China is well-positioned to take a global lead in industrial artificial intelligence (AI) applications, Siemens’ global executive vice president and China chairman Xiao Song said on Tuesday at CES 2026.

Speaking on the challenges and opportunities of AI in manufacturing, Xiao said industrial AI is “hard to crack” but can deliver significant productivity gains. “AI will not completely replace humans, but it can unlock greater human value,” he said.

Xiao highlighted China’s broad manufacturing base, deep industrial chains, and openness to new technologies, combined with supportive policies, as key factors enabling the country to advance industrial AI applications.

He also stressed the role of digital twins combined with AI in creating efficient closed-loop systems from design to operations. “The deep integration of digital twins and AI allows the virtual world to drive real-world production,” Xiao said, describing it as a critical foundation for industrial AI deployment.