An HSBC analyst suggests that China's AI model companies are unlikely to fully capture the domestic software market. Instead, the analyst predicts a collaborative future where model builders and traditional software firms will work together to meet enterprise needs.

China’s artificial intelligence model companies are unlikely to “eat up” the domestic software market because they lack the deep industry know-how and experience to meet enterprise needs, according to an HSBC analyst. Unlike the US, China’s less developed software-as-a-service (SaaS) market stands to gain even as AI models continue to improve, with the most likely outcome being a collaborative approach where model companies and legacy software firms serve enterprises in tandem, said Yiran Liu,.....