China's AI revolution: How mid-sized businesses are scaling impact

AI has been a game-changer in levelling the playing field between large companies and small and medium-sized businesses (SMBs). However, while the pace of innovation has been faster than before, AI's potential will only be met with some investment and thought. SMBs still need to invest in building strong data infrastructure and develop the in-house expertise to use AI effectively.

China serves as a prime example of a solid approach to supporting AI adoption. Their policy measures include subsidizing data centre costs for AI startups, fostering an environment where smaller players can compete with giants.

Many mid-sized companies, part of the World Economic Forum’s New Champions community – a network of over 100 exclusive members from over 44 countries who share insights and lessons – strategically use AI to unlock growth potential. These businesses are highly mission-driven, thus balancing profits with purpose. Here, three business leaders speak on how they leverage AI to scale impact with maximum efficiency.

Derek Li Haoyang, Founder & Chief Education Technology Scientist, Squirrel Ai Learning

“Since its inception, Squirrel Ai Learning has significantly enhanced educational outcomes and bridged the education equity gap through its AI adaptive learning technology. The platform customizes learning paths based on each student’s strengths, weaknesses, and learning patterns, leading to notable academic improvements. In AI versus human competitions, Squirrel Ai delivered 7-9% higher learning gains. Its impact is especially profound in rural and underserved areas, where we provide access to top-tier educational tools, empowering students to reach their potential.

Collaboration with local schools and authorities has facilitated the integration of our AI technology, enhancing learning experiences for students who might otherwise be left behind. Continuous research and development efforts, in partnership with top universities and research institutions, ensure our platform remains at the forefront of educational technology.

Practical applications in China demonstrate our impact. At Mushan Primary School, students improved their scores by 20-50 points on average, with the fifth-grade math final exams rising from 6th to 2nd in one semester in district rankings. Chongde School’s collaboration with Hainan Normal University showed a 50% improvement in math scores for half of the students, with a 47% decrease in low-scoring students. Wenyuan High School saw an average score increase of 16.6 points in the experimental class, with parts of the curriculum using Squirrel Ai showing a 31.19-point improvement.

Squirrel Ai has secured numerous patents and international recognition for its research, with over 60 papers selected for top AI and education conferences. Our innovations continue to enhance individual student outcomes and contribute to a more equitable global education system.”

Xu Wei, Vice President, Chief Strategy Officer and Chief Brand Officer, Dalian Bingshan Group, People’s Republic of China

“Cooling and heating accompany human society’s daily production and life. As a company focusing on the refrigeration and heating business, Bingshan Group follows the wave of AI, actively planning and promoting the application of AI technology in the refrigeration and heating industry and creating a smarter, greener and better life.

A good day may start with a cup of milk tea in a convenience store. To make the convenience store provide green and low-carbon emission services, Bingshan applies the self-learning frequency conversion controller to the relevant refrigeration and heating products to achieve accurate control, intelligent defrosting and defog, etc.

Through the energy-saving and intelligent operation and maintenance model with deep learning capability, the function of energy-saving, failure prediction, equipment health management, etc., are realized, and the energy consumption of the convenience store is reduced by 10-20%.

To ensure the quality of the manufacturing process, we use AI inspection technology on the production line, such as computer visual inspection, to avoid the impact of the working environment on workers and improve product quality, saving manpower and increasing efficiency.

We are applying large model technology to build Bingshan's cooling and heating knowledge map in order to develop new products and services that better meet customer needs.

We utilize the accumulated knowledge and experience on refrigeration, energy saving, control, equipment failure, product design and others, as well as analyse the accumulated industry data to build a knowledge map that can provide intelligent support on product design, manufacturing, operation and maintenance.

Meanwhile, we are also actively exploring the intelligent application of parametric design, intelligent security management, demand forecasting, intelligent robots, etc., in various industrial scenarios.

Under the wave of AI, we will fully leverage the advantages of accumulated professional big data and application experience to promote the deep integration of AI and refrigeration and heating applications and strive to provide more intelligent and green refrigeration and heating products and services.”

Jin Xing, Chairman and CEO, So-Young, People’s Republic of China

“So-Young has effectively explored the application of large AI models in e-commerce customer service, which have substantially reduced costs and increased efficiency. Our AI customer service systems, capable of handling thousands of inquiries, exemplify how automation can alleviate burdens on human resources, allowing for a focus on handling more complex needs and improving overall service quality.

Currently, the service level of intelligent customer service is approaching the average level of manual service. The institutions’ AI customer service has handled more than 65,000 user inquiries until now, saving institutions an average of CNY 60,000 (Chinese yuan) in costs per store annually.

Moreover, integrating AI into So-Young’s e-commerce platforms personalizes the consumer experience. Customers can easily navigate and access tailored medical ecommerce, enhancing customer satisfaction and operational efficiency.”

AI is changing the game for mid-sized businesses in China, giving them a fighting chance against giants. While there are hurdles to jump, success stories show AI's power to boost growth. As AI gets easier to use, expect even more innovation from these players, shaking things up in the business world.

We’re always interested in exploring ways to collaborate with the community. To learn more about our initiatives and see if there might be a good fit, feel free to visit our website and reach out to us directly.