China builds nearly 10,000 smart factories, digitized workshops nationwide, WIC reveals

China has established nearly 10,000 smart factories and digitalized workshops nationwide, according to the China Internet Development Report 2024. Released during the ongoing 2024 World Internet Conference (WIC) in east China's watertown of Wuzhen, the report highlights the country's integration of artificial intelligence (AI) and advanced digital technologies into manufacturing across industries.

Smart manufacturing and AI adoption

The report reveals that 421 of these workshops and facilities have been designated as national-level smart manufacturing demonstration factories, with over 90 percent leveraging technologies like AI and digital twins. A digital twin is a virtual model of a physical object. It spans the object's lifecycle and uses real-time data sent from sensors on the object to simulate the behavior and monitor operations. These advancements signal China's increasing focus on accelerating industrial digitization and enhancing productivity through technological innovation.

China is also making progress in AI innovation. By the end of 2023, the country held 378,000 valid AI invention patents, an annual growth of 40 percent – 1.4 times the global average growth rate, according to the report.

Global trends and challenges in digital era

The World Internet Development Report 2024, also released at the summit, provides a global perspective by analyzing internet trends across 52 countries and regions through key metrics, including digital innovation, infrastructure and cybersecurity.

While countries worldwide are upgrading digital infrastructure and adopting next-generation technologies, challenges remain. Cybersecurity threats, fragmented data governance frameworks and the need for cohesive international digital trade rules are pressing concerns.

One specific challenge lies in AI development. According to the 2023 AI Index Report by Stanford University, industrial entities produced 51 prominent machine learning models in 2023, compared to just 15 from academic institutions. Limited access to funding, data and computational tools in academia has driven a talent migration toward industry, further consolidating its dominance in AI innovation.

Another concern is the ethical misuse of AI. Data from the AI, Algorithmic and Automation Incidents and Controversies reveals a 26-fold surge in AI-related controversies and misuse cases since 2012, underscoring the urgency of addressing ethical issues in AI applications.

Since 2017, the annual release of the World Internet Development Report 2024 and the China Internet Development Report 2024 at the WIC has offered valuable insights into global and Chinese internet development trends.

This year's WIC, themed "Embracing a People-Centered and AI-for-Good Digital Future – Building a Community with a Shared Future in Cyberspace," aims to foster global cooperation in governance, innovation and security within the digital realm. The summit kicked off on Wednesday and concludes Friday.