In the past years, China has developed a solid structure to support its AI economy and made significant contributions to AI worldwide. Stanford University's AI Index, which evaluates AI advancements worldwide throughout various metrics in research, advancement, and economy, ranks China among the top 3 countries for global AI vibrancy.1"Global AI Vibrancy Tool: Who's leading the international AI race?" Artificial Intelligence Index, Stanford Institute for Human-Centered Artificial Intelligence (HAI), Stanford University, 2021 ranking. On research study, for example, China produced about one-third of both AI journal papers and AI citations worldwide in 2021. In economic investment, China represented nearly one-fifth of worldwide private financial 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 location, 2013-21."
Five kinds of AI companies in China
In China, we find that AI companies normally fall into among 5 main categories:
Hyperscalers develop end-to-end AI technology ability and collaborate within the environment to serve both business-to-business and business-to-consumer business.
Traditional industry business serve consumers straight by developing and embracing AI in internal transformation, new-product launch, and client services.
Vertical-specific AI companies establish software application and services for particular domain use cases.
AI core tech companies supply access to computer system vision, natural-language processing, voice recognition, and artificial intelligence capabilities to develop 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 nation'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 instance, leaders Alibaba and ByteDance, both family names in China, have become known for their extremely tailored AI-driven consumer apps. In fact, most of the AI applications that have actually been widely adopted in China to date have remained in consumer-facing industries, propelled by the world's largest web customer base and the capability 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
This research is based on field interviews with more than 50 specialists within McKinsey and across markets, in addition to comprehensive analysis of McKinsey market assessments in Europe, the United States, Asia, and China specifically between October and November 2021. In performing our analysis, we looked outside of business sectors, such as financing and retail, where there are already mature 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 phases and could have an out of proportion impact by 2030. Applications in these sectors that either remain in the early-exploration stage or larsaluarna.se have mature industry adoption, such as manufacturing-operations optimization, were not the focus for the purpose of the study.
In the coming decade, our research shows that there is tremendous opportunity for AI growth in brand-new sectors in China, including some where innovation and R&D spending have typically lagged international equivalents: automobile, transportation, and logistics
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The next Frontier for aI in China might Add $600 billion to Its Economy
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