Future Development Trends of the AI Industry: Core AI Industry Scale to Exceed 450 Billion by 2025
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The recent Central Economic Work Conference emphasized the need to 'accelerate the development of artificial intelligence' in 2024. Currently, AI has deeply penetrated various sectors, from healthcare and transportation to education and entertainment.
UBS Group stated in a report released on Tuesday that the tech industry is just beginning a large-scale growth cycle. By 2027, the widespread application of AI across economies will make it a $225 billion market.
This represents a significant leap from $2.2 billion in 2022, marking a compound annual growth rate of nearly 152%.
UBS expects AI industry revenue to grow 15-fold, from $18 billion in 2022 to $420 billion by 2027. This forecast is 40% higher than UBS's previous estimate, with researchers acknowledging that earlier projections may have been too conservative.
A McKinsey report on AI predicts that China's demand for AI professionals will increase sixfold by 2030 compared to 2022, with a talent gap reaching 4 million.
According to the '2023 AI Talent Insights' report released by Maimai in November, the number of new AI job postings from January to August 2023 matched the total for 2022. The talent supply-demand ratio in the AI industry was 0.63 in 2022 but dropped to 0.39 in the first eight months of 2023, meaning five job openings compete for two candidates.
Future Development Trends of the Artificial Intelligence Industry
In the era of rapid technological advancement, the development of artificial intelligence is an inevitable trend. China possesses a favorable social environment for AI development, excelling in talent cultivation, human resources, and social consumption demand. In recent years, China's intellectual property creation has steadily progressed, with domestic enterprises further solidifying their role as innovation leaders. The international community's confidence in China's intellectual property protection continues to strengthen, providing a robust environment for AI technology development. Even under the impact of the pandemic, China's unique advantages in AI development have emerged through the organic integration of vast industry application scenarios, accumulated R&D capabilities, massive data resources, and an open macro-market environment. Leveraging the broad prospects of the application market, China drives technological innovation, fostering a dual engine of technology and market.
Promoting AI innovation and applications involves formulating policies to empower new industrialization with general AI, implementing AI innovation projects, and accelerating the deployment of large general models in the industrial sector. Deepening the implementation of smart manufacturing projects will drive the intelligent transformation of the entire manufacturing process, including R&D design, production, testing, marketing, and operations management, while vigorously developing smart products, equipment, factories, and supply chains. Advancing digital industrialization will enhance the development of integrated circuits, key software, and other technologies, accelerating the integration and innovation of cloud computing, big data, and virtual reality. Strengthening infrastructure such as 5G, data centers, and computing power, scaling up industrial internet applications, deepening industrial data utilization, and unlocking the potential of data elements will provide "data momentum" for digital transformation.
Potential to Become the World's Largest AI Market in the Future
With the tilt of national policies and the development of foundational technologies like 5G, China's artificial intelligence industry has entered a phase of explosive growth driven by joint efforts from all parties, demonstrating enormous market development potential. The global AI market size has grown from approximately $60 billion in 2016 to nearly $300 billion in 2021. Reports indicate that from 2023 to 2028, the global AI market is expected to grow at a compound annual growth rate of 35%. By 2028, the global AI market size is projected to exceed $521.3 billion. The report shows that in 2020, China's AI industry scale reached 303.1 billion yuan, a 15% year-on-year increase, slightly higher than the global growth rate.
As of now, China's core AI industry scale exceeds 400 billion yuan, with nearly 4,000 enterprises. The Chinese AI industry continues to expand, with significantly accelerated development speed, and is expected to become the world's largest AI market in the future. In the post-pandemic era, the AI industry is poised for rapid growth during the 14th Five-Year Plan period.
Outlook Forecast
Artificial intelligence serves as critical infrastructure for the digital economy in the new era, with the capability to integrate across various industries. An increasing number of sectors and fields are undergoing intelligent transformation at different levels. The new AI era will be a pan-intelligent era, covering far more than just the traditional internet and technology sectors, bringing leaps in productivity and connectivity across society. Supported by industrial policies and gradually健全的市场立法, China's AI market size will experience high-speed growth in the future. As the world's largest AI application market, China has seen rapid implementation of AI technologies across multiple industries and scenarios. The rapid development of AI in China is stimulating economic growth across various sectors, with enormous potential in the application market.
The Artificial Intelligence Industry Research Report is designed to start from the national economic and industrial development strategy, analyzing future policy directions and regulatory system trends in AI. It explores the market potential of the artificial intelligence industry, providing vivid depictions of market changes across multiple dimensions including industrial scale, structure, regional distribution, market competition, and profitability levels based on in-depth studies of key segmented markets. This report offers clear development directions.