Think Tank

Artificial Intelligence+Reshaping the Competitive Advantage of Manufacturing Industry

2025-07-03   

Artificial intelligence is a strategic technology that leads a new round of technological revolution and industrial transformation, with a strong spillover effect of "leading geese". General Secretary Xi Jinping made important remarks on the development of artificial intelligence and manufacturing industry, emphasizing that "intelligent manufacturing should be the main direction to promote industrial technological transformation and optimization upgrading" and "to promote the deep integration of artificial intelligence technology innovation and industrial innovation". In recent years, there have been significant breakthroughs in artificial intelligence technology, and its empowering role as a typical general-purpose technology has been further enhanced. The central government has clearly proposed to carry out and continuously promote the "AI+" action. China's manufacturing industry is facing challenges such as rising domestic production factor costs, international trade wars, technology wars, etc., which further push up export costs and increase the risk of supply chain disruptions. Advancing the "Artificial Intelligence+" initiative can restructure manufacturing production factors, product architecture, production processes, and supply chains, achieving significant leaps in production efficiency, product performance, business models, value chain status, and maintaining and enhancing global competitiveness. Recognizing the current situation and trends of industrial development, manufacturing is an important pillar of the national economy. Currently, artificial intelligence and robotics technology are reshaping production logic at an unprecedented speed, driving the manufacturing industry to accelerate into the "smart manufacturing era". This is not only a necessary requirement for technological empowerment, but also the trend of the development of the manufacturing industry itself. Let's first look at the current situation of manufacturing development. Since the reform and opening up, China's manufacturing industry has formed a low-cost competitive advantage in the international market. In the initial stage, the low-cost advantage mainly comes from the abundant and low wage labor supply. By actively participating in the vertical division of labor in the global industrial chain, price advantages are formed in typical labor-intensive industries such as clothing and toys. With the improvement of economic development level, labor costs continue to rise. At the same time, the manufacturing industry continues to accumulate capital, innovate technology, expand production scale, refine industrial chain division of labor, and steadily enhance technological level. This promotes the extension of low-cost advantages to complete industrial supporting facilities, continuously improving production efficiency, and economies of scale brought about by the expansion of production scale. In recent years, due to the continuous increase in factors such as wage levels, land and real estate costs, low-cost and price competitiveness have weakened. The rise of anti globalization and the upgrading of the game between major powers not only further increase the export costs of the manufacturing industry, but also increase the security risks of the industrial chain and supply chain, and increase the pressure of industrial chain relocation. The manufacturing industry needs to reshape its competitive advantage through industrial restructuring, optimization of factor structure, and upgrading of product structure. Let's take a closer look at the empowerment of artificial intelligence in the manufacturing industry. Industrial robots are an early application of artificial intelligence in the manufacturing industry, mainly used in fields with high production continuity, heavy workload, danger, and high precision requirements, represented by the welding and spraying processes in the automotive industry and the precision machining processes in the electronic information industry. The use of industrial robots has significantly improved the production efficiency and product performance of industries such as automobiles and electronics, becoming an important source of competitiveness in the manufacturing industry. Since the 21st century, significant breakthroughs have been made in artificial intelligence technology. Deep learning technology has significantly enhanced the performance and scope of application of artificial intelligence. Digital intelligence technologies such as big data analysis and machine vision have been applied in industrial quality inspection, remote monitoring, equipment health management and other fields, promoting the development of industrial Internet and intelligent transformation of manufacturing industry. In recent years, breakthroughs in big language models have transformed artificial intelligence from perception to cognition, from analytical judgment to generative, from specialized to general, and opened the prelude to general artificial intelligence. Generative artificial intelligence can not only generate text, images, audio, and video, but also generate more specialized content such as design schemes and software code, with strong human-computer interaction capabilities. Artificial intelligence companies represented by DeepSeek have significantly improved model training efficiency, reduced training and operating costs, optimized performance, and accelerated the application process of large models through innovative model architecture and algorithm optimization. AI agents and embodied intelligence have become new directions for the development of artificial intelligence, further expanding the application scope of artificial intelligence. In the field of manufacturing, vertical large-scale models targeting specific industries have stronger professionalism and practicality, and embodied intelligence enhances the collaborative ability of robots, production equipment, and operators. Industrial intelligent agents achieve a complete intelligent closed loop of "knowledge+experience+reasoning", enabling intelligent manufacturing with self perception, self-learning, self decision-making, self execution, and adaptive capabilities to truly be realized. Grasp the development logic of deep integration. Currently, artificial intelligence technology is constantly breaking through and maturing, and its application in the manufacturing industry is expanding and deepening. The deep integration of the two is not only reflected in the manufacturing process, but also in various links from research and development design to product and after-sales service; Not only in factories and within enterprises, but also in the entire supply chain and business ecosystem where the enterprise is located, it has great potential to achieve intelligent upgrading and competitiveness enhancement of the entire manufacturing chain, field, and cycle. Enhance comprehensive cost competitiveness by improving production efficiency. Like general purpose technologies such as steam engines and electricity that have emerged in history, the empowering role of artificial intelligence is highlighted in the improvement of production efficiency. One is to improve efficiency through element substitution. The comprehensive cost of manufacturing industry not only depends on the wage level of labor, but also has a significant impact on the overall cost due to the high or low labor productivity. Artificial intelligence technology can replace labor and other production factors, reducing labor input while greatly improving labor productivity, thereby maintaining a comprehensive cost advantage. China has been the world's largest market for industrial robots for several consecutive years, and the efficiency improvement