AI speech recognition algorithm companies in China are crossing into the development of AI chips to solidify their foothold in the market.
Rapid development of the Chinese smart speech market in recent years has been driven by state policy in China. Consumer electronics have also played a critical role. The market has also seen the entrance of many new AI speech algorithm entrepreneurs.
The future of AI development looks promising. To stay in the market, startups must strengthen their corporate structure if they hope to stay in the game.
The Chinese smart speech market is in a period of rapid growth, reaching CNY14.44 billion (US$2.2 billion) in 2019, and is expected to reach CNY36.73 billion in 2022 at a CAGR of 36.5%.
Looking at the applications for smart speech recognition in China, consumer electronics is the largest market due to the support of a larger user base. Education has become the fastest-growing application, with medical, government, and financial applications also gaining traction.
Chinese AI speech algorithm companies possess the core technology for speech and use third-party AI chips to run their algorithms, which increases the possibility of low compatibility and performance.
In light of this, AI speech algorithm companies have turned to working with chip makers or developing their own chips specifically for AI speeches recognition.
Digitimes Research has observed that most new AI speeches recognition algorithm startups in China have risen by riding the AI wave. These companies often face financial losses in the early stages of their operations and experience many challenges during their development, such as sources of working capital, AI application penetration rate, R&D resources and data acquisition.
Outside of China, speech recognition companies have also noted the development potential for AI speech recognition and making every effort to develop edge AI speech recognition chips. This further explains why Chinese AI recognition algorithm companies are pushing chip R&D so they can maintain their competitive edge in the market.
Source DigiTimes Asia