China's ambitious drive to integrate artificial intelligence into its industrial sectors faces significant challenges, particularly in high-risk areas such as healthcare and aerospace. Experts at the recent International Data Corporation (IDC) CIO Summit in Shenzhen warn that these critical vertical markets may not be prepared for the shift to autonomous AI agents, despite strong government support.
AI is evolving from traditional applications like chatbots to more advanced systems capable of operating independently within workflows. Liu Xiangyang, chief information security officer at Midea Group, noted that upper-layer software, which includes both consumer-facing applications and internal management systems, will increasingly be replaced by these intelligent agents. These agents are designed to grasp complex business logic and execute various workflows effectively.
Du Yanze, senior research manager at IDC, pointed out the changing role of AI agents, stating, “In the future, 90 per cent of an AI agent’s value will come from industrial expertise.” This shift marks a significant change in the industrial AI value chain, moving the focus from simply building software to embedding industry knowledge within it. As AI systems grow more sophisticated, their ability to tackle industry-specific challenges will be crucial.
The potential for AI agents to enhance operations is substantial. For example, they could cut the time needed to process a supply chain order from two hours to just a few minutes through automated data analysis, planning, risk assessment, and decision-making. Such advancements could boost efficiency across various sectors, but integrating these technologies presents its own set of challenges.
Beijing’s “AI Plus” strategy aims for a significant increase in AI adoption across manufacturing, agriculture, and services, targeting over 70 per cent by 2027 and more than 90 per cent by 2030. However, China’s industrial software landscape still lags, especially in advanced manufacturing areas like semiconductor design automation, which heavily relies on foreign technologies. This reliance complicates the country’s goals of achieving self-sufficiency in AI-driven industrial applications.
As China advances its AI integration strategy, stakeholders in high-risk sectors must assess the readiness of their environments for such transformative technologies. The value delivered by AI agents will depend not only on their technological capabilities but also on the depth of industry-specific knowledge they possess. The success of this initiative will largely hinge on addressing the existing gaps in expertise and technology within the industrial sector.
The stories that move AI & crypto markets — before the market reacts.
Free. 7am ET. Five stories. 62,400 readers.
