Artificial intelligence-generated content, or AIGC, is expected to become the largest technology transformation since Internet 1.0, UBS analysts said.

Nicolas Gaudois, head of research, ASEAN, and head of APAC technology at UBS, said: "2023 is a transitional year for the tech industry, and we believe generative AI has the potential to be the biggest tech transformation since mobile or Internet 1.0."

According to data from market research company Precedence Research, the global AIGC market size in 2022 was $10.79 billion (77.27 billion yuan), and the number is expected to reach about $73.16 billion by 2030.

Jerry Liu, head of China internet research at UBS, said a new computing cycle will emerge every 10 or 15 years, and AIGC will be the beginning of the next cycle.

According to him, many companies in the Asia-Pacific region are behind their counterparts in developed markets in terms of digitalization. However, policy support for digitalization, coupled with the lower bar to entry provided by AI technology, could present significant growth opportunities for businesses in the region.

"China has more users of generative AI and more data compared to other economies, so I believe there are still many opportunities there," he said.