In order to seize the historical opportunity and achieve the fourth industrial revolution, artificial intelligence has become the most powerful strategy. Those who lead in AI will shape the future of humanity. As scientific and technological progress becomes a key driver of economic growth, China's contribution to its economy from technology has reached 56.2%. In the face of the rapid development of AI, how can we secure the leading position in the industry, integrate it deeply with the real economy, and create new growth points?
**1. The Rise of Artificial Intelligence**
In 2016, when Lee Sedol, the world Go champion, lost to AlphaGo, people were shocked by the power of artificial intelligence. Over the past decade, the three pillars of algorithms, data, and computing have reinvigorated AI. With more than 20 years of internet data stored, the Internet finally found its purpose: training machines. This wave of machine learning and deep learning is seen as one of the most important forces driving technological innovation and social change. The AI era, led by algorithms, is now upon us.
Like the Internet and mobile Internet, AI is becoming a fundamental capability. It is not just a single technology or path but will be integrated into existing production systems, deepening digital transformation across vertical industries and impacting all data-related areas. Deep learning allows machines to learn autonomously, and it is being used in speech, image, and natural language processing, driving the development of new industries. Using AI to increase productivity and create new products and services is essential for economic competition and upgrading.
The continuous advancement of AI's underlying technologies has enabled intelligent machines to move from "recognizing the physical world" to "personalized scene applications." Tech companies see AI as the next step in the digital revolution, and major players are actively investing in AI. In addition to tech giants, large amounts of capital are flowing into AI, with Chinese enterprises' funding approaching that of the U.S. At the national level, governments are pushing AI development, recognizing its growing importance in economic construction and national strategy.
In recent years, the Chinese government has increasingly focused on AI, supporting its development from multiple angles. This year, "artificial intelligence" was first mentioned in the government work report. Following this, the State Council issued the “New Generation Artificial Intelligence Development Plan,†marking AI as a national strategy. The real economy remains the foundation of development, and promoting the integration of AI with the real economy is an inevitable direction for accelerating its transformation and upgrading.
**2. Six Major Areas Helping the Real Economy**
Artificial intelligence is no longer a distant concept. The rise of the new generation of AI has given birth to many application-oriented technologies. From a technical perspective, robotics, natural language processing (NLP), computer vision (CV), speech recognition, and autonomous driving are popular branches within the AI industry. Entrepreneurial enthusiasm is high, with frequent breakthroughs and innovations. Today, application AI has penetrated into various sectors, with different technologies combined into products or services that are changing business practices, accelerating vertical AI commercialization, and sparking a smart revolution.
According to the heat map of AI infiltration compiled by the Tencent Research Institute’s “China-US AI Venture Capital Report,†the medical industry has become the hottest field for AI applications, followed closely by the automotive industry, which is leveraging technologies like autonomous driving. The third tier includes traditional sectors of the real economy such as education, manufacturing, transportation, and e-commerce. Introducing AI across all sectors is a gradual process.
From basic sensory capabilities to analyzing massive data and making decisions, AI is gradually transforming production methods and driving structural changes. Based on current AI capabilities and application enthusiasm, we look forward to how AI will assist the following six real economic sectors.
**Healthcare: From Assisted Surgery to Precision Medicine**
Historically, major technological advances have driven leaps in healthcare. For example, after the Industrial Revolution, antibiotics and diagnostic tools like CT scanners emerged. In the Information Age, minimally invasive surgical instruments were developed.
AI has been widely applied in healthcare. Relying on deep learning, AI has a natural advantage in improving the efficiency and accuracy of medical diagnoses. Various applications aimed at enhancing service efficiency and user experience have emerged.
There are two main directions for AI in medical diagnosis: using computer vision to diagnose diseases through medical imaging, and understanding patient symptoms via NLP to compare and deepen analysis based on disease databases. Some companies are already experimenting with personalized treatment options using big data and machine learning. AI will accelerate the shift from healthcare to prevention, and understanding its applications in various medical scenarios is crucial for future human well-being.
**Smart Cities: Installing a Smart Core in the City**
AI is helping smart cities enter version 2.0. Big data and AI are powerful tools for building smart cities. Daily operations in transportation, energy, and water supply generate vast amounts of data. AI can extract meaningful insights from these data, making them more useful and providing new paths for smart city development.
In urban governance, AI can be used for real-time traffic analysis, automatic resource allocation, and traffic flow management. Self-driving car production is already competing with established players like Mercedes-Benz and tech giants. Future autonomous driving will greatly improve urban traffic efficiency and build integrated transportation systems.
Computer vision is rapidly entering the smart security field. Tencent’s U-Tian Eye system uses facial recognition and public security data modeling to provide intelligent security solutions for law enforcement and the security industry.
**Smart Manufacturing: The Next Stop for Automation**
Manufacturing is the pillar of the real economy. The AI era brings significant opportunities for China’s “Made in China 2025†initiative, promoting the transformation and upgrading of the manufacturing sector. Manufacturing is moving from automation to intelligence.
First, machines are being replaced by intelligent robots. Traditional robots are just CNC devices that cannot adapt to changing environments. High-precision, high-efficiency, and adaptable robots will enable mass customization in small-batch, multi-species production.
Second, AI is not only about physical robots but also about intelligent manufacturing systems supported by smart factories and supply chains. Through AI, design, manufacturing, and equipment processes will continue to gain new energy, increasing efficiency and even bringing disruptive changes to production and organizational models.
