Industrial manufacturing China’s manufacturing sector is undergoing a profound transformation propelled by the integration of advanced AI technologies such as LLM, machine learning, computer vision and digital twins. This convergence is not only enhancing operational efficiencies but also redefining strategic priorities and competitive dynamics within the industry. AI applications like production optimization, predictive maintenance, intelligent quality control and AI- assisted design are revolutionizing traditional manufacturing processes by enabling real-time data collection, advanced analytics and automated decision-making. AI-driven technologies enable flexible, demand- driven manufacturing systems that replace rigid production lines, allowing manufacturers to swiftly adapt to changing consumer preferences and market trends. This shift not only empowers companies to meet the growing demand for personalized products but also creates new service- oriented business models. Selected scenarios and solutions in industrial manufacturing TABLE 1 Application Solutions in China Production optimization –AI-equipped robots are increasingly used in factory assembly, reducing human error and enhancing safety. Mobile and collaborative AI-vision robots are projected to grow over 20% annually by 2027.33 –AI and 5G-driven industrial internet support mass customization and flexible manufacturing via the connection of a vast array of industrial equipment. Quality management –The quality inspection market for industrial AI is projected to have a CAGR of 33% from 2022 to 2026.34 –AI and 3D visual inspection technology (including robots) have made significant breakthroughs in their ability to analyse complex structural products.35 –Perform root-cause analysis of defects and resolve issues, thereby establishing a closed-loop quality management system. COSMOPlat is an industrial internet platform established by Haier Group, specializing in industrial internet solutions powered by its “Tian Zhi” AI platform. The platform facilitates comprehensive interconnection among devices, systems and processes, while also focusing on specific industries and sectors. Chuangzhi Factory, for instance, was recognized as the first lighthouse in China’s printed circuit board assembly industry. By integrating AI and digital technologies, COSMOPlat also successfully established a dynamic optimization network that connects six factories and over 500 ecological partners, while also achieving a 50% improvement in order-to-delivery.36USE CASE 1 Haier COSMOPlat – AI-driven innovation hub for industrial transformation Blueprint to Action: China’s Path to AI-Powered Industry Transformation 17

Blueprint to Action Chinas Path to AI-Powered Industry Transformation 2025