AI Revolution: Transforming Manufacturing

The emergence of DeepSeek at the beginning of 2025 has been seen as a beacon of Chinese innovation, shining brightly on the global stage. This development, alongside others in the AI and robotics sectors, highlights a new era of technological advancement that is rapidly reshaping the manufacturing landscape.

Recently, a panel discussion on the theme of “Industrial Innovation Moving Towards ‘New’” took place on CCTV’s “Dialogue” program, featuring insights from prominent figures in the business world. The episode, which aired on May 10th, explored the transformative power of innovation in various industries.

The past year has witnessed increased support for innovation across different regions, leading to a surge of technological achievements from private enterprises. From generative AI to humanoid robots and advancements in civil aviation and quantum information, the private sector has demonstrated remarkable innovation, growth potential, and market competitiveness. The impressive performances of companies like DeepSeek and Unitree Robotics not only underscore China’s growing technological prowess but also instill greater confidence in the market.

The Shifting Landscape of Innovation

During the recording, a representative from the business sector noted a significant shift in the nature of innovation compared to the past. We have entered an era of technological revolution, with new technologies constantly emerging and intersecting across various fields. It is becoming increasingly rare for a single technology to spawn an entirely new industry through its spillover effects. Instead, innovation is now driven by the convergence and integration of multiple disciplines. This convergence is not just about combining different technologies but also about integrating different areas of expertise and knowledge. It necessitates a multi-disciplinary approach where experts from various backgrounds collaborate to solve complex problems and create innovative solutions.

The rise of AI has accelerated this trend, acting as a catalyst for convergence. AI algorithms can analyze vast amounts of data from different sources and identify patterns and insights that would be impossible for humans to detect. This capability allows companies to identify new opportunities for innovation and develop solutions that address previously unmet needs.

Moreover, the open-source nature of many AI tools and technologies has democratized access to these resources, enabling smaller companies and startups to participate in the innovation process. This has led to a proliferation of new ideas and solutions, further accelerating the pace of innovation.

The shift from single-technology breakthroughs to multi-disciplinary convergence also requires a change in the way companies approach innovation. Instead of focusing on developing isolated technologies, they need to adopt a more holistic approach that considers the entire ecosystem in which the technology will operate. This requires companies to collaborate with other organizations, including universities, research institutions, and even competitors, to share knowledge and resources.

Zhou Yunjie, Chairman and CEO of Haier Group, who participated in the discussion, believes that artificial intelligence will reshape every industry in the future. According to him, the key is to embrace collaboration with machines rather than confrontation. The level of cooperation with AI will even determine individual compensation, as those who can effectively utilize AI will inevitably outpace those who cannot. By encouraging all employees to embrace AI, companies can enhance their overall AI capabilities and unlock limitless possibilities. Haier’s approach highlights the importance of adapting to the changing landscape of work and preparing the workforce for the age of AI.

The ability to effectively collaborate with AI is becoming a critical skill for workers across all industries. This requires not only technical skills but also soft skills such as communication, problem-solving, and critical thinking. Companies need to invest in training and development programs to equip their employees with these skills and ensure that they can effectively utilize AI to enhance their productivity and performance.

Furthermore, embracing AI requires a cultural shift within organizations. Companies need to foster a culture of experimentation and learning, where employees are encouraged to explore new AI technologies and applications. This requires creating a safe environment where employees feel comfortable taking risks and experimenting with new ideas, even if they fail.

Character Portraits: Innovation Beyond Lone Efforts

In a lighthearted segment of the program, the host posed an intriguing question to a large language model: If the characters from the animated film “Ne Zha” were used to represent the industrial innovation strengths of China National Machinery Industry Corporation (Sinomach), China General Technology (Group) Holding Co., Ltd. (Genertec), and Haier Group, who would they be?

The AI quickly responded: Sinomach corresponds to Ao Bing, Genertec to Taiyi Zhenren, and Haier Group to Ne Zha.

Upon receiving the designation of Taiyi Zhenren, Genertec Chairman Yu Xubo explained that Genertec is currently undergoing a period of transformation, striving to improve its foundation, capabilities, and innovation in all aspects of industrial development. As a mentor figure, Taiyi Zhenren represents a direction of pursuit, and Genertec is steadily progressing towards this goal. Genertec’s focus on foundational capabilities highlights the importance of building a strong base for innovation. This includes investing in research and development, developing a skilled workforce, and establishing robust infrastructure.

