Artificial intelligence (AI), a driving force behind the Fourth Industrial Revolution, is rapidly transforming the global economic and industrial landscape. Fuelled by simultaneous breakthroughs in algorithmic innovation and computing power, AI has evolved from a research-driven discipline into a catalyst for large-scale commercial deployment. The rapid emergence of generative AI has accelerated this structural expansion.
As capital flows intensify, the investment focus within the AI sector is shifting from aggressive scale and valuation growth towards operational efficiency, practical deployment and ecosystem stickiness. Infrastructure, especially foundational models, chipsets and cloud-based training platforms, continues to attract significant funding. In addition, competitive differentiation increasingly depends on the ability to create tailored, high-frequency use cases across industries.
Despite impressive momentum, global AI deployment remains. Regional differentiation is evident across innovation strategies, regulatory frameworks and talent distribution. China has become a leading force in patent activity, accounting for nearly 40% of applications globally.
The United States retains strength in foundational research and chip design, supported by leading universities and technology companies. The European Union is emphasising governance, ethics and data protection, building a rules-based competitive edge through regulatory leadership.
The interplay between computing power, data availability and ethical responsibility is becoming increasingly central. While the AI ecosystem is maturing, with integrated loops of hardware, algorithms and data pipelines, challenges persist around privacy, data security, energy consumption and equitable access to computing resources. These issues are no longer secondary factors but strategic constraints that companies must rethink carefully.
As of 2024, the global AI market was valued at over RMB 700 billion, maintaining annual growth rates above 20%. Generative AI has seen rapid adoption with new products reaching global scale at unprecedented speed. DeepSeek, for example, became one of the fastest-growing generative AI platforms worldwide, reaching more than 30 million daily active users within 20 days of launch.
The next phase of the global AI race will be technological performance or hardware design, but by the ability to build sustainable, adaptive ecosystems that connect research excellence with compliant, socially responsible and scenario-driven applications. Companies that can deeply embed AI into sector-specific workflows, while meeting ethical and regulatory expectations, will be best positioned to lead in the next stage of digital transformation.