CMSC: The significant differences in commercialization paths for AI applications between China and the US, fostering long-term potential in local scenarios.

CMSC released a research report stating that Chinese AI applications, supported by the mobile Internet ecosystem, have shown the advantage of a wide user base and diverse scenarios. Although current products are still primarily tool-based modules, with the improvement of large model capabilities, they are expected to transition towards intelligent body systems in the future. Localized products with high commercial value may be incubated in fields such as education, healthcare, and industry. However, structural differences between China and the US in specialized fields (e.g. education orientation vs personalized learning, closed-loop advertising and e-commerce vs user experience prioritization) are likely to persist in the long term. The main viewpoints of CMSC are as follows: China's AI application development has enormous potential and vast room for growth. In 2023, the explosive growth of ChatGPT signaled a key window period for generative AI to enter the global technological competition and industrial evolution. The widespread adoption of mobile Internet and the highly mature platform ecosystem in China over the past decade have not only provided a broad user base and diversified landing scenarios for AI applications but also offered an ideal "experimentation ground" for rapid iteration and productization of models. Although most AI products are currently in the tool-based, modular stage, with the improvement of basic model capabilities and further enhancement of the ecosystem, AI products are expected to make the leap from demo tools to intelligent body systems. It can be foreseen that in the future, many Chinese companies will nurture AI products with practical value and commercial potential in various fields such as education, healthcare, office, and industry. The development path of China's AI applications is incremental, with enormous potential and vast long-term growth space. Significant differences exist between Chinese and American AI applications in specialized fields There are differences between Chinese and American AI applications in fields such as education, advertising, video generation, and AI Agents. 1) Education: The development of AI education in China and the US shows a structural differentiation between "test-oriented" and "personalized learning-oriented": China focuses on K12 education, emphasizing score improvement and efficiency, with typical representatives being homework assistance and iFLYTEK Co., Ltd.; while the US emphasizes individual development and lifelong education, focusing on heuristic teaching, with representative companies including Duolingo and Khan Academy. 2) Advertising marketing: In China, the focus is on the "content-social-e-commerce-payment" closed-loop, with platforms like Douyin and Alibaba, using AI to improve advertising conversion efficiency and emphasizing commercialization; whereas in the US, companies like Google and GumGum prioritize user experience, privacy protection, and long-term brand value and utilize AI to optimize content matching and contextual advertising placement. 3) Video generation: Chinese and American AI video generation emphasizes the difference between "efficiency-oriented" and "creation-oriented": China, represented by platforms like Kuaishou and ByteDance, focuses on cost reduction, efficiency improvement, and B-end integrated applications, serving a wide range of scenarios including education and e-commerce; while the US, represented by companies like Runway and Luma, focuses on creative expression, content ecosystem building, and supporting personalized creation and artistic exploration. 4) AI Agents: American companies have entered the era of intelligent workflow with AI Agents becoming a key tool to enhance business efficiency; whereas the development of AI Government and Enterprise Cloud (AIGC) products in China lags behind, companies like Kingdee, UFIDA, MARKETINGFORCE, FOURTH PARADIGM are accelerating the intelligent transformation of enterprise services through large models and AI platforms, promoting the landing of AI Agents in financial, human resources, marketing, and other business scenarios. The rise of Chinese and American AI application products offers vast commercialization opportunities 1) SAP: SAP deeply integrates "business AI" into enterprise processes, combined with the generative AI assistant Joule, to promote intelligent and automated upgrades in scenarios such as supply chain, finance, and HR. 2) Salesforce: Salesforce introduces Agentforce to build an enterprise-level central AI agent, enabling flexible deployment and efficient operation of autonomous intelligent agents within CRM systems. 3) Palantir: Palantir combines AIP with ontology technology to build semantic data models for enterprises, achieving AI-driven data governance and automated decision-making. FOURTH PARADIGM is the benchmarking company in China, relying on the self-developed Sage AI platform to provide end-to-end intelligent solutions for industries such as finance, manufacturing, and energy. 4) AppLovin: AppLovin uses AXON 2.0 to enhance advertising bidding precision and efficiency, achieving a double leap in advertising revenue and stock price. Companies such as Easy Click Worldwide Network Technology and MOBVISTA in China are implementing AI-driven full-stack advertising platforms and solutions in global intelligent marketing and programmatic advertising, empowering Chinese companies to go global and automate digital advertising. 5) Figma: Figma is a leading cloud-based UI/UX design platform, with real-time collaboration, cross-platform support, design systems, interactive prototypes, and AI-driven innovation as its core features, driving efficient collaboration and intelligent upgrades in the design process. Companies like MEITU and Wondershare Technology Group in China focus on AIGC visual creative platforms and AI creative software, promoting intelligent production of images and videos. 6) Netflix: Netflix enhances platform monetization and user experience through generative advertising, intelligent recommendations, and AI-assisted content production. Kuaishou in China leverages AI to create a leading multi-modal generation platform, empowering intelligent creation and commercial applications of short videos, images, and audio content. 7) Shopify: Shopify's built-in AI tool Magic helps businesses automatically generate product descriptions, marketing copy, and customer responses, improving content creation and operation efficiency. Beijing Zhidemai Technology in China leverages AI shopping assistants and a trinity of AI engines to create an intelligent consumer decision-making platform, enhancing user shopping efficiency and conversion. 8) Spotify: Spotify uses AI-driven personalized recommendations, speech translation, and advertising placement to continuously improve user engagement and commercial conversion efficiency. 9) Duolingo: Duolingo combines AI voice conversations and video interaction to innovate language learning experiences, while leveraging IP operations to achieve user growth and revenue release. Doushen(Beijing) Education & Technology Inc. in China uses AI technology to build an intelligent teaching ecosystem for language subjects, realizing intelligent education solutions integrating DIGIHUMAN teaching, AI courseware generation, and end-to-end collaboration. Risk Warning: AI business development may not meet expectations, leading to increased industry competition.