China has established nearly 10,000 smart factories and digitalized workshops nationwide, according to the China Internet Development Report 2024. Released during the ongoing 2024 World Internet Conference (WIC) in east China’s watertown of Wuzhen, the report highlights the country’s integration of artificial intelligence (AI) and advanced digital technologies into manufacturing across industries.
Smart Manufacturing and AI Adoption
Among these facilities, 421 have been designated as national-level smart manufacturing demonstration factories, with over 90 percent leveraging technologies like AI and digital twins. A digital twin is a virtual model of a physical object, spanning its lifecycle and using real-time data from sensors to simulate behavior and monitor operations. These advancements signal China’s increasing focus on accelerating industrial digitization and enhancing productivity through technological innovation.
Progress in AI Innovation
China is also making significant strides in AI innovation. By the end of 2023, the country held 378,000 valid AI invention patents, an annual growth of 40 percent—1.4 times the global average growth rate, according to the report.
Global Trends and Challenges in the Digital Era
The World Internet Development Report 2024, also released at the summit, provides a global perspective by analyzing internet trends across 52 countries and regions through key metrics including digital innovation, infrastructure, and cybersecurity.
While countries worldwide are upgrading digital infrastructure and adopting next-generation technologies, challenges remain. Cybersecurity threats, fragmented data governance frameworks, and the need for cohesive international digital trade rules are pressing concerns.
Challenges in AI Development
One specific challenge lies in AI development. According to the 2023 AI Index Report by Stanford University, industrial entities produced 51 prominent machine learning models in 2023, compared to just 15 from academic institutions. Limited access to funding, data, and computational tools in academia has driven a talent migration toward industry, further consolidating its dominance in AI innovation.
Another concern is the ethical misuse of AI. Data from the AI, Algorithmic and Automation Incidents and Controversies reveals a 26-fold surge in AI-related controversies and misuse cases since 2012, underscoring the urgency of addressing ethical issues in AI applications.
Reference(s):
China builds some 10,000 smart factories, Internet conference reveals
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