Minsheng Securities: Users' demand for intelligence is increasing, and AI search may be the first to achieve large-scale commercial landing.

Minsheng Securities released a research report stating that the continuous evolution of user information retrieval methods is expected to make AI search the first commercially viable C-end super application. Currently, there is an urgent demand from users for intelligent summarization and proactive provision in the paradigm of AI search, prompting global technology giants to enter the market. The transformation of traditional search is expected to bring about massive business opportunities, forming a new search model of platform-type AI search and vertical-type AI search with multiple entry points such as software + terminal, reshaping the overall search industry. Key points of Minsheng Securities: AI search - the inevitable choice to change productivity. The transition from traditional linear search to AI search is essentially the continuous evolution of user information retrieval methods. AI search technology not only generates content, but also focuses more on understanding semantics and personalized recommendations. In addition, AI search technology can connect different Internet service scenarios and build an intelligent product ecosystem. Currently, many giants including 360 Security Technology Inc., Iflytek Co.,ltd., Alibaba, Tencent, ByteDance, Baidu, as well as newcomers like Yue Zhi An Mian, Zhi Pu Qing Yan, have launched AI search products with their own characteristics, reflecting the urgent demand from users for intelligent summarization and proactive provision in the paradigm of AI search. AI search is expected to become the first commercially viable C-end super application. The global search market is undergoing a complete transformation from search mode to content presentation. Utilizing deep learning and natural language processing, AI search technology can better understand user query intentions compared to traditional search engines, providing more customized search results. Breaking the linear threshold of traditional search engines through intelligent extraction and proactive answering: Intelligent extraction: The essence of AI search lies in accurately understanding the intent of search queries and executing complete task processes. By using technologies such as structured knowledge graphs and semantic networks, AI search can provide relevant entity information and relationships in search results, helping users quickly find the answers they need. Proactive answering: In addition to directly answering questions, AI search extends to proactive answering and thinking about other related factors, truly realizing an intelligent mode of "addressing others' concerns." Global technology giants are all entering the field of AI search, with platforms and specialization complementing each other. From Perplexity initiating the industrialization process of AI search to OpenAI, Microsoft, Google, and others joining the wave, AI search has become a battleground for giants. While major foreign giants are joining the trend of AI search, domestic companies are also launching their own large models, leading to a flourishing landscape and the gradual formation of a dual-drive pattern of platform + hardware in the domestic AI search industry. Platform-type AI search companies have natural advantages, with user stickiness and historical accumulation forming core barriers. From 360, Baidu AI search to WeChat's "Search", and TikTok's AI summarization, the correctness of the platform + AI search path is continuously proven: continuous improvement of models, enhancement of user experience, increase in user stickiness, and driving a virtuous cycle of recommending more products to users. However, at the same time, the trend of verticalization in the AI search scene is also continuing, leading search engines to focus more on specific fields and provide specialized content. Investment recommendations: TENCENT (00700), 360 Security Technology Inc. (601360.SH), Iflytek Co.,ltd. (002230.SZ), Kunlun Tech (300418.SZ), Hangzhou EZVIZ Network (688475.SH), Edifier Technology (002351.SZ), among others. Risk Warning: Intensified industry competition; uncertain technological development; policy and regulatory risks.