Chinese robotics industry shifts focus to artificial intelligence development

Chinese robotics firms, having achieved success in developing mobile humanoid robots, are now prioritizing the creation of advanced artificial intelligence systems to enhance the functionality and utility of these machines. According to data from the research firm ITjuzi, companies in the embedded AI sector secured 93.5 billion yuan (approximately 13 billion dollars) across 322 deals during the first half of 2026. This financial investment represents a fivefold increase compared to the same period in 2025.

Industry analysts note that as competition intensifies and hardware prices decline, profit margins are increasingly shifting from physical manufacturing to software intelligence. Consequently, funding is increasingly directed toward specialized robotics software developers. Dermot McGrath, founder of the Shanghai-based technology consultancy ZenGen Labs, stated that manufacturers have concluded that future profitability depends on the robot's "brain" rather than its physical components.

This trend marks a new phase in the global technological competition, particularly between China and the United States, with American firms currently maintaining a lead in several advanced AI systems. The shift indicates a strategic pivot in China's tech sector toward complex cognitive capabilities for industrial and service automation.