As of now, Shanghai has established a leading position in brain-like research, computer vision technology, core chips, algorithm platforms and intelligent robots. It is expected that by 2025, Shanghai's AI industry above the designated scale will reach 400 billion yuan ($55.11 billion) or an average annual growth rate of over 12 percent.

Industry Advantages

1. Distinct Industry Clustering

Shanghai's AI industry scale reached 305.7 billion yuan in 2021, and many innovation-oriented enterprises in intelligent computing, general AI, extended reality (XR), quantum technology and next-generation communications have settled in Shanghai.

As China's first AI Innovation and Application Demonstration Zone, Pudong New Area has promoted the construction of featured parks such as Zhangjiang AIsland, AI Robot Valley, the online economy park, Pudong Software Park and Yuqiao Science Park.

Zhangjiang AIsland (Phase I), a specialized park with one of the largest concentrations of AI enterprises in China, has attracted over 100 domestic and international AI enterprises including IBM, Microsoft, Infineon Technologies and CloudWalk.

2. Innovative Supporting Policies

Issuing China's first provincial-level regulation for AI industry development;

Compiling China's first local Five-Year Plan for AI;

Establishing China's first local standard system for AI;

Implementing China's first algorithm innovation action plan;

Continuously updating supportive policies for ICVs.

3. Multiple Application Scenarios

Over the past five years, Shanghai has issued:

30 major AI application scenarios which focus on economy, life and governance, giving birth to a batch of replicable and scalable solutions;

11 digital life pilot scenarios in healthcare, elderly care and other sectors, as well as a handbook and AI industry map for 100 application scenarios.

4. Coordinated Industry Chain

Data: Shanghai established the Shanghai Data Exchange to ensure trading data compliance;

Computing capacity: One of Asia's largest AI data centers, SenseTime AI Data Center (AIDC), allows base model training with hundreds of billions of parameters;

Algorithm: The Baidu PaddlePaddle AI Industry Empowerment Center settled in Zhangjiang, Shanghai, enabling downstream enterprises to develop industry-specific algorithms rapidly.

Source: Shanghai Foreign Investment Guide 2023