Deep learning has enhanced the versatility of artificial intelligence (AI) algorithms. In the last decade, the AI industry has been spawned and developing rapidly. However, practice shows that the application of AI technology and algorithms in the industrial field faces huge challenges. Approaches need to be explored for enterprises to properly use AI and for the academia and industry to effectively collaborate to facilitate algorithm application. The study focuses on the sustainable development of China's AI industry, and presents several practical cases of AI application, through which we analyze the current status, challenges, and their root causes pertaining to industrial application of AI and propose corresponding suggestions. The complexity of AI application for enterprises involves multiple dimensions, including business requirements, data, algorithms, infrastructure, and supporting systems. The maturity of AI application depends on the degree of data preparation and the level of data governance. At the national level, a friendly ecology for AI application should be built to promote the coordinated development of the entire industry chain, and specific measures should be taken to support the research and development of AI technologies that focus on full-stack AI, AI basic platform and tool system, and AI root technology, thus to improve the independence of China's AI core technologies. Moreover, enterprises should be encouraged to actively participate in digital transformation and intelligent upgrading using AI technologies, thereby forming a strong coupling and a two-way cycle between research and application of AI technologies.