpassing OpenAI benchmarks like GAIA, making it a compelling choice for businesses and individuals seeking powerful yet budget-friendly AI tools.

Chinese enterprise software companies are also capitalizing on this trend, embedding AI deeply into their offerings to meet growing demand. Yonyou, a major player in enterprise resource planning, has rolled out over 100 AI-enhanced features tailored for human resources management, accounting automation, and customer support systems, securing $14.2 million in AI-related orders in 2024 alone. With a strong foothold among state-owned enterprises, Yonyou’s success reflects the broader push toward AI-driven digital transformation in China’s corporate sector. Similarly, Kingdee’s BOSS AI agent delivers real-time analytics for finance operations, supply chain optimization, and manufacturing workflows, generating orders worth tens of millions of dollars. Leveraging partnerships with platforms like AWS’s Amazon Bedrock, Kingdee exemplifies how Chinese firms are blending local innovation with global tech infrastructure to stay competitive.

The consumer market is equally vibrant, with Kingsoft Office’s WPS AI tools leading the charge. Featuring AI-powered co-writing and productivity enhancements, WPS AI has attracted 2 million paid subscribers and raked in an estimated $42.8 million in revenue. Meanwhile, Guangzhou SIE Consulting recently clinched a $48 million AI project, underscoring the diverse applications of agentic technology across industries. These examples illustrate a broader trend: China’s AI sector is not only innovating rapidly but also monetizing effectively, turning “digital employees” into profitable assets. UBS analysts emphasize that Manus is merely the starting point, predicting a wave of even more affordable and efficient agentic AI applications that could redefine how businesses operate, both in China and beyond.

What sets China’s AI ecosystem apart is its ability to combine cost efficiency with scalability, fueled by a massive domestic market and supportive government policies. The nation’s data infrastructure, among the world’s largest, provides a rich foundation for training sophisticated AI models, while state initiatives since 2016 have prioritized AI leadership by 2030. This environment has fostered a surge in venture capital activity, with investors pouring funds into AI-native startups poised to challenge traditional internet and software giants. Companies like DeepSeek are gaining attention for their cost-effective models, which rival U.S. offerings and hint at China’s potential to influence global AI standards. As adoption accelerates, the affordability of tools like Manus could pressure Western firms to rethink pricing strategies, especially in price-sensitive markets.

For those exploring the implications of China’s agentic AI boom, the numbers tell a compelling story. Yonyou’s $14.2 million in orders and Kingsoft’s $42.8 million in revenue highlight immediate financial gains, while Manus’s low entry price of $9.99 monthly democratizes access to cutting-edge technology. Compared to U.S. alternatives, where Salesforce charges $2 per AI conversation and OpenAI scales up to $20,000 monthly, China’s offerings present a stark contrast that could shift global market dynamics. This cost advantage, paired with robust enterprise integration, positions China’s AI sector as a disruptor, capable of challenging the dominance of U.S. tech giants in the agentic AI space.

Looking ahead, the rapid pace of innovation and monetization suggests that China’s AI industry is entering a golden era. Tools like Manus are paving the way for a future where agentic AI becomes a standard component of business operations, from small startups to multinational corporations. As Chinese firms continue to refine these technologies and expand their reach, the global AI landscape may see increased competition, with affordability and autonomy as key battlegrounds. UBS’s optimism about accelerating monetization and disruptive potential appears well-founded, signaling that China’s “GPT-like moment” could have far-reaching effects on how the world adopts and interacts with artificial intelligence.