In the previous decade, China has built a strong structure to support its AI economy and made considerable contributions to AI internationally. Stanford University's AI Index, which examines AI advancements worldwide across various metrics in research, advancement, and economy, ranks China among the leading three nations for worldwide AI vibrancy.1"Global AI Vibrancy Tool: Who's leading the global AI race?" Expert System Index, Stanford Institute for Human-Centered Artificial Intelligence (HAI), Stanford University, 2021 ranking. On research, for example, China produced about one-third of both AI journal documents and AI citations worldwide in 2021. In economic investment, China represented nearly one-fifth of worldwide personal financial investment funding in 2021, drawing 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 one of 5 main classifications:
Hyperscalers establish end-to-end AI technology ability and collaborate within the ecosystem to serve both business-to-business and business-to-consumer business.
Traditional market business serve consumers straight by establishing and embracing AI in internal change, new-product launch, and customer support.
Vertical-specific AI business develop software application and options for specific domain use cases.
AI core tech companies provide access to computer vision, natural-language processing, voice acknowledgment, and artificial intelligence capabilities to establish AI systems.
Hardware companies supply the hardware facilities 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 country's AI market (see sidebar "5 types of AI companies in China").3 iResearch, iResearch serial market research study on China's AI market III, December 2020. In tech, for example, leaders Alibaba and ByteDance, both household names in China, have become known for their extremely tailored AI-driven customer apps. In reality, the majority of the AI applications that have been extensively embraced in China to date have actually remained in consumer-facing markets, propelled by the world's biggest internet consumer base and the ability to engage with consumers in new ways to increase client loyalty, earnings, and market appraisals.
So what's next for AI in China?
About the research study
This research study is based on field interviews with more than 50 experts within McKinsey and across markets, in addition to comprehensive 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 outside of commercial sectors, such as finance and retail, where there are currently fully grown AI use cases and clear adoption. In emerging sectors with the highest value-creation potential, we concentrated on the domains where AI applications are currently in market-entry stages and might have a disproportionate impact by 2030. Applications in these sectors that either remain in the early-exploration stage or have mature market adoption, such as manufacturing-operations optimization, were not the focus for the purpose of the study.
In the coming decade, our research study shows that there is remarkable chance for AI growth in new sectors in China, including some where development and R&D spending have actually traditionally 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
Hubert Sisley edited this page 8 months ago