Chinese Experts Report AI Token Economy Emerging
- tech360.tv
- 6 hours ago
- 3 min read
Chinese technology experts report a token based economy is emerging due to the rapid increase in AI token use, according to SCMP. These units, which underpin artificial intelligence services, are moving from a technical metric to a foundation for delivering and pricing AI.
Yin Hao, an academician at the Chinese Academy of Sciences, stated that China's digital economy has progressed through data and computing stages. He noted the token economy is now appearing. This statement came during his keynote address at the China Internet Conference in Beijing.
Tokens represent the fundamental units artificial intelligence models employ to process and generate information. They also serve as the foundational elements for tasks ranging from chatbot discussions to the creation of high quality images and video content. And Yin clarified that these tokens exceed a simple technical measurement.
Yin Hao described tokens as a new production factor. This factor connects artificial intelligence model capabilities, computing resources, and commercial value within the evolving digital landscape.
AI token usage has significantly increased across China. Daily AI token consumption rose over 1,000 fold in slightly more than two years. Usage climbed from approximately 100 billion tokens daily at the beginning of 2024 to 100 trillion by the close of last year, according to the National Bureau of Statistics.
Daily usage in March surpassed 140 trillion tokens. This amount is roughly equivalent to 100,000 tokens per person, considering the country's population of about 1.4 billion individuals. But this rapid expansion reflects broader industry shifts.
The surge in artificial intelligence token usage is occurring as organisations throughout China increasingly adopt AI. This adoption aims to improve productivity and automate various business operations across multiple sectors.
China Unicom's Vice President, Qiu Baohua, stated that "token operation" is a significant driver of efficiency across the company's businesses. He made these remarks during his address at the aforementioned conference.
Qiu noted that Unicom's expanding consumption of artificial intelligence tokens reflected the growing integration of AI throughout its operational divisions. AI agents, he explained, have enhanced document drafting and contract retrieval efficiency by 70 per cent. So, this demonstrates tangible operational improvements.
Artificial intelligence now manages over 85 per cent of calls made to Unicom's 10010 customer service helpline. This change has led to a reduction in annual operating costs exceeding 100 million yuan, or USD 14 million.
Other prominent industry figures have also expressed optimism regarding this developing token economy. Wang Lei, Huawei Technologies Vice President and head of its data communication products line, affirmed the company's view.
Wang stated that Huawei considers the token economy to be "the greatest opportunity we can be certain of in an otherwise uncertain era." This sentiment suggests a strong belief in its future impact.
The China Internet Conference, a three day event, was organised by the Internet Society of China, a government backed industry association. The gathering commenced on the day of Yin Hao's speech.
Beijing is actively promoting AI and its integration into traditional industries. This year's conference consequently placed considerable emphasis on the technology. Sessions covered AI's contribution to developing new quality productive forces, advances in artificial intelligence agents, and safety protocols.
Discussions also included the coordinated development of computing infrastructure and energy systems. The agenda further featured topics such as the digital economy, online culture and content governance, cybersecurity, and data governance. These points align with China's broader strategy to reinforce its digital economy and hasten AI adoption.
AI tokens are becoming the basis for delivering and pricing AI services in China.
Daily AI token consumption rose over 1,000 fold in just over two years, exceeding 140 trillion tokens in March.
China Unicom reported efficiency gains and cost reductions from integrating AI agents.
Industry leaders, including Huawei, consider the token economy a significant opportunity.
Source: SCMP
