Читать книгу The Digital War - Winston Ma - Страница 15

In May 2017, China hosted the historical match of the weiqi game (the “Go” game) between Ke Jie, the world's No.1 ranked player and world champion, and the AI (artificial intelligence)-enabled computer Go program named AlphaGo, designed by the DeepMind Lab of the US internet giant Google. The Wuzhen showdown was ripe with suspense and symbolism—human versus machine, intuition versus algorithm, tradition versus modern, and with the AI machine's straight 3–0 win over the world’s best human player, the unequivocal rise of the “digital economy”.

Almost overnight, the internet business community in China started discussing “the second half” of the mobile economy era, which in 2013–2016 drove a boom in e-commerce and mobile entertainment. In particular, the image of a top human player crying at his loss to AI has triggered a great sense of determination and urgency among Chinese businesses and companies: either adapt to the fast-evolving technology of AI, big data analysis, and computer chips to upgrade – or be destroyed. Since 2017, the new key words have been data and intelligence.

As covered by my 2016 book China's Mobile Economy (published by Wiley and called one of “the best 2016 business books for Chief Information Officers” by i-CIO.com), China has built the world's largest mobile internet economy, powered by the world's largest group of internet users, smart devices, mobile applications, and social networks. China's digitally connected new middle class has led to a seismic change in the Chinese consumer market. Even for multinational corporations that have done business in China for many decades, a comprehensive rethink of their strategies in China may be necessary.

Today, China's consumer-focused Internet is transforming into a more enterprise-oriented Internet, characterized by faster 5G mobile networks and more advanced digital technologies, including the Internet of Things, artificial intelligence (AI), blockchain, cloud computing, and data analytics (iABCD). Across just about every industry sector, Chinese companies have rushed to learn how 5G iABCD digital technologies can be integrated into their businesses to unlock value from nontraditional angles (see figure above). In short, China is leaping forward from “mobile first” to “intelligence first”.

For example, Tencent, one of the highest-valued Chinese internet companies, with its roots in gaming and online services, has made dramatic changes in response to the new trend. In 2018, for the first time in six years, Tencent announced a major restructuring to move from a consumer-only business toward one that caters to industries as well. The restructuring includes the creation of a new Cloud and Smart Industries Group, focusing on artificial intelligence, cloud service, Big Data and security; furthermore, Tencent has formed a new technology committee to better coordinate fundamental technology research across the company.

As a result, the next phase of development is referred to as the “second half game” of the mobile internet economy. The market expects far more profound and broader transformation of China's economy to come from “intelligent +” (data economy) than from earlier years of “internet +” (mobile economy). The years 2017 to 2018 were an even more important inflection point for China's digital transformation than the 2014–2015 inflection point (see the following figure). We are at the cusp of another major digital revolution in China.

This shift has profound implications for emerging markets that are looking at China as a reference case when they work on their own digital transformation. That means they need to look beyond mobile phone and digital wallet; instead, they must start positioning themselves for the next phase of AI and the digital economy – now. The billion-user messaging service of the WeChat app (Tencent), the US$30 billion and more total GMV (Gross Merchandise Value) in 24 hours on the Single's Day, and the “smile-to-pay” functions creating a cashless society are already snapshots from the past.

For example, yes, the November 11 (Singles' Day) festival remains the world's largest online shopping day, beating Black Friday and Cyber Monday combined. However, the highlight of late is no longer the GMV number but the advanced data technologies involved. Because the logistics issue of Singles' Day—the inventory, distribution and delivery of numerous orders close to US$40 billion in a short span of time—is such a challenge, Alibaba's logistics affiliate, Cainiao, has used AI techniques and GIS (Geographic Information System) to determine the fastest and most cost-effective delivery routes in a variety of complex road networks, including both rural villages and crowded urban areas.

As such, China's leaping forward may also give the rest of the world (emerging markets) a sense of urgency. But it may also be a leapfrogging opportunity for them, if those countries embrace the new technology revolution just as keenly. From “mobile” to “digital”, what's truly extraordinary is the decisive commitment from the Chinese government. It plans to become possibly the world’s first AI superpower through its ambitious move to embrace the AI and Fourth Industrial Revolutions.

Furthermore, in late 2019 President Xi urged that China should accelerate the development of blockchain to “seize the opportunity”, in remarks that marked the first major world leader to issue such a strong endorsement of the widely hyped—but still unproven—technology. During the 2020 coronavirus pandemic, China launched the “New Infrastructure” initiative in May, which acts as a stimulus to help stabilize the economy against COVID-19 disruptions, as well as a foundation for China to stay competitive and succeed in the age of Industry 4.0.

Meanwhile, the rise of China's tech power has also disrupted the global competition landscape, challenging the long-held dominance of America’s Silicon Valley. In fact, the years of 2019–2020 may be remembered as an important inflection point for the global digital economy, from collaborative co-existence to head-on tension. It is critical for the United States and China to reach a new equilibrium to collectively lead innovation in the age of AI because at the core of the digital economy is the free flow of trade, capital, intellectual, and data. Global dialogue and cooperation are ever more important for a shared digital future of the world.

The book is organized in three parts, as follows.