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What we should know
about Applied AI In
China
2019
01
Overall Industrial
Environment
02 Unicorns and Market Leaders
03 Cases of Applied AI
Technologies
04 Comparison of U.S., DE and CN
Agenda
01
Overall
Industrial
Environment
2017.07
State Council
realessed “New-
generation AI
Development Plan”
(similar to Industrie
4.0 policy in Germany)
2017.10
AI is mentioned for
the first time and
already a major topic
in the 19th Communist
Party National
Congress
2018.12
Over 20 provinces
have developed
support plans for
landing AI projects.
Scalable support has
increased the market
size of AI to $45 billion.
2018.12
Investment in AI
industry is worth $16
billion. Incrase rate
has decrease greatly
by 40%. 90% went to
the unicorns.
Political and economic support
2020
2025
2030
Focus on big data intelligence, autonomous
intelligence systems, cross-medium intelligence,
swarm intelligence, hybrid enhanced intelligence,
AI foundational theories
Competitive in AI
AI will be applied to medicine, city infrastructure,
manufacturing, agriculture, defense construction, AI laws
& regulations, security assessment & control capabilities
Breakthroughs
Mainly focus on social governance, national
defence construction, industrial value chain
World leader in AI
Political and economic support
Citizens across all ages
accept new applications
quickly
Eagerly curious mindset
Millenniums tend to reduce
every possible step that
requires their physical or
mental efforts
Convenience-oriented gene
International conflicts have
raised citizens’ awareness
and devotion of developing
advanced technologies
Technical patriots
Significant user numbers in
any segment of applications
Massive Data Sets
AI is a new strong driver for
precise target marketing on
social media, e.g. Tiktok
Social Media Advertising
Labor-intense growth
approach isn’t matching
aging society
Disappearing population benefit
Social and cultural support
Layer 1
Layer 2
Layer 3
Companies of censors, AI chips and cloud
computing have grown into huge entities
Underlying layer
Tech companies are concentrated in facial
recognition, NLP and ML
Technology layer
AI has been landed successfully in areas
like safety control, education, transport,
health care, finances.
Application layer
Status quo of AI eco-system
Companies of censors, AI chips and cloud
computing have grown into huge entities
Underlying layer
Tech companies are concentrated in facial
recognition, NLP and ML
Technology layer
AI has been landed successfully in areas
like safety control, education, transport,
health care, finances.
Application layer
Status quo of AI eco-system
Censor
s
AI Chips
Cloud
Companies of censors, AI chips and cloud
computing have grown into huge entities
Underlying layer
Tech companies are concentrated in facial
recognition, NLP and ML
Technology layer
AI has been landed successfully in areas
like safety control, education, transport,
health care, finances.
Application layer
Status quo of AI eco-system
NLP and voice recognition
Facial recognition
Machine learning
Companies of censors, AI chips and cloud
computing have grown into huge entities
Underlying layer
Tech companies are concentrated in facial
recognition, NLP and ML
Technology layer
AI has been landed successfully in areas
like safety control, education, transport,
health care, finances.
Application layer
Status quo of AI eco-system
Transport
Safety control
Logistics
Education
02
Unicorns and
Market Leader
7 Unicorns
Unisound, Pony.ai, Mobvoi,
Horizon Robotics, Megvii,
SenseTime, Cambricon,
2 Unicorns
Tongdun, Yitu Technology,
5 Unicorns
Orbbec, iCarbonX, Cloudwalk, DJI,
Ubtech robotics,
Source: Forbes, Oct. 2018
Geographical (strict) AI Unicorns in China
Name Est. Valuation
DJI $15 billion
Ubtech Robotics $5 billion
SenseTime $4.5 billion
Cambricon $2.5 billion
Cloudwalk $2 billion
Megvii Technology $2 billion
Yitu Technology $2 billion
Horizon Robotics $1.5 billion
iCarbonX $1 billion
Mobvoi $1 billion
Orbbec $1 billion
Pony.ai $1 billion
Tongdun $1 billion
Unisound $1 billion
AI Unicorns in China till Oct. 2018
03
Cases of
Applied AI
Technologies
Feb.
Baidu Apollo
autonomous
driving car
presentation
June
JD delivery with
drones for 618
promotion
June
Tencent AI+
diagnosis platform
Sep.
Country Garden’s cooking
robots and 1000 robot
restaurants in 5 years
Sep.
Alibaba’s smart brain 2.0
Sep.
Iflytek’s scandal of
fake real time
translation
Sep.
NTES entered AI
battle and
announced
AI+AR
Oct.
