Digital Technology Development Forms the Driving Force Behind China's AI Security Industry Growth - Analysis of China's AI Security Sector
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In modern society, AI technology is ubiquitous: facial recognition, autonomous driving, intelligent recommendations... The rapid development of AI has shown humanity various possibilities for the future society. However, with this comes increasing concerns about AI security issues. "While we use AI technology to solve security problems, we must also pay attention to preventing new security threats brought by AI technology. This is a key consideration in setting the questions for this competition," said an expert from DBAPP Security Research Institute. To maximize the role of AI technology as a "double-edged sword," the application of talent is crucial.
China's AI Security Industry
Currently, a new round of technological revolution and industrial transformation is emerging. Driven by new technologies such as 5G, big data, cloud computing, and deep learning, artificial intelligence (AI), as an important strategic technology for new infrastructure, is accelerating its development and integrating innovatively with various industries, triggering chain-like transformations. Particularly in the field of cyberspace security protection, AI has unique value and advantages in threat identification, situational awareness, risk scoring, malicious detection, governance of harmful information, detection of fraudulent calls, and identification of gray and black industries. The application demand is experiencing leapfrog development, producing significant spillover effects.
From the perspective of product layout and application fields, the main competitors in China's AI security industry have similar product layouts in this sector, primarily focusing on big data analysis-driven security management platform products. From the perspective of technical characteristics and levels, the products of Chinese enterprises are based on big data platforms. By collecting diverse, heterogeneous, and massive logs and utilizing technologies such as correlation analysis, machine learning, and threat intelligence, they provide security operation tools for security personnel. Industry enterprises rely on integrated modeling scenarios such as correlation, rules, and statistics for complete conception, mastery, and implementation. Through active monitoring, precise protection, intelligent analysis, and operational collaboration, they achieve proactive management of security objects and timely analysis of security incidents, showing little difference from domestic main competitors. According to the Security Technology Patent Report released by IPRdaily in July 2023, China is the country with the largest global layout of security technology invention patents, with patent applications 2.23 times that of the second-ranked United States. Among the top ten applicants for security technology patents, Chinese companies occupy seven spots, with Ant Group, Huawei, and Tencent Group ranking in the top three.
The research team believes that artificial intelligence is the engine of future productivity, further enabling intelligent transformation across industries based on digitalization. Security technology acts as the steering wheel, consistently guiding various emerging technologies toward beneficial paths, fostering integrated innovation and development between the two.
The application of AI technology is one of the future directions for robotics. While AI brings numerous conveniences, it also introduces a series of security risks. The establishment of the AI Security Working Group strengthens research and protection in AI technology security, ensuring safety and privacy in AI usage.
In 2023, China added 368 new AI enterprises, with the adoption rate of generative AI reaching 15%. In key industries such as manufacturing, retail, telecommunications, and healthcare, the adoption rates are 5%, 13%, 10%, and 7% respectively. The market size of generative AI is approximately 14.4 trillion yuan.
While empowering industries, AI also presents risk challenges, including data security, algorithm security, application security, and industry security issues.
Currently, a new wave of technological revolution and industrial transformation is emerging. Driven by technologies such as 5G, big data, cloud computing, and deep learning, AI—as a crucial strategic technology within new infrastructure—is accelerating its development and integrating innovatively across all sectors of society, triggering chain reactions of transformation. In recent years, the artificial intelligence industry has accelerated its development. According to calculations by the China Academy of Information and Communications Technology, China's core AI industry reached 508 billion yuan in 2022, an 18% year-on-year increase, with over 4,000 enterprises. China's AI industry has now entered the global first tier. Projections indicate that by 2030, China's core AI industry will exceed 1 trillion yuan, while the global AI market will reach $16 trillion. A March report by the U.S. Chamber of Commerce noted that "nearly all businesses and government agencies" will adopt AI within the next 20 years, with profound impacts on society, economy, and national security.
Industry experts predict the next 5 to 10 years will be crucial for AI development. For generative AI alone, Gartner expects it to mature within 2 to 5 years, offering substantial application opportunities and commercial potential as a key future technology trend.
As AI increasingly integrates into work and daily life scenarios, data collection, storage, and application face growing risks. Data security challenges manifest in five key aspects: replicability, vulnerability to leaks, diverse sources, significant harm potential, and regulatory difficulties - all inherent to data characteristics.
Currently, AI is being applied in threat analysis, strategy generation, situational awareness, and offensive/defensive operations, with proven effectiveness in protection. Capgemini research shows 80% of companies rely on AI for threat identification and attack prevention. IBM notes that companies without AI security spend three times more on cyberattack defense compared to those with automated AI defense systems.
The development of digital technology, escalating security threats, and national policies/regulations collectively drive China's AI security industry growth as fundamental, driving, and propelling forces respectively. With the intensifying competition in the AI security industry, mergers and acquisitions as well as capital operations among large enterprises are becoming increasingly frequent. Outstanding AI security companies both domestically and internationally are placing greater emphasis on analyzing industry markets, particularly conducting in-depth research on current market environments and trends in customer demand changes. This is aimed at preemptively capturing the market and gaining first-mover advantages. As a result, a large number of excellent brands have rapidly emerged and gradually become leaders in the industry. Zhongyan Puhua utilizes various proprietary information processing technologies to collect, organize, process, analyze, and transmit vast amounts of data in the AI security industry market. It provides clients with comprehensive information solutions and consulting services, minimizing investment risks and operational costs while seizing investment opportunities and enhancing corporate competitiveness.