China Artificial Intelligence Software Market Guide
Artificial intelligence (AI) software is the focus of investment and attention by Chinese companies. China's AI software market continues to grow rapidly and competition is fierce. AI software companies use one or more AI technologies to help companies interpret events, complete decision support and automation, and take corresponding actions. Solutions from these vendors can address the needs of part or the entire life cycle of the AI value chain, including ideation, use case discovery, data collection, data enhancement, AI development, as well as AI deployment, monitoring and calibration.
The future of China’s AI software market is affected by three key forces:
- Relevant regulations
- Localization
- Enterprise needs
Two key forces affecting the future of China's AI software market
- China Artificial Intelligence Software Market Guide
- Relevant regulations will promote the sustainable development of the market
AI has become a national strategy in China, with the purpose of promoting economic development and strengthening social governance. Considering the regulatory environment, data privacy, AI ethics, and explainable AI are key to success. Relevant regulations will also promote changes in the entire AI industry to develop in a sustainable and healthier way.
A guideline set by the Chinese government states that data is the fifth factor of production after land, labor, capital and technology. To support national-level AI development plans, data and analytics leaders need to prioritize improving data exchange, data quality, and data governance, and accelerate the cultivation of data markets. For vendors focused on data integration, data annotation and annotation, this guideline means more opportunities along the AI value chain.
The Eastern Digital and Western Computational Project, officially launched in February 2022, will greatly improve the efficiency of computing power and meet the development needs of AI.
The demand for "localization" will promote the differentiation of the AI software market
A variety of segmented business applications have begun to embed AI functions, resulting in the development of two types of intelligent applications in the market. Among them, one type of smart applications comes from traditional domestic software manufacturers, and these manufacturers will benefit from localization. Another type of smart applications comes from manufacturers that focus on specific fields or vertical industries. As the degree of localization of used software increases, it is expected that more Chinese customers will use the above solutions in the future, and these solutions will gradually mature in various vertical industries.
Diverse enterprise needs will give rise to richer AI delivery methods
In the process of digital transformation, enterprise organizations are gradually maturing and need to use more data and background information to produce beneficial results. Drive decisions. More and more Chinese enterprises and institutions hope that AI investment can quickly create value. The increasingly complex business environment means that Chinese enterprises and institutions need to use a variety of traditional and advanced AI technologies to adjust their decision-making processes and gain competitive advantages.
China’s AI software market is growing rapidly and competition is fierce
China’s AI software market will continue to grow rapidly. Gartner predicts that the market's revenue will grow from US$4.767 billion to US$13.858 billion in the next five years, with a compound annual growth rate (CAGR) of 28%.
There are more than 3,000 manufacturers in China's AI software market, most of which are AI generalist manufacturers that can independently provide customers with natural language processing (NLP), computer vision (CV) and machine learning (ML). technology. These vendors provide end-to-end personalized enhancement services, consulting services and operational services to solve customers' specific business problems. As the market continues to expand, the number of Chinese AI software companies will also grow.
Data and analytics leaders need to transform the hotly-hyped “AI middle office” concept into strategic solutions
Currently, most of the value of AI comes from one-time point-to-point solution. In the 2022 CIO and Technology Executive Survey, only 4% of Chinese respondents deployed MLOps.
Zhongtai is very popular, and different manufacturers use various definitions in marketing. "AI middle platform" is a concept that arises in the promotion of many solutions. China’s data and analytics leaders need to take a clear-eyed view of the AI middle platform and focus on reusable AI artifacts, including data, models and implementation pipelines, in experiments and operations.
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