brought by the use of industrial robots has effectively reduced the impact of rising production factor prices on overall costs. Artificial intelligence technologies such as machine vision have shown significant advantages over human labor in terms of accuracy and speed in product quality inspection. Generative artificial intelligence is playing an increasingly important role in product development, marketing, and can also replace customer service personnel to provide 24/7 customer support services. The second is to improve efficiency by increasing the goodness rate. Artificial intelligence technology can monitor and predict the operation status and product quality of production equipment in real time. By predicting and preventive maintenance of production equipment failures in advance, it can avoid losses caused by production interruptions due to equipment failures. By dynamically optimizing production processes, it can improve product yield and ensure stable product quality. The third is to reduce costs through precise response. Artificial intelligence technology can help manufacturing companies accurately predict market demand changes based on historical sales, product usage, and market changes, develop more precise and reasonable scheduling and production, raw material procurement, and inventory management plans, reduce material and capital occupation, and lower overall costs. Enhance product market appeal by improving product performance and functionality. One is to understand user needs and develop products that are suitable for the market. By analyzing data such as product operation or user usage habits, user feedback information, etc., it is possible to better develop products that meet market demand. Generative artificial intelligence can quickly generate product configurations, appearance designs, and functional combinations required by users. With the support of robots, 3D printing, and intelligent manufacturing systems, customized products can also be developed and produced for users at a more competitive cost. The second is to provide intelligent products through deep integration. Artificial intelligence is showing a trend of highly integrating with final products, including investment and consumer goods. Intelligent products have performance that exceeds traditional products, and many also have excellent new features that traditional products do not have. The level of intelligence of a product not only affects its popularity, but also enhances its added value, offsetting the impact of rising costs. The third is to provide value-added services based on the product. Intelligent products can interact with users more efficiently, respond to user needs in a timely manner, and provide personalized value-added services such as online monitoring and professional advice. Manufacturing enterprises increase revenue through the sale and subscription of value-added services, while also improving user stickiness. In addition, artificial intelligence achieves raw material and energy savings by improving product design and optimizing production processes, making industrial production processes and products more green and low-carbon, in line with the new trend of green consumption. Enhance global supply chain control through data connectivity. The competitiveness of manufacturing enterprises not only depends on factors such as product performance, price, and brand, but also on the influence on suppliers and sales channels, which is an important source of competitiveness. Artificial intelligence technology can help manufacturing enterprises enhance their control over the global supply chain. One is to accurately grasp market and supply chain information. Based on smart products, smart factories, and smart supply chains, manufacturing enterprises have achieved online connections and data connectivity for production, logistics, markets, users, and other production, supply, and marketing links, enabling real-time monitoring of the dynamics of the entire production and circulation process and changes in market demand. This has changed the traditional manufacturing enterprises' lack of understanding of supplier and user situations. The second is to enhance the influence on users. With the help of manufacturing companies building their own e-commerce platforms or third-party e-commerce platforms, artificial intelligence technology can profile users, accurately push products, strengthen interaction between users, improve user experience, and increase purchase conversion rates. It should also be noted that the booming development of cross-border e-commerce platforms has changed the traditional situation of cross-border buyers controlling the global supply chain, enhanced China's voice in the global supply chain, and effectively promoted Chinese made products to enter the international market. Forming emerging industry competitiveness through integration with disruptive innovation. With the deepening of a new round of technological revolution and industrial transformation, disruptive innovation continues to emerge and transform into new products, models, and formats, forming emerging industries with great growth potential and fast growth rate. In the field of emerging industries, countries around the world are on the same starting line, becoming an important opportunity for latecomers to change the backwardness of traditional industries and achieve lane changing overtaking. Artificial intelligence is the main general-purpose technology in the current new round of technological revolution and industrial transformation, deeply integrated with various industries of the national economy. Therefore, emerging industries formed by the transformation of disruptive technology industries must have intelligent characteristics. For example, in the low altitude economy, intelligence is not only the development direction of low altitude aircraft, but also the support of artificial intelligence for low altitude infrastructure and air traffic management. The integration of artificial intelligence technology and disruptive innovation helps China cultivate new momentum and shape new advantages in a series of emerging manufacturing industries. Identifying the practical path to reshape advantages through "artificial intelligence+" to reshape the competitive advantage of the manufacturing industry requires not only looking at the development foundation and grasping unique advantages, but also recognizing shortcomings and finding the right direction for development. China's digital infrastructure is constantly improving, and artificial intelligence technology and industries are developing rapidly. Coupled with the rich application scenarios and massive data brought by the complete range of industries, complete industrial chains, and huge industrial scales, it provides conditions for the application of artificial intelligence in the manufacturing industry. However, there are still obstacles in terms of technology, infrastructure, funding, and talent in practical applications, which urgently need to be addressed with precision and resolved as soon as possible. Encourage innovation in key technologies. Increase investment in basic research and cutting-edge technological innovation in artificial intelligence, concentrate efforts on tackling core technologies such as high-end chips and basic software, support various enterprises to continue promoting model architecture innovation and algorithm optimization of big language models, encourage innovation and entrepreneurship in fields such as embodied intelligence, brain computer interfaces, industrial vertical big models, and industrial intelligent agents, and expand the application of artificial intelligence in manufacturing

Edit:Luo yu Responsible editor:Zhou shu

Source:ECONOMIC DAILY

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