Artificial Intelligence (AI) technologies have disrupted and are simultaneously transforming consumption, production, and society by improving efficiencies and reducing costs. The Notes from the AI frontier - Insights from hundreds of use cases discussion paper from McKinsey Global Institute estimates AI has the potential to annually create more than $5 trillion in value, across nine business functions in 19 industries. Despite this, the What's your AIQ? study from the global management consulting Accenture, found several large businesses around the globe still do not fully recognize the value of AI.
The AI-related fundings have globally grown nearly 60% CAGR since 2010 —led mostly by startups. Many of those vanguardist new companies are based in China, which is now worldwide leading the AI revolution. Chinese startups have filled more than 8,000 AI patents in the five years to 2015, equivalent to a 190% growth rate —partly driven by having the largest digital user base in the world, allowing them generating new data (mainly from mobile users) fastly than any other country.
China has outpaced other leading markets and is now a disruptive powerhouse in deep learning, intelligent robotics, sensors, and predictive maintenance. The How Artificial Intelligence can drive China's growth analysis shows that AI could boost by 27% the Chinese productivity by 2035. Industries in China are using their fast-growing domestic platform economy to not only strengthening their bottom line (by taking advantage of process automation through AI) but their top line as well (by harnessing AI to transform the entire business models). China is entirely creating new categories of products and services, together with new markets and driving growth: their GDP growth could increase from 6.3% to 7.9% by 2035.
Chinese AI environment is expanding due to the multi-stakeholder scene among both private and public sectors. An example is their National Development and Reform Commission funding a deep-learning lab from Baidu (their most powerful AI company) to lead this virtual/digital network of researchers; they are aiming to solve computer vision, biometric identification, intellectual property rights, and human-computer interaction problems from wherever they happen around their country. Several startups in China are building in-house capabilities, working with partners, and buying a few technologies from the outside.
Many AIQ high-scored Chinese companies are advancing the Fourth Industrial Revolution through its strength in AI, focusing on three strategic priorities and leveraging their strengths to succeed abroad: technology, data, and people. Their startups are working hard on adhering to the principle: AI for the people, by the people. Companies are not eliminating people but elevating them —as it is not just about automating what people do but augmenting their capabilities. AI-based business practices and technologies in China remain committed to both human-centric and responsible AI (transparent, accountable and fair).
Breakthroughs require businesses not just to develop innovations, but to scale them —successful startups are pivoting their core products and services to new ones while continuing transforming their core. China is worldwide leading the AI revolution by going beyond using AI to do things differently and using it to do different things to reach its potential growth.