Please upgrade your browser

We take your security very seriously. In order to protect you and our systems, we are making changes to all HSBC websites that means some of the oldest web browser versions will no longer be able to access these sites. Generally, the latest versions of a browser (like Edge, Chrome, Safari, etc.) and an operating system family (like Microsoft Windows, MacOS) have the most up-to-date security features.

If you are seeing this message, we have detected that you are using an older, unsupported browser.

See how to update your browser

Equity Insights

AI Democratised: What lower cost of compute means for the investment landscape
11 June 2025
    Articles
    Download the full reportPDF, 491.95KB

    Evolution of the AI story

    The AI revolution is entering a new phase, with recent advances reducing the cost of AI compute and broadening access to the technology. This democratisation of AI is expected to unlock higher-value applications and accelerate enterprise adoption globally, setting the stage for new leaders in the AI investment narrative.

    The emergence of cost-efficient AI models from China has shifted market dynamics, and we think further supports the case for software firms to lead the next stage of the AI investment cycle. Ultimately, it is this segment that will drive the integration of generative AI into products and solutions.

    While the US remains a leader in foundational AI development, China’s engineering optimisations and scale advantages have positioned it as a key player in the next phase of AI growth. China and broader emerging Asia also present unique opportunities for scaling and commercialising the technology. With expansive technology ecosystems and superapps, the region is well positioned to leverage AI for consumer applications, potentially eroding the profitability edge held by US tech firms. This shift underscores the broader case for international diversification, even in the tech sector, which has long been dominated by the US.

    Related articles

    Back to top