Core Insights - The integration of AI with the low-altitude economy is creating new production factors and economic forms, positioning China to carve out a unique industrial development path due to its latecomer advantage and intelligent approach [1][2][3] Low-altitude Economy Overview - The low-altitude economy refers to activities involving manned and unmanned aerial vehicles operating below 1,000 meters (up to 3,000 meters), which can significantly reduce construction and operational costs compared to ground transportation [2][3] - The global low-altitude economy is projected to reach approximately $1.5 trillion by 2040, while China's Civil Aviation Administration aims for a target of 3.5 trillion yuan by 2035 [3] AI Development in Low-altitude Economy - AI is evolving from rule-based systems to deep learning and large models, with a dual-track development of general and vertical large models [3] - The focus for Chinese enterprises should be on developing vertical large models tailored to specific business scenarios for effective AI application [3] Industry Structure and Challenges - The low-altitude economy consists of four interdependent sectors: aircraft manufacturing, digital infrastructure, airspace management, and operational services, which together form a complete industrial ecosystem [4][5] - Current challenges include a lack of unified operational rules and safety standards, leading to a situation where many manufacturers are hesitant to operate their aircraft despite having the technology [5][7] Future Development Phases - The evolution of the low-altitude economy can be divided into three phases: - Short-term (1-3 years): Empowering scenarios such as agricultural pest control and power line inspections, with significant cost advantages [5][6] - Mid-term (3-5 years): Scaling logistics scenarios, including urban delivery and cross-border transport, with successful pilot projects already underway [6] - Long-term (8-10 years): Revolutionizing manned transport, starting with tourism experiences and gradually expanding to commuting, ultimately aiming for flying cars [6] Investment Considerations - Three validation principles for investments in the low-altitude economy include the authenticity of demand, technical feasibility, and financial sustainability [6] - Lessons from the bankruptcy of German eVTOL company Volocopter highlight the risks of overextending and the importance of a stable funding chain [7] Industry Collaboration and Future Outlook - The future industrial ecosystem will require deep integration of AI, low-altitude vehicles, robotics, and traditional industries, emphasizing the need for a balanced approach to avoid blind investments [8]