In the previous decade, China has actually built a strong structure to support its AI economy and made substantial contributions to AI internationally. Stanford University's AI Index, which assesses AI advancements worldwide across different metrics in research, development, and economy, ranks China among the top three countries for global AI vibrancy.1"Global AI Vibrancy Tool: Who's leading the worldwide AI race?" Artificial Intelligence Index, Stanford Institute for Human-Centered Artificial Intelligence (HAI), Stanford University, 2021 ranking. On research study, for instance, China produced about one-third of both AI journal documents and AI citations worldwide in 2021. In financial financial investment, China represented almost one-fifth of worldwide personal investment funding in 2021, bring in $17 billion for AI start-ups.2 Daniel Zhang et al., Artificial Intelligence Index report 2022, Stanford Institute for Human-Centered Artificial Intelligence (HAI), Stanford University, March 2022, Figure 4.2.6, "Private financial investment in AI by geographic area, 2013-21."
Five types of AI business in China
In China, we find that AI business usually fall into among 5 main classifications:
Hyperscalers develop end-to-end AI technology capability and team up within the community to serve both business-to-business and business-to-consumer business.
Traditional market companies serve consumers straight by establishing and adopting AI in internal change, new-product launch, and client service.
Vertical-specific AI companies establish software application and services for particular domain usage cases.
AI core tech suppliers offer access to computer vision, natural-language processing, voice recognition, and artificial intelligence capabilities to develop AI systems.
Hardware companies offer the hardware infrastructure to support AI need in computing power and storage.
Today, AI adoption is high in China in financing, retail, and high tech, which together account for more than one-third of the nation's AI market (see sidebar "5 kinds of AI business in China").3 iResearch, iResearch serial market research on China's AI market III, December 2020. In tech, for instance, leaders Alibaba and ByteDance, both household names in China, have become understood for their highly tailored AI-driven consumer apps. In reality, most of the AI applications that have been commonly adopted in China to date have actually remained in consumer-facing industries, moved by the world's biggest web customer base and the ability to engage with customers in brand-new methods to increase consumer commitment, profits, and market appraisals.
So what's next for AI in China?
About the research
This research is based upon field interviews with more than 50 professionals within McKinsey and throughout markets, in addition to extensive analysis of McKinsey market evaluations in Europe, the United States, Asia, and China specifically in between October and November 2021. In performing our analysis, we looked beyond business sectors, such as financing and retail, where there are currently mature AI use cases and clear adoption. In emerging sectors with the greatest value-creation potential, we concentrated on the domains where AI applications are currently in market-entry stages and could have a disproportionate effect by 2030. Applications in these sectors that either remain in the early-exploration phase or have fully grown industry adoption, such as manufacturing-operations optimization, were not the focus for the purpose of the research study.
In the coming decade, our research indicates that there is significant chance for AI development in new sectors in China, including some where innovation and R&D spending have generally lagged worldwide equivalents: vehicle, transportation, and logistics
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The next Frontier for aI in China might Add $600 billion to Its Economy
Carole Reinke edited this page 5 months ago