Editor's note: The artificial intelligence (AI) boom is wiping away the globe, with governments and leading tech companies from various countries allocating resources to focus on AI initiatives. AI-related stocks are also reaching new heights in the capital market.
[Anchor]Hello everyone. Welcome to DDN Business Insider. I'm Yun Fei Chan. This year, a new wave of artificial intelligence (AI) wiped out the planet. Why are governments and the leading tech companies around the world increasing their resources and focusing on AI initiatives? Why do AI-related stocks repeatedly hit record highs in the capital market? To discuss these topics, we invited Wang Bin's renowned economist Song Jinguyi, co-founder of Kozean and vice-president of the China Industrial Development Promotion Association (CIDPA).
Hello everyone. When you mention the current rise of AI waves, many may remember the emergence of Deepseek at the end of last year. However, over the past six months, the sustainability of this AI boom has been largely due to collaborative efforts by governments and large tech companies. Song, what do you think is the fundamental reason why different stakeholders are concentrating on the AI sector at the same time?
Song song Currently, governments and major companies around the world are focusing on the AI sector as they recognize that AI is no longer a technology. This is a central driver of future economic growth, social development and national competitiveness. Especially in the context of great power competition, AI has become an important area of national competitiveness, following nuclear weapons and space exploration. Anyone who will learn the highlands of AI technology in the future can take initiatives in the international landscape. Therefore, the government is raising AI to the national strategic level.
This widespread attention and explosion in the Anchor oras sector was last seen on the Internet, also underscoring the concept of “Internet Plus.” What are the similarities and differences between the logic and influence of these two explosions?
Song suly The current AI sector explosion shares many similarities with the previous Internet sector explosion, but there are significant differences. For example, from an impact scope perspective, the Internet sector has primarily influenced the consumption and information sectors as it changed people's consumption habits. In contrast, the current explosion of the AI sector is not only about changing consumption, but also about a major transformation of production, research, healthcare and many other areas.
Amid this wave of AI enthusiasm, several perspectives suggest that China's AI industry is moving from the “technology layout” phase to the early stages of the “industrial explosion.” The assessment is based on the fact that the term “artificial intelligence plus” has been mentioned multiple times this year in the National People's Assembly and is expected to become a core component of the new production capacity during the 14th five-year plan. Song, how do you see changes in AI's strategic positioning at the policy level?
Song sons The mention of “Artificial Intelligence Plus” during two sessions, followed by the introduction of a special action plan during the 14th five-year plan and positioning as the core of the new productivity, means that China's AI industry is moving from the technological layout stage to the early stages of the industrial explosion. In my view, this change means that AI development is no longer the responsibility of the research institute. It has become an important driver of the nation's economic and social development. This provides strong policy support and resource assurance for the application of AI technology across a variety of industries.
[Anchor]MR. Wang, how do you see changes in AI's strategic positioning at the policy level?
Wang: China's AI industry is actually moving from the technology layout stage to the early stages of an industrial explosion. This shift is reflected not only in policy statements, but also in several aspects such as technology maturity, industrial demand, and market penetration. The next five to ten years will be a critical period of strategic opportunity for the global AI competition. Only top-level policy support can we ensure that AI truly unlocks its transformational power.
In line with the ng ng national national development strategy, Hong Kong's new policy report also highlights AI, focusing on “AI + Governance.” In fact, the mainland is ahead of the region, such as Smart City Construction. Wang, do you think Hong Kong can learn from the experiences from the mainland in this respect?
wang wang]Mainland has accumulated extensive experience in smart cities and digital governance structures, primarily through top planning, deep application scenarios, data integration capabilities, and extensive civic participation. These aspects can provide valuable references to Hong Kong.
Speaking of Anchor hong Hong Kong's new policy report, I would like to ask Legislative Council member NG Kit-Chong. Mr. NG, what aspects of AI governance applications on the mainland deserve Hong Kong's reference in promoting “AI + governance”?
ng nigs One important aspect is the standard. In addition to technical enthusiasm, the mainland has established standards for AI governance applications relatively early. AI is not 100% accurate and can make mistakes, making civil servants more confident and safer by using AI. Hong Kong can also refer to this by introducing internal guidelines as soon as possible.
