Has AI created a "bubble"? Will power shortages hinder AI development... A special interview with Chen Lan, Partner at Deloitte China.

Every reporter｜Zhang Huai Shui Every editor｜Huang Bo Wen

On March 24, the world’s attention once again converged on Boao, Hainan.

On that morning, the Boao Forum for Asia 2026 Annual Conference released two flagship reports, namely the “2026 Annual Report on the Asian Economic Outlook and Integration Process” (hereinafter referred to as “the Report”) and the “2026 Annual Report on Sustainable Development in Asia and the World.”

The Report pointed out that as the global focus of artificial intelligence development shifts from Europe and America to Asia, Asian economies are transforming from AI (artificial intelligence) followers to leaders, reshaping the global AI innovation order, thanks to their large digital populations, rich application scenarios, and systematic policy support.

With the global AI boom, is it possible that an investment “bubble” has already emerged in the AI industry? In the context of rising global electricity prices, will AI development face serious obstacles? In response to these questions, a reporter from the Daily Economic News conducted an exclusive interview with Chen Lan, the partner in charge of research at Deloitte China, on-site at the annual conference.

Ms. Chen Lan is one of the main interpreters of the flagship report at the Boao Forum for Asia 2026 Annual Conference, with over twenty years of experience in research related to new retail and the digital economy. She has been responsible for and participated in commissioned projects from national ministries such as the Ministry of Industry and Information Technology and the Ministry of Commerce.

Boao Forum for Asia 2026 Annual Conference. Image source: Provided by the organizer.

Current AI applications continue to create substantial value

According to the latest data released by the National Bureau of Statistics, driven by technological innovation and commercial application, the scale of the artificial intelligence industry continues to grow. It is expected that by the end of the “14th Five-Year Plan,” China’s AI-related industry scale will exceed 10 trillion yuan, moving towards a broader growth space.

According to statistics from relevant research institutions, the global artificial intelligence market size is expected to reach $757.58 billion by 2025, a year-on-year increase of 18.7%. As the world’s second-largest economy, China’s AI industry scale is showing explosive growth driven by coordinated factors such as policy support, market demand, and technological iteration.

At the same time, some foreign scholars have recently predicted a potential burst of the AI bubble, believing that “if the AI boom collapses, the impact will not be as severe as that of the internet bubble, but the shock will be widespread.” So, has a bubble truly emerged in the AI field? In an exclusive interview with a reporter from the Daily Economic News, Chen Lan stated that although AI companies currently have high valuations, the practical application of AI technology has indeed improved efficiency and reduced costs. For example, Deloitte has increased its audit efficiency by three times using AI Agents, significantly enhancing data processing and risk identification efficiency, reducing the labor costs of many repetitive tasks.

Chen Lan believes that bubbles typically arise when capital investment far exceeds the ability to implement technology and when revenue expectations are long-term disconnected. However, as AI applications continue to create substantial value, it cannot simply be concluded that a bubble exists.

The Report pointed out that the development of AI in Asia presents structural characteristics of “coexisting tiers, differentiated paths, and significant cooperation potential.” Among the leading representatives, China has formed a full-chain maturity and scalable implementation capability, while Japan and South Korea focus on high-end manufacturing and industrial automation; Singapore, as an application demonstration model, plays a governance demonstration and platform hub role; and emerging economies like India and Indonesia, as potential nurturing types, leverage market potential and application scenarios as breakthrough points.

AI technology applications have shifted from point-driven to systemic integration

Huatai Securities’ research report pointed out that amid the conflict between the U.S. and Iran, global oil prices have surged, leading to rising coal prices overseas. Based on expectations, by 2026, the price center of 5500 kcal thermal coal in China’s northern ports will rise to around 750 yuan/ton.

According to calculations by Huatai Securities, if the price of 5500 kcal thermal coal at the port rises by 50 yuan/ton (including tax), the transmission of energy prices will lead to a 2.9% increase in wholesale electricity prices, corresponding to an increase of 2.0% to 2.2% in industrial electricity prices.

Will the rise in global electricity prices impede AI development? Chen Lan told a reporter from the Daily Economic News that the shift of the global AI development focus from Europe and America to Asia is mainly due to factors such as talent, industrial policy, and application demand, rather than the power supply itself. While power shortages do pose challenges to large-scale computing power deployment, stable power supply is especially important for AI infrastructure.

“Currently, many countries are restarting nuclear power generation or developing new energy sources to ensure the stable operation of computing power and data centers in the face of energy shortages. However, AI development relies more on computing power optimization, data governance, and industrial policy, rather than a single issue of power supply,” Chen Lan said.

In addition, focusing on China’s artificial intelligence development, this year’s government work report first proposed “creating a new form of intelligent economy.” From “artificial intelligence +” to “creating a new form of intelligent economy,” what new signals are being released behind this?

Chen Lan stated in an exclusive interview with a reporter from the Daily Economic News that the transition from the “artificial intelligence +” concept put forward a few years ago to this year’s first mention of “intelligent economy” in the government work report reflects an upgrade in the policy level’s positioning of AI. “Artificial intelligence +” emphasizes the empowerment of AI technology to individual industries or business scenarios, while “intelligent economy” is a systematic concept that emphasizes using AI as a core driver for industry upgrades, business innovation, and optimization of social services.

“This releases an important signal that artificial intelligence is moving from the stage of technological breakthroughs to the stage of large-scale applications. The application of technology has shifted from point-driven to systemic integration, and in the future, there will be more policies and resources supporting the construction of an intelligent economy, rather than just promoting AI technology itself. This also means that artificial intelligence will be more deeply integrated into enterprise production, operations, and service systems,” Chen Lan said.

Cover image source: Event organizer