**Smart Retail: Accelerating Physical Store Upgrades**
The retail industry is among the most benefited by AI development. Driven by Amazon Go, various unmanned retail solutions are emerging. With the decline of the demographic dividend and rising labor costs, unmanned retail is gaining momentum. Unmanned convenience stores can improve operational efficiency and reduce costs.
Face recognition technology provides a new payment experience. China’s “Paint Face Payment†was listed among MIT’s top ten breakthrough technologies. By using vision equipment, Wi-Fi tracking, sensors, and passenger flow analysis, retailers can offer targeted marketing and service recommendations, along with consumer behavior reports.
Retailers can use AI to streamline inventory and warehouse management. In the future, AI will help the retail industry focus on consumers, creating flexible and convenient retail experiences that enhance user satisfaction in a fragmented information environment.
**Smart Service Businesses: The “Know You†Service Entrance**
Bots are AI virtual assistants that interact with users on information platforms. In the coming user-centric IoT era, Bots will become more intelligent, serving as the entry point for the next generation of mobile search and diverse services. In life services, Bots can provide weather forecasts, traffic inquiries, news, online shopping, and translation. In professional services, Bots can understand user needs through scenario-based knowledge maps and offer tailored customer support.
Virtual assistants are not meant to replace humans but to free them from repetitive tasks, enabling higher-level thinking, innovation, and management.
**Intelligent Education: Future-Oriented “Adaptive†Learning**
The application of AI in education is still in its early stages. Combining speech and image recognition with educational scenarios will be used in personalized learning, automated grading, and voice assessments. AI improves language learning efficiency through voice evaluation and semantic analysis. AI does not replace teachers but helps them become more efficient educators. With algorithm-driven standard evaluations, students receive tailored learning support, forming a future-oriented adaptive education model.
Currently, many Chinese AI companies are transforming and reshaping various sectors. Under the influence of the AI revolution, old industries will emerge in new forms, creating new industries. The integration of AI and the real economy is not only the industrialization path of the AI industry, but also the indicator for traditional industry upgrades.
**3. The Impact of Expanding Three Levels on the Real Economy**
From an economic perspective, the impact of new technologies is measured by total factor productivity. AI is expected to change the foundation of economic development, having a broad and transformative effect on society and creating more economic benefits:
**First, Improve Production Efficiency**
As a new production factor, AI creates a virtual workforce that can handle complex tasks requiring adaptability and agility. Traditional automation is limited to specific tasks. AI-based intelligent automation can flexibly solve problems in many fields, improve the efficiency of the real economy, reduce production costs, and open up new economic growth areas.
**Second, Further Reduce Transaction Costs**
The Internet platform model reduces transaction costs in traditional economic activities by reducing information asymmetry. With machine learning, more precise service matching can be achieved, optimizing resource allocation further.
**Third, AI Will Bring a Data Economy**
According to the UK government, the data industry could bring £241 billion in growth to the UK between 2015 and 2020. Only through AI can we manage the massive data generated by the fast-growing analytical data industry. These data gold mines will also bring unpredictable growth opportunities to the economy.
**4. Promote the Integration of AI and the Real Economy**
Advanced economies around the world fully recognize the power of AI. After 60 years of ups and downs, this round of AI revolution has finally left the lab and become the driving force of the next industrial revolution. The government strengthens top-level design from a strategic perspective, while companies accelerate development from the bottom-up, building the industrial ecosystem.
In the “New Generation Artificial Intelligence Development Plan†issued by the State Council, it clearly states that China aims to become a global AI power, striving to reach world-leading levels in AI by 2030. With the advantages of population and data, China has a natural edge in this global AI revolution. For China, it is now an opportunity to seize the chance and overtake in corners. To unlock the economic potential brought by AI, all sectors need to cooperate to promote the development of the AI industry and drive the integration of AI with the real economy.
**Talent Training: Promote Technological Progress**
Currently, the competition in the AI field is mainly about talent. Compared to developed countries, China still faces talent gaps in AI, including professional academic and R&D personnel, as well as a large number of low-skilled workers in the future AI industry. A core technical personnel training system should be established, strengthening AI discipline construction, promoting talent exchange between enterprises and academia, and building a solid talent base to ensure the healthy development of the industry. Additionally, the government should create multi-disciplinary training programs, improve the scientific and technological literacy of the public, and even develop a “lifelong learning plan†to prepare for a changing future.
**Increase Data Openness: Promote Data Governance**
Data is at the heart of AI development. Although China has the largest amount of data in the world, it still lags behind in data openness and trading. Governments worldwide are shifting from “information disclosure†to “data openness.†On one hand, the government should increase data openness, and on the other, promote data exchange between enterprises, universities, and public departments, encouraging collaboration and sharing to foster world-class conditions for AI development.
At the same time, AI development raises new challenges for data governance, requiring a balance between data openness and privacy protection to enhance trust in the AI field.
**Deepen the Exploration of the Real Economy**
The power of AI requires depth and breadth. From the lab to practical application, AI must bridge the commercialization gap. When the 19th National Congress report refers to “artificial intelligence,†it emphasizes deep integration with the real economy and promotes AI at the application level. Technology and data itself need to find valuable scenarios to apply, forming products or solutions that deliver value. Currently, we are still in the early stage of AI application, with many industries and fields yet to be combined with AI. Especially in the real economy, there are many sub-sectors that need to better understand AI capabilities, reorganize their processes, and through continuous optimization of data and applications, break through scenes one by one, ultimately forming a new map of the AI society.
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