China's Generative AI Market Size Expected to Exceed 10 Trillion Yuan - Current Status and Development Trends of the AI Industry
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According to the Ministry of Industry and Information Technology, China's generative AI market size is expected to exceed 10 trillion yuan in 2023.
"Behind the 'Hundred-Model Battle,' what is the core of AI competition?"
The AI boom has brought many disruptive innovations and incremental iterations. The new opportunities arising from the integration of smartphones and large models are reflected in broader AI applications, bringing new possibilities to various industries and products. This makes large models in the smartphone industry a highly promising direction.
How has the technology and physical industry developed in 2023? What are the strategic opportunities for tech companies in AI large models? Behind the continuous cycle-crossing, what is the 'key' to a tech company's success? How will tech companies continue to create social value?
The 2023 China Economic Confidence Sample Observation is here! Inviting you to explore vivo, summarizing the development of China's economy in 2023 through the lens of the smartphone industry, and seeking the innovative drivers for China's economy in 2024 ↓↓↓ The AI boom is both an opportunity and a challenge! What is the 'key' for pioneers to cross cycles?
Currently, smartphones have almost become a necessity on par with food, clothing, housing, and transportation. At the same time, as one of the most complex industries in terms of business models, the smartphone industry's full lifecycle management and end-to-end control will eventually transform it into a software-driven hardware industry.
vivo's Executive Vice President and Chief Operating Officer Hu Baishan stated: "In the past, the essentials of life were considered to be sunlight, air, water, and food. Now, we must add smartphones to that list. Therefore, we have always believed that the smartphone industry has excellent development prospects."
For technology companies, the AI explosion presents both opportunities and challenges. What is the "key" for industry pioneers to navigate through cycles?
In response, Hu Baishan emphasized that user needs and user orientation are the core priorities. Companies must adapt to changes in user demands as the environment evolves. Simultaneously, vivo adheres to the philosophy of "keeping heads down to plant causes"—first doing the right things, then doing things right.
The rise of Chinese smartphone brands is inseparable from their support systems! As Chinese brands continue to make breakthroughs in global markets, Hu noted that Chinese smartphones are highly competitive overseas. This global ascent is closely tied to the rapid development of China's manufacturing and tech supply chains.
"The greatest value of Chinese smartphone brands' rise lies in the growth and strengthening of China's entire tech industry chain," Hu explained. "Thanks to China's manufacturing advantage of 'raw materials in, finished products out,' vivo prioritizes domestic suppliers under equal conditions."
Amid the long-term intense competition in the consumer electronics market, vivo's core strength in weathering cyclical fluctuations is its commitment to technological innovation as the ultimate driver—propelling information civilization forward by advancing societal productivity."
Artificial intelligence is gradually becoming part of people's lives, demonstrating significant influence in the field of disease diagnosis and treatment. Pancreatic cancer, known as the "king of cancers," has an extremely low 5-year survival rate. The latest 2023 data from the American Cancer Society shows a 11%-12% 5-year survival rate for pancreatic cancer patients, while China's latest figure stands at 7.20%.
If patients can be diagnosed early and undergo surgery, the treatment outcomes are relatively better. However, pancreatic cancer is often difficult to detect, with most cases diagnosed at advanced stages. Therefore, using AI technology to assist in early diagnosis of pancreatic cancer and other cancers has become a promising research direction for scientists.
AI demonstrates even greater potential in chemistry, biomedicine, and pharmacology, primarily because it can rapidly discover new substances and invent novel materials.
Everyone gets sick, but excessive antibiotic use in human medicine and animal farming has led to increased bacterial resistance. Years ago, the World Health Organization warned that uncontrolled antibiotic use could leave humanity without effective treatments for infectious diseases in the future.
Artificial Intelligence Industry Status and Development Trends
Artificial intelligence serves as a crucial driver for the new wave of technological revolution and industrial transformation. Since its inception, AI theories and technologies have matured progressively, with expanding application fields. We can envision that future AI-powered technological products will become "containers" of human intelligence. AI can simulate human consciousness and thought processes. While not human intelligence itself, AI can think like humans and may eventually surpass human intelligence.
In recent years, China's artificial intelligence industry has achieved significant results in technological innovation, industrial ecosystem, and integrated applications, entering the global first tier. As a strategic technology leading the future, major global economies now regard AI as a crucial strategy to enhance national competitiveness and safeguard national security.
In China, AI technology has taken root in fields such as security surveillance, smart homes, and education and training. With the rapid development of AI technology, related application deployments are expanding swiftly, offering developers and enterprises more market opportunities in the AI industry.
