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China’s AI Integration Drives New Smart Economy Paradigm

Compiled from a report by China Daily on March 13.

China is accelerating the integration of artificial intelligence (AI) into core industrial and business processes, creating new opportunities for enterprises and investors as the country transitions into a smart economy. Industry leaders and scholars emphasize that AI is no longer just a supportive tool—it is becoming a strategic driver of process innovation, efficiency gains, and industrial competitiveness.

Recent guidance in China’s 2026 Government Work Report encourages the deep application of AI to “create new forms of smart economy,” signaling policy support for technology-driven modernization. Experts stress that successful AI adoption requires more than deploying isolated systems; it necessitates system-wide digital transformation.

Jiang Qiping, deputy director of the academic committee of the China Management Science Society, explained that enterprises must embed AI into core operational flows to unlock its full potential. “Integrating AI into business processes enables companies to convert technological potential into real industrial momentum,” he said.

International observers also see China’s AI-driven transformation as a major economic lever. Muhammad Hamayun, a scholar from Multimedia University in Malaysia, noted that AI is enabling enterprise-level process restructuring, with implications for productivity, competitiveness, and regional economic modernization.

Industry-Scale Impact and Market Growth

China’s core AI sector surpassed 1.2 trillion yuan ($174.5 billion) by the end of 2025, with projections indicating AI-related industries could reach over 10 trillion yuan by 2030 under the 15th Five-Year Plan. This massive scale has captured international attention, as investors seek exposure to AI-enabled industrial upgrades and digital transformation initiatives.

Guo Wei, chairman of Digital China, highlighted the company’s “AI for Process” mechanism, which integrates AI across production, sales, and service functions to enhance efficiency, coordination, and decision-making. Li Gang, Digital China’s CTO, added that this approach shifts AI from a support function to a core operational driver, allowing enterprises to move from traditional information architectures to intelligence-centric development models.

Case in Point: Voyah’s Digital Transformation

Digital China’s process-driven AI model has produced tangible outcomes for Voyah, a high-end smart new energy brand under Dongfeng Motor Corporation. By integrating large AI models into cross-functional operations and knowledge governance, Voyah has achieved end-to-end operational efficiency, supporting both strategic growth and customer delivery excellence.

Xu Yuance, head of digital large model applications at Voyah, commented, “Embedding AI across production, sales, and service processes generates far greater value than simple efficiency gains. This systematic approach underpins high-quality delivery and strengthens inter-team collaboration.”

Implications for International Investors

For global investors, China’s AI integration presents multi-layered opportunities:

  • Industrial leaders adopting AI are likely to outperform peers in efficiency and innovation.

  • AI infrastructure and service providers stand to benefit from the growing demand for process-centric solutions.

  • Cross-border partnerships leveraging AI for production, logistics, and energy optimization are increasingly strategic.

As AI evolves from concept to a practical engine of smart economy growth, China’s enterprises are setting benchmarks for both domestic competitiveness and global industrial standards.

Investor takeaway: Focus on companies leading in process-driven AI adoption, as they are positioned to capture efficiency gains, expand market share, and drive industrial innovation in China’s rapidly modernizing economy.

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