Edited by Ping an Securities: "Internet +" strategy will be upgraded to "AI+", domestic artificial intelligence will encounter tuyere again.

1. "Internet +" strategy will be extended to "AI+" strategy.

The outbreak of artificial intelligence stems from the overall improvement of three elements: a significant increase in computing power, a significant reduction in computing costs; a major breakthrough in algorithms, deep learning algorithms have been widely used; massive data provide support for algorithm implementation and optimization.

Ping an Securities believes that artificial intelligence will lead the wave of the fourth global industrial revolution, and the strategic outline of domestic AI+ has emerged. With the continuous improvement of the penetration rate of artificial intelligence, its influence in global economic development will gradually accumulate.McKinsey research shows that AI may contribute an additional $13 trillion in GDP increment to the world in 2030 (compared with 2018), driving GDP growth by an average of about 1.2% per year, which is comparable to the impact of the first three general technology revolutions in human history (steam engine, electrification, informatization).

At present, major countries have taken AI as a strategic option, and countries and regions such as the European Union and Japan have issued strategic plans.The outline of China's "AI+" strategy is taking shape, AI has been positioned as an important starting point for deepening economic restructuring, and the "Internet +" strategy will be extended to the "AI+" strategy.

2. The development of domestic artificial intelligence industry is accelerating, and the prospect of integration with traditional industries is worth looking forward to.

China's artificial intelligence industry continues to develop and improve, forming a relatively complete industrial chain. At present, the domestic artificial intelligence terminal application products are rich, computer vision, natural language processing, robot and other technologies are deeply integrated with security, transportation, medical, education and other traditional fields.

In the future, "AI+" will be the main theme of domestic artificial intelligence development, and "policy, technology and demand" will jointly promote the deepening and landing of the strategy.Ping an Securities expects that by 2020, the market size of China's artificial intelligence core industry will exceed 160 billion yuan, while the market size of related industries brought about by integrated development will exceed one trillion yuan.Among them, Beijing, Shanghai, Guangdong and other provinces and cities will lead the development of the industry in the future because of their advanced technology and complete industrial chain.

3. Carding of the three driving forces of artificial intelligence in China.

The driving Force of ① Policy

2017 is the strategic deployment period at the national level: the State Council's "New Generation artificial Intelligence Development Plan" was issued.

The second half of 2018 to 2018 is the period of intensive introduction of local policies: in the second half of last year, the Ministry of Industry and Information Technology officially released the "three-year Action Plan for promoting the Development of the New Generation artificial Intelligence Industry (2017-2020)". The basic policy framework of artificial intelligence in China has been built.

In 2019, under the background that the tasks of domestic artificial intelligence top-level planning and regional layout have been basically completed, the landing of policies will be the focus.。

Especially this year.On October 31, the political Bureau of the CPC Central Committee held the 9th collective learning on the current situation and trend of artificial intelligence development.. In learning, the embryonic form of "AI+" strategy is put forward, and it is pointed out that it is necessary to promote the deep integration of artificial intelligence with the same, secondary and tertiary industries, promote the reform of various industries with artificial intelligence technology, and cultivate new growth points and form new momentum in the fields of middle and high-end consumption, innovation leadership, green and low carbon, shared economy, modern supply chain, human capital services, etc.

According to the development planBy 2020, the scale of China's artificial intelligence core industry will exceed 150 billion yuan, driving related industries to exceed 100 billion yuan.。

Driving Forces at the Technical level of ②

In addition to the successful landing of speech recognition and GPU accelerators, robot automation process software, computer vision, UAV, predictive analysis, VR, machine learning and other products are likely to achieve large-scale industrialization in the next five years.In these new areas, not only independent end products can be formed, but also solutions integrated with vertical industries can be formed, and the market potential is huge.。

③ is the driving force at the demand level

The transformation and development of domestic economy and society needs the "empowerment" of artificial intelligence in the future.. At present, China is actively promoting the "Internet +" and industrial strategy.

Internet + mainly solves the problem of connection, which derives all kinds of services through connection, while Industry 4.0 mainly solves the problem of improving the information level of industrial manufacturing links.

It is difficult to meet the needs of future enterprise development by simply solving the problems of connection, informatization and automation.On the basis of the above two strategies, enterprises need to achieve intelligence and have the ability to make decisions, that is, to find the "brain" of "Internet +" and "Industrial 4.0". Artificial intelligence is the best choice.。

In 2017, the scale of domestic artificial intelligence core industry was 70.85 billion yuan, an increase of 43.5% over the same period last year. To achieve a scale of 150 billion yuan by 2020Then the industry will double in three years.。

"AI+" will be the main theme in the futurePay attention to the in-depth integration of computer vision, natural language processing, robot and other technologies with traditional fields such as security, transportation, medical treatment, education and so on.。

4. Investment suggestions

Ping an Securities is firmly optimistic about the development of domestic artificial intelligence industry, especially after China regards artificial intelligence as an important starting point of economic transformation, there is more room for development in integration in the future.

Basic layer: tide information, dawn of Chinese science

Application layer: pay attention to the application of voice, computer vision, autopilot, predictive analysis and other technologies in the AI+ (customer service, security, medical, automobile, finance, etc.) market, such as iFLYTEK, Haikang WeiTV, Suzhou Koda, Weining Health, etc.