1. The Era of AI:
The Rise of China &
The Future of Work
Dr. Kai-Fu Lee
Chairman & CEO, Sinovation Ventures
www.aisuperowers.com

2. Deep Learning
人工智能正在改变世界
“Say something about AI”
It’s a great thing to build a better world with Artificial Intelligence
人工智能正在改变世界
Deep Learning

3. 2015
2011
2004
1998
Wave 4: Autonomous AI
Wave 3: Perception AI (digitized physical world)
Wave 2: Business AI
Wave 1: Internet AI
Four waves of Artificial Intelligence Applications

4. Massive data Accurate,
objective tagging
Single
domain
Computation
power
AI Experts
Five Premises of AI
1 2 3 4 5

5. US Leads in AI Science & Top Scientists
Turing Award Recipients in AI Deep Learning Inventors
Yann LeCun Yoshua Bengio
Geoff Hinton

6. Source: AMiner 2017 AI and Autonomous Driving Research
World’s Leading 1000 AI Experts by Country
（H-Index≥60）
US
68%
China
6%
UK
5%
Canada
3%
Isreal
2%
Italy
1%
Germany
2%
Australia
2%
Holland
2%
Swissland
1%
others
8%
China US
US leads China by far in top-1000 researchers & patents

7. So how can China have a chance?
Only few AI
breakthroughs
+ they’re easy
to apply
AI entering era
of imple-
mentation
AI platforms +
openness
further lowers
entry barrier
1 2 3

8. Observation 1: Only few AI breakthroughs:
Deep learning is the biggest breakthrough that is now easy-to-apply
1956 2010 2018
Perceptron Expert
System
Machine
Learning
Deep
Learning
ResNet,
Reinforcement
Learning,
Transfer
Learning,
GAN, …

9. Wide-spread
Application
Early
Adopter
Research Driven Application Driven
Expert is King Data is King
Advantage US Advantage China
Observation 2: AI is entering the Era of Implementation

10. Observation 3: AI platforms + openness lower AI entry barrier

11. Massive data Accurate,
objective tagging
Single
domain
Computation
power zSuper
AI Experts
For most applications, super AI experts not needed
1 2 3 4 5
Young
AI Engineers

12. Deep Learning: Autonomous Driving (Student Project)

13. How China leapfrogs in AI implementation
Only few AI
breakthroughs
+ they’re well
understood
AI entering era
of imple-
mentation
AI platforms +
openness
further lowers
entry barrier
Massive
Young
Chinese
AI
engineers
China has
become
innovative
Chinese
founders
are fast &
tenacious
China has
more AI
funding &
unicorns
China
has
more
data
Chinese
techno-
utilitarian
policies
1 2 3
4 51 2 3 6

14. Reason 1: Massive number of young Chinese AI engineers
Chinese contributions to AI journals and conferences
Articles
References

15. Copied from
U.S.
Inspired by
U.S., then
leapfrogged
Chinese
innovations
Reason 2: Chinese product innovation has caught up with US
Entering the era of:
Copy-from-China
…

16. Parallel Universe

17. Reason 3: Tough market begets tough entrepreneurs
Gladiator-like
Entrepreneurs moving at
lightening speed
Work ethic driven by
hunger for success
Strong fund raising capability
+ impregnable bus. model
Fast iterations towards business goals, while adding data = the key to AI implementation
996

18. Reason 4: China's AI capital leads the world
2017 world-wide AI investments
48%
38%
13%
Source: CB Insights 2017 Global Artificial
Intelligence Investment
China
U.S.
Others
China-US Top Voice Recognition
Company Valuation (in USD billions)
iFlyTek
Nuance
US$12B
US$7B

19. 计算机视觉
首家独角兽
Valued at $15Bn
Multiple~ 13x
World's most profitable
mining machine + AI
chip company
Valued at $1Bn
Multiple~ 12x
China's first AI
unicorn in Fin-Tech
Valued at $2.2Bn
Multiple~ 72x
World’s first AI unicorn
in computer vision
Valued at $1Bn
Multiple~ 22x
China's first AI unicorn
in autonomous driving
Valued at $1.5Bn
Multiple~ 8x
China's unicorn in
consumer AI chip
Sinovation Ventures’ s AI unicorns, total valuation $21B

