# China’s less developed software-as-a-service (SaaS) market stands to gain even as AI models continue to improve.

*genai · news · 2026-04-19 · South China Morning Post*

## Key points

- Chinese AI model companies lack sufficient industry expertise to replace established domestic SaaS firms.
- China's SaaS market is expected to collaborate with AI model companies rather than be disrupted by them.
- Despite global SaaS sell-offs, Chinese SaaS companies integrating AI are experiencing significant robust growth.
- Kingdee International projects 1 billion yuan in 2024 AI product revenue, up 180 percent year-over-year.

**Companies:** Salesforce, Adobe, Kingdee International Software Group
**Countries:** China, United States

[Read the full story on South China Morning Post](https://www.scmp.com/tech/tech-trends/article/3350586/ai-not-eating-chinas-software-market-turbocharging-it-hsbc-analyst)

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