Sinomach Chairman Zhang Xiaolun shared his interpretation of Ao Bing’s character. He noted that Ao Bing, as the son of the Dragon King of the East Sea, is akin to Sinomach’s status as the “eldest son of the Republic,” deeply rooted and upright. Moreover, Sinomach’s technological innovation spans a wide range of fields, making significant contributions and often playing a leading role. Sinomach’s diverse portfolio of technologies allows it to address a wide range of challenges and opportunities in the manufacturing sector.

Although Zhou Yunjie had not seen “Ne Zha,” he felt that Haier Group embodies the spirit of disruptive innovation exemplified by the character—“My fate is in my own hands.” However, he also believes that Haier is more like a hybrid of Ne Zha and Ao Bing, having evolved from a home appliance company into an Internet of Things ecosystem enterprise. Haier possesses both disruptive innovation and a relentless spirit of striving. Haier’s transformation from a traditional manufacturer to an IoT ecosystem enterprise showcases the potential for companies to reinvent themselves in the age of AI.

In today’s world, innovation remains a critical test for companies. As the primary drivers of innovation, businesses are simultaneously the question setters, the answer providers, and the evaluators. This multifaceted role requires companies to be proactive in identifying new opportunities, developing innovative solutions, and evaluating their effectiveness in the market.

Zhou Yunjie emphasizes that all three roles are crucial in different scenarios. Sometimes, the question setter role is paramount, requiring the identification of the right problem, which can be approached from two directions: user-driven and technology-driven. At other times, the answer provider role takes precedence, demanding the translation of ideas into tangible results. The evaluator role is equally indispensable, necessitating the acceptance of market validation. Furthermore, these three roles can shift depending on the circumstances. This dynamic interplay of roles highlights the need for companies to be agile and adaptable in their innovation efforts.

It is important to note that companies are not engaging in solitary endeavors in industrial innovation. Instead, they are collaborating with each other, each focusing on specific areas while working together to drive industrial development. Collaboration is essential for accelerating innovation and achieving breakthroughs that would be impossible for individual companies to achieve on their own.

Zhang Xiaolun points out that the nature of innovation has undergone a significant transformation. We are now witnessing a paradigm shift in innovation, with technology entering an era of rapid change and new technologies emerging continuously. This rapid pace of change requires companies to be constantly learning and adapting to new technologies and trends.

Yu Xubo cites Genertec as an example, explaining that as the largest industrial machine tool company in China and the only leading industrial machine tool enterprise among central enterprises, it has been actively collaborating with downstream industries in recent years. According to Zhang Xiaolun, in the past, companies would independently focus on manufacturing machines. However, with the support of the new national system and the Ministry of Industry and Information Technology (MIIT) and the State-owned Assets Supervision and Administration Commission (SASAC), numerous opportunities for collaboration between upstream and downstream partners have been created. These collaborations foster a more integrated and efficient manufacturing ecosystem.

The AI Arena: Survival Rules Behind the Scores

During the “Dialogue” program, Genertec, Sinomach, and Haier Group received scores from AI observers: Genertec scored 75, Sinomach scored 80, and Haier Group scored 90. These scores reflect the companies’ potential and strength in AI application and innovation. These scores, while subjective, provide a valuable benchmark for assessing the relative performance of these companies in the AI arena.

Although Genertec received a score of 75 in AI application, Chairman Yu Xubo believes that this score is a fair reflection of the company’s strong desire and initial achievements in the AI field. Genertec is fully embracing AI through the “Individual, Ten, Hundred, Thousand, Ten Thousand Project,” planning to build an AI basic support project at the group level and deploying AI technology in various aspects of research and development, manufacturing, and application. Genertec’s comprehensive approach to AI implementation demonstrates its commitment to leveraging the technology across all aspects of its operations.

Sinomach received a score of 80, and Chairman Zhang Xiaolun noted that the integration of manufacturing and AI is challenging, primarily due to the difficulty of data extraction and establishing a secure sharing mechanism. Sinomach is working hard to overcome these challenges and promote the application of AI in the field of industrial machine tools, enhancing the industry’s competitiveness. Data extraction and secure sharing are critical challenges that must be addressed to fully realize the potential of AI in manufacturing.

Zhang Xiaolun also mentioned that innovation is Sinomach’s top priority. “From our current perspective, the bottleneck lies in the construction of our pilot test platform, as it is a crucial link between the product’s journey from the laboratory to large-scale production,” Zhang Xiaolun said. Sinomach is actively promoting the application of AI technology, particularly in the construction of pilot test platforms, striving to bridge the gap between the laboratory and large-scale production. Pilot test platforms are essential for validating new technologies and ensuring that they can be successfully deployed in a real-world manufacturing environment.

