TLDR: UBS analysts predict that 2026 will be a pivotal year for Chinese companies to significantly monetize AI-powered ‘agents’. This projection is driven by the increasing sophistication of AI models, with tech giants like Tencent, Alibaba, and ByteDance actively developing new AI tools. Global long-term AI investments are expected to reach $375 billion in 2025, with China poised to capture a substantial share.
Artificial intelligence is rapidly advancing, and China is on the cusp of a significant financial breakthrough in the sector. According to analysts at UBS, Chinese companies are anticipated to begin generating substantial revenue from AI-powered ‘agents’ as early as 2026. Sundeep Gantori, an equity strategist at UBS Global Wealth Management CIO, highlighted 2026 as the ‘year of agent monetisation in China,’ attributing this growth to the increasing intelligence of AI models such as DeepSeek’s R2.
AI agents are defined as sophisticated systems capable of independently planning and executing complex tasks for users. Experts view these agents as the logical next evolutionary step beyond current generative AI tools like ChatGPT. The global technology landscape is already witnessing intense competition in this domain, with major players such as Google and OpenAI vying for leadership. Notably, German translation startup DeepL recently introduced its own AI agent designed to automate repetitive and time-intensive tasks across various functions.
The advent of AI has already spurred immense wealth creation, evidenced by the Nasdaq’s market capitalization nearly doubling since ChatGPT’s launch in late 2022. AI adoption rates are steadily climbing, with the US currently at 9% and expected to soon surpass 10%. Similar double-digit penetration rates are projected for both the US and China in the near future.
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UBS forecasts that global companies will allocate approximately $375 billion to long-term AI investments in 2025. China is expected to secure close to 15% of this global investment, a share attributed to the success of models like DeepSeek and the aggressive spending strategies of leading Chinese technology firms. Companies such as Tencent, Alibaba, and ByteDance are actively engaged in a race to develop and deploy advanced AI tools, positioning China as a key player in the burgeoning AI agent market.
