AI industry focusing on real-world deployment

The past year has witnessed rapid progress in artificial intelligence-powered smart devices in the country.

Whether at product launches or in interviews with business executives and market analysts, a common view has emerged: AI-enabled products are evolving faster, and AI is no longer confined to displays, but steadily making its way into everyday use.

This momentum is also reflected in the rapid expansion of the industry.

Zhang Yunming, vice-minister of industry and information technology, said estimates show that the number of artificial intelligence companies in China exceeded 6,000 in 2025, with the core sector expected to surpass 1.2 trillion yuan ($170 billion) in scale.

Zhou Hongyi, founder of 360 Security Group, said that the global AI industry is shifting from a race to build ever-larger models toward a focus on real-world deployment.

He noted that competition is increasingly measured by penetration — whether AI can truly move into practical scenarios, going beyond conversation-based functions to deliver real productivity and tangible value.

Zhou's remarks reflect the accelerating move of edge AI toward real-world application.

Edge AI refers to deploying AI models and algorithms directly on end devices such as smartphones, computers and vehicles, enabling data to be processed locally rather than relying entirely on remote cloud servers.

According to a recent report from the China Academy of Information and Communications Technology, edge-based large models are accelerating upgrades across smart devices, ranging from smartphones and computers to wearables and intelligent vehicles, with a growing emphasis on practical problem-solving.

The report estimates that over the next three years, the penetration of AI-enabled smartphones and personal computers in China will climb beyond 50 percent and 80 percent, respectively.

Taken together, the projections point to smart devices moving into an era of on-device intelligence.

In an interview, Zhu Keli, founding director of the China Institute of New Economy, told me that edge AI is reducing excessive reliance on cloud computing by enabling more data to be processed locally, which not only improves response speed, but also enhances privacy and security.

"This shift is driving smart products to move from basic functionality toward greater intelligence, and from passive response to more proactive services," Zhu added.

Policy support is also adding momentum to the rollout of edge AI.

Earlier in January, the Ministry of Industry and Information Technology, together with the Cyberspace Administration of China, the National Development and Reform Commission and five other departments, released an action plan outlining an ambitious push to deepen the integration of artificial intelligence with the manufacturing sector.

The action plan calls for accelerating smart terminal upgrades, strengthening support for edge models and application tool chains, and fostering a broader range of AI-powered devices, including smartphones, computers, tablets and smart home products.

During the conversation, Zhu told me that edge AI is likely to move beyond isolated applications toward more integrated intelligence, as models become lighter and more efficient, lowering the barrier for hardware adoption.

"Application scenarios will also extend beyond offices and entertainment into areas such as homes, healthcare and mobility, gradually shaping more personalized intelligent spaces and services," Zhu added.

Growth, however, also entails structural challenges.

Zhu said China still needs to strengthen its self-reliance in high-end AI chips and foundational software frameworks. He noted that the industrial ecosystem remains fragmented, with limited interoperability among devices, and that the global influence of high-end domestic brands, as well as the maturity of overseas service networks, requires further improvement.

Addressing these gaps, he added, will be essential for the industry to move from scale leadership toward leadership in both technological capability and brand strength.

Artificial intelligence is steadily finding its way into everyday life, moving from the cloud onto the devices people use each day. As smart devices gain the ability to sense, learn and make decisions, edge AI is driving not only faster industrial upgrading, but also a quiet yet profound shift in the way people live and work.

Zhang Chenxu contributed to this story.