In recent years, countries have continuously strengthened their strategic layouts for AI, with integrated technological innovation centered on AI becoming a key focus. The industrialization and commercialization of AI-related technologies are accelerating, deepening integration across various industries and fully leveraging its 'leading goose' effect. Additionally, global attention to AI governance has heightened, with the development of safe and trustworthy AI becoming a global consensus.
As emerging technologies such as virtual reality, ultra-high-definition video, and new automotive electronics continue to emerge and intersect with AI, they will drive intelligent transformations in production, lifestyles, and social governance. Meanwhile, AI interacts with and supports next-generation information technologies like 5G, cloud computing, big data, industrial internet, IoT, mixed reality (MR), quantum computing, blockchain, and edge computing. This signifies that integrated innovation characterized by cross-disciplinary convergence is becoming mainstream, with the combined value of multiple emerging technologies enabling AI to deliver greater socio-economic benefits.
According to relevant statistics, the global artificial intelligence industry has grown from $690 billion in 2017 to $3 trillion in 2021, and is expected to exceed $6 trillion by 2025. From 2017 to 2025, it is projected to grow at a compound annual growth rate of over 30%.
Industry Favorable Policies
Artificial intelligence is a crucial component of national strategy, serving as a focal point for future international competition and a new engine for economic development. In recent years, China's AI industry has received significant attention from various levels of government and strong support from national industrial policies. The government has introduced numerous policies to encourage the development and innovation of the AI industry.
Policies such as the Notice on Supporting the Construction of New Generation AI Demonstration Application Scenarios, the Guidance on Accelerating Scenario Innovation to Promote High-Quality Economic Development through High-Level AI Applications, and the Three-Year Action Plan for the Development of New Data Centers (2021-2023) provide long-term guarantees for the development of China's AI industry.
Focus on Building the Shenzhen-Hong Kong AI Industry Cluster
The Qianhai Authority issued the "Several Measures of Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority on Supporting High-Quality Development and High-Level Application of Artificial Intelligence" (hereinafter referred to as the "Measures") as its "No. 1 Document" in 2024, demonstrating Qianhai's determination to vigorously develop artificial intelligence. The focus will be on building an internationally competitive open innovation ecosystem, accelerating the gathering of domestic and international innovation resources, and prioritizing the expansion of AI industrial applications to actively empower the transformation and upgrading of the service and manufacturing industries.
In terms of improving the AI industry ecosystem, Qianhai will support Fortune 500 companies and national-level innovation entities in leading the construction of AI innovation centers, with a maximum reward of 5 million yuan. AI enterprises settling in the Qianhai AI cluster zone will receive an annual rent subsidy of up to 3 million yuan. National-level AI industry organizations establishing a presence in Qianhai will be rewarded with 500,000 yuan.
The supply-demand ratio in the AI industry increased by 53% year-on-year compared to 2022
Recently, Zhihu and Lagou Recruitment jointly released the "2023 Annual Workplace Insight Report," which analyzes various aspects of the workplace status, trends, and attitudes of new professionals in the digital technology sector over the past year.
The report shows that in terms of recruitment trends, the supply-demand ratio in the AI industry increased by 53% year-on-year compared to 2022. Regarding salaries, the average monthly recruitment salary for new professionals was 13,840 yuan, a 7% decrease year-on-year compared to 2022. In terms of the competitive environment, nearly 80% of surveyed new professionals reported working less than 50 hours per week. In terms of work habits, over 80% of surveyed new professionals use AI tools in the workplace to improve efficiency.
President Xi Jinping emphasized that artificial intelligence is a crucial driving force in the new round of technological revolution and industrial transformation. Accelerating the development of next-generation AI is a strategic issue concerning whether China can seize the opportunities presented by this new wave of technological and industrial change.
It is essential to deeply understand the significance of accelerating the development of next-generation AI, strengthen leadership, formulate plans, clarify tasks, consolidate foundations, and promote its deep integration with economic and social development to ensure the healthy growth of China's next-generation AI.
By 2030, China's AI industry is expected to reach 1 trillion yuan in scale.
In recent years, China's AI industry has made positive progress in technological innovation, industrial ecosystems, and integrated applications, positioning it among the global leaders.
As the application of AI technology accelerates and deepens, the vast industrial scale of downstream sectors will create a broad application market for AI in China, indicating enormous potential for future industry growth. It is projected that by 2030, China's AI industry will achieve a scale of 1 trillion yuan.
The Artificial Intelligence Industry Research Report aims to start from the national economic and industrial development strategy, analyze the future policy direction and regulatory system trends of artificial intelligence, explore the market potential of the AI industry, and provide a vivid depiction of market changes from multiple perspectives such as industry scale, industrial structure, regional structure, market competition, and industry profitability based on in-depth research in key segmented market areas, clarifying the direction of development.