AI Industry Competition Shifts from Model Building to Service Delivery

According to a September 2, 2026 report, industry experts indicate that the MIIT's AI Application Service Provider Cultivation Special Action marks a shift in China's AI industry from technology R&D to scaled industrial deployment, with competition moving from "competing on models" to "competing on delivery." Xiang Ligang, a well-known communications industry observer, noted that the competition focus is extending from model capability to industry understanding, system integration, and continuous operation. Whether a model can enter real business processes and generate stable value is becoming the new benchmark for AI enterprise capability. Companies including SenseTime, StartLux, and Deepcast have formed capability systems matching policy requirements, covering data resources, open APIs, security compliance, and scenario deployment. The shift signals maturation of China's AI industry from laboratory technology to practical business value.