Cloudwalk National AI
Public Services
Platform
Nov.
Megvii’s contribution to
Lenovo’s photo cameras
Nov.
Xinhuanet first
news anchor
Must-know events of AI in China in 2018
E-commerce has developed digitalization to its advanced popularity. AI has made E-commerce and
existing traditional retailers more accessible for new-age users in China.
Comparison: Hellofresh, Aboutyou
AI applied in retailing
Delivery robots can avoid passing pedestrians, road barriers and vehicles. They’re even able to
adhere to traffic lights and react corresponsive to them. The biggest of the robots can pack a
whopping load of up to 30 packages and reaches a top speed of 15 kilometers (9 miles) per hour.
AI applied in logistics
Almost every city's mayor is talking about smart city, big data, AI and cloud computing. Currently,
there are about 10 Alibaba City Brain projects operating by using AI algorithms to monitor and control
traffic signals and street cameras.
AI applied in city management
AI has helped find missing children, quickly catch outlaws, punish jaywalkers, increase security check
efficiency, and increase checkout efficiencies in all industries in China.
AI applied in security control
Xinhua developed the robot anchor with Chinese search engine Sogou.com and has posted two more
reports from the AI broadcaster on its Twitter feed.
AI applied in humanoid
04
Comparison of
U.S., DE and CN
In Giant unicorns valued
over $2 billion:
China 5
U.S. 5
U.K. 1
In top 100 AI companies:
China 6
Israel 6
U.K. 6
Germany 1 (Twenty BN)
U.S. 70+
Top 100 AI companies till 2018
Things in common
Knowledge about customers is more
structural than that about platforms
Knowledge
Customer-centric VCC might
have not yet come into reality
yet. Unidirectional interaction
might work in VCC
Interaction
Indirect network effects might
not be important for VCC of AI
companies
Network
Young platform companies do
not necessarily grow faster than
old platform companies
Growth
B2B is still the best landing area
for AI technologies. There are
very rare successes in B2C, so
far Bytedance.
Business
Similarities in AI between U.S. and China
Landing Freedom of
experiments
Differences in AI development between DE, U.S. and China
CN easy and fast
U.S. easy and medium
DE hard and slow
CN High
U.S. High
DE Low
Funding Applications
Differences in AI development between DE, U.S. and China
CN easy
U.S. easy
DE hard
CN CV, Robotics
U.S. NLP, ML
DE ML, Robotics
What shall we
expect from
YOU
2019

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Applied AI in China

  • 1. What we should know about Applied AI In China 2019
  • 2. 01 Overall Industrial Environment 02 Unicorns and Market Leaders 03 Cases of Applied AI Technologies 04 Comparison of U.S., DE and CN Agenda
  • 4. 2017.07 State Council realessed “New- generation AI Development Plan” (similar to Industrie 4.0 policy in Germany) 2017.10 AI is mentioned for the first time and already a major topic in the 19th Communist Party National Congress 2018.12 Over 20 provinces have developed support plans for landing AI projects. Scalable support has increased the market size of AI to $45 billion. 2018.12 Investment in AI industry is worth $16 billion. Incrase rate has decrease greatly by 40%. 90% went to the unicorns. Political and economic support
  • 5. 2020 2025 2030 Focus on big data intelligence, autonomous intelligence systems, cross-medium intelligence, swarm intelligence, hybrid enhanced intelligence, AI foundational theories Competitive in AI AI will be applied to medicine, city infrastructure, manufacturing, agriculture, defense construction, AI laws & regulations, security assessment & control capabilities Breakthroughs Mainly focus on social governance, national defence construction, industrial value chain World leader in AI Political and economic support
  • 6. Citizens across all ages accept new applications quickly Eagerly curious mindset Millenniums tend to reduce every possible step that requires their physical or mental efforts Convenience-oriented gene International conflicts have raised citizens’ awareness and devotion of developing advanced technologies Technical patriots Significant user numbers in any segment of applications Massive Data Sets AI is a new strong driver for precise target marketing on social media, e.g. Tiktok Social Media Advertising Labor-intense growth approach isn’t matching aging society Disappearing population benefit Social and cultural support
  • 7. Layer 1 Layer 2 Layer 3 Companies of censors, AI chips and cloud computing have grown into huge entities Underlying layer Tech companies are concentrated in facial recognition, NLP and ML Technology layer AI has been landed successfully in areas like safety control, education, transport, health care, finances. Application layer Status quo of AI eco-system
