Artificial intelligence has risen to the level of a "national strategy," driven by its significant technology spillover effects. As AI continues to develop across various industries such as security, healthcare, education, and finance, strong collaborations are enabling resource integration. Analysts believe that AI is expected to reach a turning point from cloud to edge this year, becoming a new driver, opportunity, and engine for strategic emerging industries. In 2018, it was dubbed "the year AI defines everything."
According to the "Three-Year Action Plan for Promoting the Next-Generation Artificial Intelligence Industry Development (2018–2020)" issued by the Ministry of Industry and Information Technology, the next three years will focus on intelligent networked vehicles, service robots, drones, and medical imaging-assisted diagnostic systems. Breakthroughs are expected in eight smart product areas, including video image identification systems, intelligent voice interaction, translation systems, and smart home products. Specific performance indicators for key smart products are set to be achieved by 2020. Companies like HKUST, Hikvision, NavInfo, Hang Seng Electronics, and Inspur have already shown their leadership in these sectors.
From a market perspective, AI became a major investment theme last year and is expected to remain a hot topic this year. Shanxi Securities noted that sectors like smart cars and cloud computing are currently favored by investors, with higher valuations, while big data and security monitoring still carry relatively lower valuations. As profitability improves next year, the sector’s investment value is expected to become more prominent.
In 2018, AI continued to shape the A-share market. Leading companies in the field, such as HKUST, demonstrated strong growth and technological capabilities. HKUST, a pioneer in intelligent voice and AI, expanded into education, healthcare, legal, and automotive sectors. The company launched smart classroom solutions used in over 3,000 schools and introduced China's first personal intelligent hospital. Its revenue grew significantly, reflecting strong performance in the AI-driven economy.
Hikvision, the world's largest security vendor, integrated AI into video surveillance, enhancing predictive capabilities. Its gross margin reached a three-year high, driven by the shift toward high-margin AI products. Institutional analysts believe Hikvision is well-positioned to benefit from the ongoing transformation in video surveillance.
NavInfo, a key player in autonomous driving, expanded its business through the acquisition of Jiefa Technology. It now operates as the only A-share listed company combining high-precision maps with smart car chips. With partnerships like BMW, NavInfo is positioned to gain significant market share in navigation services.
Hang Seng Electronics launched four smart financial products, including intelligent investment platforms and customer service tools. Despite challenges in traditional business lines, the company maintained its leadership through AI innovation, achieving strong revenue growth.
Meiya Boke, a leader in electronic data forensics, expanded its services in government and public safety through big data and AI technologies. The company is well-positioned to benefit from increasing demand for digital governance and smart city solutions.
Overall, 2018 marked a pivotal year for AI in China, with both policy support and market momentum driving rapid development across multiple industries.
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