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1. China’s AI Development and
Landscape
J u n e 2 0 1 9

2. Data, Computing Power and Algorithms Feed AI Growth
Deep
Neural
Network
Traditional
Neural
Network
Data
Computing
Algorithms
Gaming
Percep-
tion
Decision
Feedback

3. AI Is New Electricity
AI is everywhere
AI is making a huge difference
in all walks of life

4. Tech Giants Have Advanced Computing Power,
Algorithms and Data
Baidu:AI-First Company
Source: Company data
• Early AI adopter
• Begin using machine learning
for search in 2010,and deep
learning in 2012
• Super-large-scale Artificial
Neural Network
• Trillions of webpages
• Billions of search data
• Hundreds of thousands of
servers
• LargestGPU clusters in
China
Speech
Recognition
Image
Recognition
User
Portrait
NLP
• Machine cognition
• Speechsynthesis and recognition
• Accuracy rate 97%
• ComputerVision
• Accuracy rate 99.7%
• Able to communicate with
people naturally and capable
of understanding human
intentions
• Based on big data, machine learning
• About 1 billion user portraits
Data
Computing
Algorithms

5. AI Expected to Drive up ~$16 Trillion GDP Value in 2030
Source:PWC

6. 5
AI enabled vertical fields
AI Core tech
IOT/Big Data
AI-Driven Value Creation Lies in A Wide Range Of
Fields

7. AI Value Differs Developed vs. Developing Countries

8. Starting Points and Potentials Differ
Close to 50% industrial and agricultural
contribution
Low per capita GDP, 1/5 of US
20% in industrial and agriculture
Mostly service oriented
8%
41%
9%
5%
8%
29%
China GDP Composition (2017)
Agriculture, Forestry, Fishing
and Hunting
Construction,Manufacturing
and Other Industries
Retailing
Logistics
Finance, insurance, Real
Estate, Rental, and Leasing
Other Services
1%
19%
12%
3%
21%
31%
13%
USA GDP Composition （2017）
Agriculture, Forestry, Fishing
and Hunting
Construction,Manufacturing
and Other Industries
Wholesale and Retail Trade
Logistics
Finance, insurance, Real
Estate, Rental, and Leasing
Education, Entertainment
and other services
Government
Source: Public data

9. Industrial
communication
equipment
AI + Intelligent Manufacturing: Over 10 trillion
USD Market Size in 2025 Globally
China Market Global Market
Unit: 100 Mn USD Unit: 100 Mn USD
Smart Devices
Software
Cloud

10. The USA and China Advantaged in AI Revolution
Source:PWC

11. China: Lack of Legacy Infrastructure Creates Leapfrogging
Opportunity
Source: KKR

12. US and China Now About The Same in AI Company Setup
Source: CICC

13. AI Investment Focus US and China
Source: CICC,Tencent

14. China Unique Structural Advantages in Data and Funding
Source: CB Insights

15. 14
AI Industry Landscape in China
Applications
Technology
Infrastructure

16. Q: What are opportunities for Europe?
15