In the AI observer’s scoring, Haier Group led with a high score of 90. Chairman Zhou Yunjie stated that this score reflects Haier’s leading position in AI application, but it also reminds the company to fully embrace AI, address the speed of technological innovation and transformation, and build ecological capabilities and rule adaptation capabilities. Haier plans to enhance its competitiveness through full, all-round, and all-process AI application. Haier’s emphasis on ecological capabilities and rule adaptation highlights the importance of building a sustainable and adaptable AI ecosystem.

Industrial innovation is a long and arduous journey. Zhou Yunjie hopes that through their technological innovation, the world will recognize Chinese brands, acknowledge Chinese brands, and respect Chinese brands. Haier is currently developing an industrial internet platform called “COSMOPlat,” hoping to leverage its experience and knowledge to empower more small and medium-sized enterprises to go global and become world-renowned brands. Haier’s commitment to empowering SMEs underscores the importance of fostering a collaborative and inclusive innovation ecosystem.

The Future Battlefield: AI Empowerment and Green Transformation

The rapid development of AI technology is bringing unprecedented opportunities and challenges to the manufacturing industry. The manufacturing industry is undergoing a profound transformation driven by the advancements in AI.

Zhou Yunjie emphasizes that companies need to fully embrace AI in product design, manufacturing, and user experience, enhancing user and operational experiences through personalized customization and high-precision production. Haier plans to promote the deep application of AI in manufacturing through the development of smart homes and industrial large models. Personalized customization and high-precision production are key benefits that AI can bring to the manufacturing industry.

Zhang Xiaolun showcased Sinomach’s technological breakthroughs in the field of superhard materials, which account for 95% of the world’s artificial diamond production and are widely used in aerospace, chips, and other fields. However, Zhang Xiaolun also acknowledged that the lack of basic research and “choke points” remain shortcomings in the company’s development. Companies need to address the challenges of technology transformation and market application through a “whoever can do it will take the lead” approach, uniting the entire industry to tackle the problems together. Addressing the “choke points” and strengthening basic research are crucial for ensuring long-term competitiveness and sustainability in the manufacturing industry.

Yu Xubo explained that Genertec has achieved remarkable results in the field of high-end equipment manufacturing. Its subsidiary, Dong软医疗, has launched a 0.235-second ultra-wide CT (computed tomography) machine, breaking the global CT machine rotation speed limit. This breakthrough demonstrates the potential for AI to drive innovation in high-end equipment manufacturing.

Through the establishment of an open innovation system and ten global R&D centers, Haier Group has achieved continuous innovation in the field of smart homes. Zhou Yunjie emphasized that companies need to adapt to the innovation rhythm of the AI era through rapid-response agile organizations and the cultivation of compound talents. At the same time, they need to pay attention to the impact of AI technology on employment, providing more entrepreneurial opportunities for employees through the construction of maker platforms. Cultivating compound talents and creating entrepreneurial opportunities are essential for mitigating the potential negative impacts of AI on employment.

Green transformation isalso an important direction for the future development of manufacturing. Zhou Yunjie pointed out that Haier Group is using artificial intelligence technology to improve the precision and efficiency of production and manufacturing while focusing on green environmental protection and promoting sustainable development. Haier’s goal is to achieve zero-inventory, high-precision personalized customization production through AI technology, meeting users’ diverse needs. Green transformation is becoming increasingly important as companies strive to reduce their environmental impact and promote sustainable development.

Zhang Xiaolun believes that the application of AI technology will have a profound impact on the manufacturing industry’s operating model, redefining every aspect from product design to after-sales service. This comprehensive impact of AI requires companies to rethink their entire business model and adapt to the changing landscape.

Yu Xubo stated that Genertec will fully empower all aspects of manufacturing through AI technology, comprehensively enhancing the company’s competitiveness from research and development to manufacturing and service. At the same time, Genertec is also actively deploying green manufacturing, promoting sustainable development. This holistic approach to AI empowerment and green manufacturing is essential for long-term success in the manufacturing industry.

In this AI-driven manufacturing breakthrough, companies are seeking new growth points and development directions through innovation and transformation. Whether it is Genertec’s comprehensive layout, Sinomach’s technological breakthroughs, or Haier Group’s open innovation, all are laying a solid foundation for future development. These diverse approaches to innovation demonstrate the multifaceted nature of the AI revolution in manufacturing.

As AI empowers manufacturing, green transformation has become an inevitable path for corporate development. As renowned business thinker and New Species Research Institute Dean Wu Bofan said, future innovation will be like a tropical rainforest, requiring companies to find their place in the ecosystem, evolve with AI, and embrace the challenges and opportunities of the future. This analogy highlights the importance of adaptability, collaboration, and resilience in the face of rapid technological change.