During an informal media scrum outside the main hall of the two sessions, my first ever, one moment stayed with me.

As New Hope Group Chairman Liu Yonghao, a member of the 14th National Committee of the Chinese People's Political Consultative Conference, walked past, reporters suddenly surged forward.

A low hum filled the air — microphones, shutters, overlapping questions. I started near the front. Within seconds, I was pushed outward, swallowed by the crowd.

But what cut through the noise was a single, repeated question: What will artificial intelligence do to traditional industries?

That was when it clicked. Though I had known that AI would be a major theme this year, I didn't realize it would dominate the entire agenda.

This year, AI was one of the most common questions from reporters. Lawmakers and political advisers — regardless of sector — also spoke about AI.

Out of that intensity, a clear policy signal emerged.

Among the raft of economic measures unveiled at this year's two sessions, one concept stands out: the smart economy. For policymakers, it marks a shift — from developing AI to deploying it as a new engine of economic growth.

According to the 2026 Government Work Report, China will "deepen and expand the AI Plus Initiative" and, for the first time, "create new forms of smart economy".

The report also called for faster deployment of intelligent terminals and AI agents, alongside large-scale commercial use across key sectors to foster new forms and models of AI-native businesses.

Chen Changsheng, deputy director of the State Council Research Office and a member of the report drafting team, said "the goal of building a new form of smart economy is to seize the opportunity of AI development and expand the breadth and depth of its empowerment across industries."

"By doing so, we aim to open up new space for economic growth and cultivate new business models, and gear up new drivers of growth."

Industry leaders echo the sentiment that AI's true value lies in its real-world integration. Zhou Yunjie, chairman and CEO of Haier Group and a deputy to the 14th National People's Congress, said the next phase of AI depends heavily on large-scale industrial deployment.

"AI is moving from technology research toward practical application," Zhou said. "New technologies such as embodied intelligence and AI agents should be accelerated in real-world scenarios so that they can truly empower factories, cities and households."

China's ecosystem is already in place. The country boasts more than 6,000 AI companies, alongside rapid advances in frontier areas such as quantum technology and brain-computer interfaces.

Signs of that shift are emerging across industries. In biomedicine, for instance, AI is changing how drugs are developed.

Sun Piaoyang, chairman of Jiangsu Hengrui Pharmaceuticals and an NPC deputy, said the company is actively integrating AI into its drug research and development processes. By combining high-quality molecular datasets, advanced algorithms, and experimental validation, Hengrui has made significant progress in key areas such as target discovery, molecular design, and candidate optimization.

As an early adopter of AI in pharmaceutical R&D, Hengrui is doubling down on data-driven models to support drug innovation.

"We will further optimize AI systems to provide automated and intelligent support across every stage of drug research," Sun said, adding that this will help accelerate the development of innovative medicines.

Perhaps the most striking takeaway this year was AI push into traditional industries.

Liu from China's agricultural conglomerate said traditional sectors should not be seen as sunset industries.

"By embracing AI and digital technologies, traditional industries can generate new quality productive forces and unlock higher value," he said.

For many companies, the challenge is no longer whether to adopt AI — but how fast they can act before being left behind, he added.

Here, China's vast domestic market may prove decisive.

Yi Xin, a researcher at the Institute of Macroeconomic Research under the National Development and Reform Commission, said the country's super-large market provides abundant real-world scenarios for new technologies.

"The transformation of growth drivers depends on policy guidance, market demand and technological innovation working together," Yi said.

"The combination of technological breakthroughs, market support and policy direction creates a unique advantage for China's economic transformation."

Looking back, that pivotal moment outside the main hall now feels different.

The question was never just about AI. It was about growth.

What was once a technology story is now an economic one. And China's bet is that the smart economy is exactly the spark needed to power its next phase.