Investment bankers and financiers at the 5th Global Financial Leaders' Investment Summit, concluding on Wednesday, are betting on China's potential to lead AI applications as the AI race enters the "show me the money" phase.

"AI has to have some productivity," said Zhang Lei, founder of Hillhouse Investment, elaborating on the widespread "show me the money" call for returns from mounting capital expenditure. Investors now expect AI to be applied in every industry -- manufacturing, health care, services and consumption, he said, adding that Asia will play a big role because it has more solid use cases than everywhere else.

"China is going to lead in physical AI, because its advanced manufacturing facility is the best in the world," James Lydotes, chief investment officer of equities at a New York-based investment firm, told Xinhua on the sidelines of the event.

Lydotes said that U.S. frontier labs and China are the biggest sources of AI innovation, and he will be closely watching developments in factory automation in China to cash in on relevant investment.

China's Ministry of Industry and Information Technology said late last month that it is drafting policies for next-generation smart manufacturing to deepen the integration of artificial intelligence and manufacturing. The measures aim to integrate AI across the entire manufacturing chain and develop new manufacturing models that help firms cut costs, raise efficiency and better meet diverse market demands.