Introduction

The Ministry of Industry and Information Technology, the State Administration for Market Regulation, and the Ministry of Commerce in China have jointly released the series of national standards titled “Artificial Intelligence Terminal Intelligence Classification” (GB/Z 177—2026). This initiative establishes specific standards for products such as smartphones, computers, and televisions, creating a unified evaluation system for AI terminals. This will lead to orderly competition in the industry and help consumers make informed choices.

Current Market Challenges

Currently, AI technology is fully integrated into consumer electronics, yet the industry faces irrational competition. Various AI smartphones and computers overwhelm consumers, as manufacturers compete on chip performance, model parameters, and hardware configurations, focusing primarily on hardware specifications. The market is flooded with pseudo-intelligent products and exaggerated functionalities, leading to significant discrepancies between product experience and marketing claims. Issues such as product homogenization, inflated features, cost shifting, and disconnection from real consumer needs are prevalent. The trend of merely competing on parameters, while seemingly popular, actually results in low-level homogenization and deviates from the original innovation intent of user-centric and experience-first smart terminals.

The Core Mission of AI Terminals

The primary mission of AI terminals is to serve people. Analyzing several popular smart products reveals that their success is not due to parameter hype but rather their ability to address genuine consumer needs. For instance, smart speakers gained rapid popularity because they enable hands-free voice interaction suitable for everyday scenarios. Similarly, robotic vacuum cleaners became popular by effectively addressing household cleaning challenges, thus reducing burdens and increasing efficiency in family life. The common reason for the success of these products lies in their grounding in real-life scenarios rather than conceptual gimmicks. Products that merely appear intelligent but lack practical wisdom and real user experience struggle to retain user loyalty and will ultimately be overlooked by the market.

Importance of Standards in Industry Development

For industrial development, standards are essential. AI is a new technology, and AI terminals represent a new market segment. The healthy and orderly development of this new industry relies on a guiding standard system. The introduction of the first national-level intelligent capability classification standard for AI terminals in China breaks the single-parameter evaluation logic and establishes a hierarchical, scenario-based, and experience-oriented evaluation system. This shift will encourage the industry to move from “parameter stacking” to “experience emphasis,” guiding companies to escape internal competition and accelerate product and technology iterations. It will also clarify product functionality definitions, establish performance benchmarks, and facilitate consumer purchasing decisions. Globally, this will help companies overcome technical standard barriers when expanding overseas, enhancing China’s AI industry’s influence on the global stage.

Market Potential for AI Terminals

The AI terminal market holds significant growth potential. China boasts a large consumer base and a complete electronic industry chain, with production and ownership of smartphones, computers, and wearable devices ranking among the highest in the world. The strong demand for device upgrades lays a solid foundation for the widespread adoption of AI terminals. Additionally, AI application scenarios are continuously expanding, covering various areas such as home, office, travel, and health care, leading to new business models and experiences. Driven by policy guidance, technological iterations, and consumer upgrades, AI terminals are expected to unlock greater growth potential and become a new engine for consumption and high-quality development in the electronics industry.

Advancements in AI Terminal Capabilities

Consumers also demand higher levels of AI terminals. Unlike traditional smart terminals that passively execute commands, AI terminals, driven by large models, possess capabilities such as scene perception, intent understanding, multimodal interaction, and autonomous learning. They can act as personal intelligent assistants. Users no longer need to switch between various applications, allowing them to complete multiple tasks in one go, making usage simpler and more efficient. For example, AI smartphones can learn users’ habits, improving usability over time. Public data indicates that shipments of AI smartphones, PCs, and tablets have surpassed ten million, highlighting the vast market space and strong consumer demand for AI terminals.

Conclusion

Moving away from parameter-driven competition is essential for the quality upgrade of the AI terminal industry and serves as a vivid reflection of China’s manufacturing breakthroughs. As a major global producer and consumer of AI terminals, China must avoid falling into low-end competition by merely stacking hardware and parameters, which wastes R&D resources. The transition from hardware competition to value innovation and from scale expansion to quality leadership will enable AI terminals to create a new brand for Chinese manufacturing, ushering it into a new phase of high-end intelligent manufacturing.