TCL founder and chairman Li Dongsheng recently discussed the company's artificial intelligence strategy, emphasizing a pragmatic, dual-track approach that must deliver concrete business results.

Regarding the implementation of large AI models on the consumer side, Li noted that changes in end-product forms are currently incremental. He stated that no disruptive product has yet emerged to replace the mainstream product forms of today.

Li stressed that TCL consistently emphasizes the practical application of AI. The company is advancing AI applications primarily in two directions to achieve tangible operational outcomes. As a manufacturing enterprise, the development and application of AI technology must demonstrate clear, real-world benefits. This involves setting achievable goals, such as integrating AI technologies, particularly large language models, into the production and product systems of tech manufacturing. After over four years of exploration, TCL has already seen significant progress.

Li outlined the first direction as integrating AI into the manufacturing system. TCL was a pioneer in applying AI technology within its TCL CSOT semiconductor display business, developing its own vertical domain-specific large model, the Xingzhi Model. This model is built around industrial application scenarios, with computational power supported by partners. The benefits are evident in product development, quality control, process optimization, and other areas, leading to tangible improvements that ultimately enhance business performance and financial metrics.

Li elaborated that TCL has established the Xingzhi Model at TCL CSOT, the Fuxi Model at TCL Industrial Holdings for smart terminals, and the Shenlan Model at TCL Zhonghuan. In the semiconductor materials sector under Zhonghuan, a large model based on semiconductor material processes has also been developed. The ongoing construction and iterative upgrades of these models will effectively bolster the company's overall competitiveness. Li revealed that last year, AI contributed approximately 600 million yuan in benefits within the TCL CSOT display segment alone. Over the past few years, TCL has invested a cumulative total of around 5 billion yuan in AI, generating roughly 2.5 billion yuan in returns, with plans to continue deepening its applications.

The second strategic direction, according to Li, is developing AI-powered end-user products. He highlighted that TCL's RayNeo smart glasses currently hold the largest market share in China's AR and AI glasses market. While acknowledging the product is still in its early stages, Li pointed out that the industry widely views AR and AI glasses as a potential major future gateway for smart devices. He observed that a simple search for AI glasses companies yields numerous results, with significant social capital flowing into the sector and many new companies being established. This trend reflects market confidence in the industry's future growth potential, indicating it is poised to become a major market segment.

Li emphasized that as a manufacturing company, it is crucial to lead in the application of AI technology to maintain a competitive edge. He concluded by stressing that, overall, corporate development must keep pace with the AI wave to avoid being left behind.