Anchor also shows that the adoption rate of AI in Hong Kong's financial industry is relatively high. As for “AI + Finance”, how do you think Hong Kong can make a breakthrough?
First, we believe that Hong Kong can establish itself as a digital asset hub for the Asia-Pacific region. Integrating blockchain applications with AI is important. Hong Kong should be more aggressive in the development of Defi (distributed finance) using AI to use AI and smart contract reviews to reduce the associated risks and thereby increase the reliability and stability of the overall digital asset trading environment. This is one area Hong Kong can do more.
Second, Green Finance is another area where Hong Kong issued two popular green bonds. AI helps businesses or governments analyze data related to environmental, social and governance (ESG) factors, boosting investors' confidence and ensuring funds are effectively guided to relevant green projects. This is essential for Hong Kong to establish itself as an international green finance centre.
Finally, from a regulatory perspective, AI can help review the content of various documents. Hong Kong has a reputation for balancing regulations and development, and in the future, I believe that it will be able to use more AI to help regulatory agencies to conduct more accurate reviews, thereby addressing risks earlier. It also needs to demonstrate the greater use of RegTech (regulated technology) solutions to further strengthen and strengthen Hong Kong's position as a financial technology and financial centre.
ANCHOR Ultimately, whether it's a government or a major tech company, focusing on AI is not just about technology itself, but also about the content behind “AI+.” Song, your observation is, what area is most likely to achieve a breakthrough first? How do approaches differ from country to country?
Song sonvery From my observation, the region that is most likely to achieve a breakthrough first is AI + vertical industry. For example, the AI + Office application fundamentally changes the office software for the current form. AI + Healthcare accelerates drug development and helps diagnose diseases. AI+ manufacturing, among other things, leads to smarter production lines and supply chain management. In my opinion, groundbreaking directions can vary widely between countries and regions. For example, thanks to the accumulation of powerful technology, capital benefits, and an open innovation ecosystem, the United States could maintain its lead in large-scale models, AI chips, and basic research. The advantages of mainland China lie in vast amounts of data, large markets and complete industrial chains. Therefore, it could achieve breakthroughs in AI+ manufacturing, AI+ governance, and application on consumer internet. Hong Kong's strength is its position as an international financial centre and its connection with the world. So I think Hong Kong might find groundbreaking opportunities with AI+Finance and AI+Legal Services. Furthermore, Hong Kong can attract global AI talent and capital as a bridge for mainland AI technology to reach the world.
[Anchor]MR. NG, when it comes to stock markets, which specific sectors do you think are worth paying attention under the influence of AI?
For example, the consumer sector has already seen several AI applications implemented within the industry. In particular, e-commerce platforms observe features such as virtual make-up trials and virtual fitting rooms. These applications use AI technology to enhance consumer experience and motivate spending. In addition to the consumer sector, we are also seeing advances in the transport industry, including autonomous driving, which is currently being tested in a variety of regions and operates in some regions. We believe that further applications of AI in transportation will greatly expand. Other sectors include the healthcare and creative industries. For example, with the advent of generator AI, we have witnessed the use of AI in creative processes, such as painting, scripting, and filmmaking. These developments are already happening, indicating that these industries will adopt AI applications more quickly than others.
ANCHOR]Finally, do you think AI-related sectors are risky? Any advice for investors?
In fact, over the past year or two, whether it's in the US stock market, mainland China or Hong Kong, AI-related themes have been extremely popular, with stocks in this space seeing a noticeable increase. However, while some stocks show strong profits, we also find that their performance consistently exceeds market expectations and shows rapid growth. In particular, if a company produces strong results over multiple consecutive quarters rather than one or two impressive quarters, you can see that the stock is rising in tandem with earnings. Therefore, at this point, their ratings are not particularly high.
That being said, we must be careful. The AI sector is huge, with some AI-related stocks having low visibility in terms of profitability and may not even have any revenue. These strains are overvalued and have a potential bubble risk. Investors should be careful in these cases.
[Anchor]I understand, thank you very much. This episode is everything. Don't forget to follow us on YouTube or download the app. I'm Yun Fei Chang, thank you for watching, I'll see you next time.
Anchor: Laura Cheung | Editor: Kelly Yang, Laura Cheung, Rachel Liu | Translation: Kato IP | Proofreading: Chris Liu
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