China stocks are starting to feel the benefits of AI, but Goldman Sachs says there are reasons not to rush in.

Goldman Sachs raised its target price for Chinese stocks on Monday, estimating that AI adoption could boost earnings growth and potentially bring in $200 billion of inflows. Chinese tech stocks have been on a strong rally,

Goldman Sachs analysts have revised their forecast for Chinas AI-driven economic growth, projecting a faster adoption rate and a greater impact on GDP than previously expected. The bank now estimates AI will boost

Goldman Sachs anticipates that by 2030, it estimated that AI-driven advancements could contribute an additional 0.2 to 0.3 percentage points to the expansion of China's economy

Analysts now expect China to integrate AI into production processes faster, mirroring adoption patterns in developed markets. They anticipate that AI-related capital expenditures in China will rise sharply between 2025 and 2027, with total AI-related spending approaching 1% of GDP by the end of the decade.

While AI and robotics could ‘provide an answer to the ageing society’, related technology could disrupt China’s job market at a sensitive time.