Global AI Companies Reach 36,000, Huge Market Potential in Future Applications: Exploring the Current Status and Trends of AI Industry Development
-
The report titled 'Panoramic Outlook on AI-Driven Transformation: The Tipping Point (2023)' (hereinafter referred to as the 'Report'), jointly released by KPMG and Zhongguancun Industrial Research Institute on the 4th, stated that as of the end of June 2023, there are 36,000 AI companies globally, with the U.S., China, and the U.K. leading in numbers.
The Report noted that as of the end of June 2023, the U.S. accounts for 34% of the global total number of AI companies, China for 16%, and the U.K. for 7%. Together, these three countries account for over 50% of the global total. There are 291 unicorn companies in the global AI sector, with the U.S. and China having 131 and 108, respectively.
Kunming Introduces 10 Measures to Accelerate AI Industry Development
Recently, the Kunming Municipal Government Office issued the 'Several Measures to Accelerate the Development of the AI Industry in Kunming (Trial)' (hereinafter referred to as the 'Measures'), proposing 10 measures across five areas: infrastructure development, computing power construction, industrial chain building, application scenarios, and environmental optimization, to support the development of the AI industry.
The Measures specify a focus on attracting internationally competitive and industry-leading innovative and technologically advanced enterprises in the AI sector to accelerate the formation of vertical industrial clusters and regional industrial ecosystems. Support will be provided for the development of AI and related industries, encouraging enterprises to establish AI industry empowerment centers and other innovation and entrepreneurship platforms, with comprehensive evaluations leading to funding subsidies ranging from 200,000 to 1 million yuan and rent reduction support.
In China, AI companies are primarily concentrated in Beijing, Guangdong, Shanghai, and Zhejiang, forming a tripartite balance among the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area. In terms of AI unicorn companies, Beijing leads with 41, followed by Shanghai and Guangdong with 24 and 23, respectively.
Current Status and Trends in AI Industry Development
Artificial Intelligence is a branch of computer science that seeks to understand the essence of intelligence and produce intelligent machines capable of reacting in ways similar to human intelligence. Research in this field includes robotics, speech recognition, image recognition, natural language processing, and expert systems. Since its inception, AI theory and technology have increasingly matured, and its applications have continued to expand. It is conceivable that future technological products powered by AI will serve as 'containers' of human wisdom.
The artificial intelligence industry covers a relatively broad range of sectors, primarily including the foundational layer, technical layer, and application layer, encompassing various technologies and application scenarios. Currently, China's AI industry landscape is still maturing, with substantial development opportunities across upstream, midstream, and downstream segments. The AI industry chain is clearly defined, divided into the foundational layer, technical layer, and application layer. The foundational layer supports AI's in-depth development through data or computing power, such as sensors, chips, and cloud computing, primarily involving data collection and processing. Since the release of the New Generation Artificial Intelligence Development Plan on July 8, 2017, with active responses from industry, academia, and the government, the AI technology industry has entered a phase of rapid development. As the engine of the Fourth Industrial Revolution, the growth of the AI technology industry will become a key driver for national and regional economic transformation and upgrading. With breakthroughs in scientific foundations and implementation platforms, emerging technologies such as brain-inspired computing, deep learning, and reinforcement learning signal the growth of intrinsic momentum, marking a new stage in AI development.
In recent years, China has introduced multiple policies on the new generation of AI, forming a development pattern led by key regions and characterized by diverse growth. China's AI industry is moving toward large-scale implementation. The eastern region of China exhibits stronger AI development, with three major industrial clusters centered around Beijing, the Yangtze River Delta, and Guangdong. Currently, China's new-generation AI open innovation platforms are led by Baidu, Alibaba Cloud, Tencent, iFlytek, and SenseTime, focusing on autonomous driving, city brains, medical imaging, intelligent speech, and intelligent vision. Over the past few years, due to strategic prioritization and the efforts of domestic enterprises, China has become a globally recognized leader in AI. However, it is crucial to recognize that global AI competition is intensifying, with the landscape continuously evolving, necessitating a sense of urgency.
AI is an essential infrastructure for the digital economy in the new era, capable of integrating with various industries. An increasing number of sectors are undergoing intelligent upgrades at different levels. The new AI era will be a pan-intelligent era, extending far beyond traditional internet and tech industries, bringing leaps in productivity and connectivity across society. With supportive industrial policies and improving market legislation, China's AI market is expected to grow rapidly, surpassing 300 billion yuan by 2025. As the world's largest AI application market, China has seen rapid AI adoption across numerous industries and scenarios. The rapid development of AI in China is stimulating economic growth across sectors, with immense market potential.
Chinese AI companies have achieved significant breakthroughs in core technologies, leading globally in fields like autonomous driving and speech recognition. Data security and privacy protection are receiving increased attention, with the government introducing regulations and policies to strengthen oversight. China's AI industry holds influence in international competition, actively participating in standard-setting and technical collaboration. Looking ahead, China's AI industry is poised for continued growth, contributing significantly to economic development and societal progress.
The current artificial intelligence industry still faces six major challenges: cutting-edge research and industrial practice are not yet closely connected; there is a huge talent gap; data silos and fragmentation are evident; reusable and standardized technology frameworks, platforms, tools, and services are not yet mature; some areas suffer from premature development and blind investment; and the difficulty of entrepreneurship is relatively high, with early-stage teams needing more support. Among these, the talent shortage is particularly severe. In the U.S., over half of data scientists have more than 10 years of experience, while in China, 40% of researchers have less than five years of experience. China currently has fewer than 30 university research labs dedicated to AI. As AI technology continues to mature, more robots or intelligent programs will act as human assistants, helping people complete repetitive or dangerous tasks. However, with the widespread adoption of AI, people may face increasing challenges related to security, privacy, and ethics. Currently, AI applications across industries are gradually entering a phase of deep professional integration, facing challenges in technical specialization, ecosystem development, and regulatory standardization.
The AI industry research report aims to analyze future policy trends and regulatory developments from the perspective of national economic and industrial strategy, explore the market potential of AI, and provide a vivid depiction of market changes—including industry scale, structure, regional distribution, competition, and profitability—based on in-depth studies of key segments, offering clear guidance for development.