The Chinese government is actively promoting artificial intelligence (AI) innovation, viewing its application in industrial sectors as crucial for advancing new industrialization efforts.

Leading companies like Shougang Group have successfully implemented AI-powered systems, resulting in over a 20% increase in production efficiency and a 35% reduction in defects.

Chinese firms, particularly in the steel and display panel manufacturing sectors, are increasingly adopting AI technologies to enhance operational efficiency and drive industrial upgrades.

Industry insiders report a significant decrease in the costs of large AI models, making them more accessible as productivity tools for enterprises.

With decreasing costs, companies such as Baidu and Kuaishou are focusing on AI's role in the industrial internet, further promoting its adoption across various sectors.

China has nearly 10,000 digitalized workshops and intelligent factories, with over 400 recognized as national benchmarks in smart manufacturing, indicating substantial progress in digital transformation.

Analysts suggest that better alignment between AI supply and demand can enhance performance, reduce costs, and improve efficiency within the industrial sector.

BOE Technology Group is leveraging AI for various stages of display panel manufacturing, including quality inspection and defect repairs, leading to improved efficiency and reduced labor costs.

At the 2025 Global Digital Economy Conference in Beijing, Shougang's AI innovation was recognized as one of the top 10 applications, underscoring China's ambition for industrial upgrades through AI.

Experts highlight that China's extensive manufacturing base and rich data resources provide a strategic advantage for developing a leading AI industrial ecosystem.

Despite advancements, challenges remain, including limited customer outreach from AI service providers and a lack of knowledge about AI technologies among manufacturing firms.

Collaboration between tech developers and factory operators is essential to overcome these challenges and facilitate the broader adoption of AI in the industrial sector.