20. Reason 5: Massive data is critical for AI product success
Algorithms are important
Data is even more critical
More data
Better
AI-trained
product
More
users
More
revenue
More
scientists/
machines
ModelPrecision
Size of Data
Big Market = Big Data = Best AI

21. In the age of AI, China is the Saudi Arabia in data
0
3
6
9
12
中国 美国 印度 巴西 俄罗斯 日本 墨西哥 印尼 土耳其 泰国 韩国
U.S. Brazil Russia Japan Mexico Indonesia Turkey Thailand KoreaIndia
0
5
10
15
20
25
30
35
中国 美国
0
3
6
9
12
15
2015 2016 2017E 2018E 2019E
300X
50X
0
200
400
600
800
1000
1200
1400
1600
1800
2000
中国 美国
10X
Mobile Internet users by country
(100 million)
Mobile Internet, China vs. U.S.
(USD trillion)
Food Delivery, China vs. U.S.
(10,000/day)
Shared bike rides, China vs. U.S.
(million/day)
3X
China
China ChinaU.S. U.S.

22. US $18.8 trillion2017 China Mobile Payment
2017 US $12.9 trillionChina GDP
Mobile payment everywhere

23. Reason 6: Techno-utilitarian Chinese policies
Setting the tone: Chinese State Council
AI Development Plan, July 2017
• By 2020: Lead AI technology & applications
• By 2030: Become global AI innovation hub
Infrastructure investments:
Xiong’an: New city with autonomous driving
• Two layers: one for automobiles, one for pedestrians
Zhejiang: New highway with sensors to improve safety

24. China 5
China 8
China 3
China 6
US 5
US 2
US 7
US 4
AIImplementation:China’sgrowingrapidlyandcannotbestopped
2018 2023
Internet AI
Business AI
Perception AI
Automation AI
China 1
China 1
US 10
US 9
US 10
US 9
2013
China 1
China 6
China 1
China 5
US 9
US 4
US 9
US 5

25. The Four Forces Accelerating AI
Sino-US dual engine
drive
AI platform emerging; many apps comingAI VC & funds growing rapidly
7 giants with own virtuous cycle1 2
3 4

26. $ 15.7 Trillion
By 2030
PWC predicts the size of the
world AI market (2017 China +
India GDP = $15.3 trillion)
Today’s AI + extrapolations will create unprecedented wealth

27. AI will also cause unprecedented challenges
Bias from Data
Job Displacement
SecurityPrivacy
Giant Dominance Wealth Inequality

28. AI Displaces Jobs Much More Than It Creates
Tele-sales
Dishwasher
Customer Support
Truck driver
Courier
Security Guards
Radiologist
Reporter
Research Analyst
CEO
M&A Expert
Economist
Repetitive Routine Optimizing Complex Creative
Columnist
Scientist
Artist
5years
SAFE SAFE
AI AI AI
Optimization Creativity or Strategy
10years
15years

29. zWhite collar Blue collar
The Displacement is Happening … Starting NOW!!

30. CEO
M&A Expert
Economist
Complex Creative
Columnist
Scientist
Artist
SAFE SAFE
Optimization Creativity or Strategy
Wave of Unemployed All Becoming “Creative”?

31. The Two Weaknesses of AI: No Creativity & No Love!
AI is just a tool, and cannot create AI has no self-awareness or love

32. HUMAN
+AI
AI
Human
Creativity
AI
Tool
Tele-sales
Dishwasher
Customer Support
Courier
Security Guards
Truck driver
Reporter
Research Analyst
Radiologist CEO
M&A Expert
Economist
Repetitive Routine Optimizing Complex Creative
Columnist
Scientist
Artist
Elderly Caretaker
Wedding Planner
Hotline volunteer
Teacher
Beauty Consultant
Concierge
Tour Guide
Social Worker
Remote Tutor
Home-school teacher
Elderly Companion
PR/Marketing DirectorAI
Analysis
Human
Warmth

33. AI: Era of Human Enlightenment
1. Be thankful of the AI Era:
• Liberate us from routine work
• Push us into thinking what makes us human
2. Be responsible for humanity:
• We have free will,
• and must choose to write our ending to the AI story

34. Conclusion: 21st Century Will be Remembered by
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The arrival of AI
Driven by 2 AI superpowers