Artificial intelligence drives digital transformation and drives many industries

Since March 2017, China has entered a new phase of digital transformation driven by artificial intelligence (AI). This shift marks a pivotal moment in the country’s economic evolution, with AI becoming a central force reshaping industries and society. Experts emphasize that the industry must adapt to digital integration, academic institutions should collaborate closely with businesses to cultivate AI talent, and the general public needs to enhance their "digital literacy" to keep pace with this rapid change. Professor Chen Xiaobo, Director of the Center for Internet Development and Governance Research at Tsinghua School of Economics and Management, recently released a comprehensive report titled *“Digital Transformation of China’s Economy Driven by Artificial Intelligence: Research on the Social Cognition and Application of Artificial Intelligence in China”* in collaboration with Baidu. The report highlights the growing influence of AI across various sectors and underscores the need for coordinated efforts from all stakeholders. According to Professor Chen, one of the most notable features of AI's rise is its transition from specialized domains to mainstream applications. Countries are not only focusing on technical breakthroughs but also on how AI impacts economic growth and social development. As AI becomes more embedded in daily life, it is reshaping industries such as finance, retail, manufacturing, healthcare, security, and transportation. Wu Wenjie, a partner at Baidu Capital Management, noted that China has been quick to adopt AI in practical applications. In fields like security and financial technology, AI has already made significant strides. From algorithmic trading to smart investment solutions, AI is transforming traditional practices. Moreover, autonomous driving, which integrates multiple AI technologies, holds immense commercial potential. Talent remains a critical factor in AI development. Professor Chen Xiaobo stressed that while AI requires substantial investment, the real challenge lies in cultivating skilled professionals. Despite global demand, there is a shortage of experienced AI experts, and China is no exception. A recent article in *Nature* highlighted that China needs a large, high-level AI workforce to maintain its position as a global leader in AI. According to estimates from the Ministry of Industry and Information Technology in 2016, China will require around five million AI professionals to meet industry demands. For the general public, improving "digital literacy" is essential. This does not mean everyone needs to become a programmer or data scientist, but rather to understand AI concepts, applications, and future trends. Individuals should learn how to integrate AI into their professional and personal lives. For instance, art students can leverage AI tools in digital media and animation to enhance their creative expression. Additionally, as AI raises concerns about data security and user privacy, collaboration among governments, companies, and academia is crucial. Establishing clear regulations and ethical guidelines will ensure responsible AI development and protect users' rights. In conclusion, the AI-driven digital transformation presents both challenges and opportunities. By fostering talent, enhancing digital awareness, and ensuring ethical use, China can harness the full potential of AI to drive sustainable economic growth.

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