  • 8. Companies of censors, AI chips and cloud computing have grown into huge entities Underlying layer Tech companies are concentrated in facial recognition, NLP and ML Technology layer AI has been landed successfully in areas like safety control, education, transport, health care, finances. Application layer Status quo of AI eco-system Censor s AI Chips Cloud
  • 9. Companies of censors, AI chips and cloud computing have grown into huge entities Underlying layer Tech companies are concentrated in facial recognition, NLP and ML Technology layer AI has been landed successfully in areas like safety control, education, transport, health care, finances. Application layer Status quo of AI eco-system NLP and voice recognition Facial recognition Machine learning
  • 10. Companies of censors, AI chips and cloud computing have grown into huge entities Underlying layer Tech companies are concentrated in facial recognition, NLP and ML Technology layer AI has been landed successfully in areas like safety control, education, transport, health care, finances. Application layer Status quo of AI eco-system Transport Safety control Logistics Education
  • 12. 7 Unicorns Unisound, Pony.ai, Mobvoi, Horizon Robotics, Megvii, SenseTime, Cambricon, 2 Unicorns Tongdun, Yitu Technology, 5 Unicorns Orbbec, iCarbonX, Cloudwalk, DJI, Ubtech robotics, Source: Forbes, Oct. 2018 Geographical (strict) AI Unicorns in China
  • 13. Name Est. Valuation DJI $15 billion Ubtech Robotics $5 billion SenseTime $4.5 billion Cambricon $2.5 billion Cloudwalk $2 billion Megvii Technology $2 billion Yitu Technology $2 billion Horizon Robotics $1.5 billion iCarbonX $1 billion Mobvoi $1 billion Orbbec $1 billion Pony.ai $1 billion Tongdun $1 billion Unisound $1 billion AI Unicorns in China till Oct. 2018
  • 15. Feb. Baidu Apollo autonomous driving car presentation June JD delivery with drones for 618 promotion June Tencent AI+ diagnosis platform Sep. Country Garden’s cooking robots and 1000 robot restaurants in 5 years Sep. Alibaba’s smart brain 2.0 Sep. Iflytek’s scandal of fake real time translation Sep. NTES entered AI battle and announced AI+AR Oct. Cloudwalk National AI Public Services Platform Nov. Megvii’s contribution to Lenovo’s photo cameras Nov. Xinhuanet first news anchor Must-know events of AI in China in 2018
  • 16. E-commerce has developed digitalization to its advanced popularity. AI has made E-commerce and existing traditional retailers more accessible for new-age users in China. Comparison: Hellofresh, Aboutyou AI applied in retailing
  • 17. Delivery robots can avoid passing pedestrians, road barriers and vehicles. They’re even able to adhere to traffic lights and react corresponsive to them. The biggest of the robots can pack a whopping load of up to 30 packages and reaches a top speed of 15 kilometers (9 miles) per hour. AI applied in logistics
  • 18. Almost every city's mayor is talking about smart city, big data, AI and cloud computing. Currently, there are about 10 Alibaba City Brain projects operating by using AI algorithms to monitor and control traffic signals and street cameras. AI applied in city management
  • 19. AI has helped find missing children, quickly catch outlaws, punish jaywalkers, increase security check efficiency, and increase checkout efficiencies in all industries in China. AI applied in security control
  • 20. Xinhua developed the robot anchor with Chinese search engine Sogou.com and has posted two more reports from the AI broadcaster on its Twitter feed. AI applied in humanoid
  • 22. In Giant unicorns valued over $2 billion: China 5 U.S. 5 U.K. 1 In top 100 AI companies: China 6 Israel 6 U.K. 6 Germany 1 (Twenty BN) U.S. 70+ Top 100 AI companies till 2018
  • 23. Things in common Knowledge about customers is more structural than that about platforms Knowledge Customer-centric VCC might have not yet come into reality yet. Unidirectional interaction might work in VCC Interaction Indirect network effects might not be important for VCC of AI companies Network Young platform companies do not necessarily grow faster than old platform companies Growth B2B is still the best landing area for AI technologies. There are very rare successes in B2C, so far Bytedance. Business Similarities in AI between U.S. and China
  • 24. Landing Freedom of experiments Differences in AI development between DE, U.S. and China CN easy and fast U.S. easy and medium DE hard and slow CN High U.S. High DE Low
  • 25. Funding Applications Differences in AI development between DE, U.S. and China CN easy U.S. easy DE hard CN CV, Robotics U.S. NLP, ML DE ML, Robotics
  • 26. What shall we expect from YOU 2019