Shanghai to enhance linkage between AI, manufacturing

Shanghai aims to accelerate the integration of artificial intelligence and manufacturing in the coming years, a move expected to boost new industrialization, strengthen new quality productive forces, and position China as a global leader in intelligent manufacturing, experts said.

An implementation plan to accelerate the development of "AI + Manufacturing" was announced on Tuesday by the Shanghai Municipal Commission of Economy and Informatization, along with the Shanghai Municipal Development and Reform Commission and Shanghai's municipal State-owned Assets Supervision and Administration Commission.

The plan calls for deeper integration of AI with the manufacturing sector, boosting new industrialization and fostering new quality productive forces.

The plan also outlines specific targets, including enabling 3,000 manufacturing enterprises to adopt smart applications, developing 10 industry benchmark models and 100 flagship intelligent products and promoting 100 demonstration application scenarios.

Xie Haiqin, deputy general manager of COSMOPlat, outlined three new prospects in the action plan.

"First is the opportunity to build new factories. For companies planning new facilities, the implementation plan promotes 'AI +Manufacturing' factories, allowing firms to integrate advanced technologies to create smarter, more efficient plants and achieve a leap in production models.

"Second is the potential for product intelligence upgrades and end-to-end empowerment. Companies integrating AI into daily operations can develop 'AI+' industrial software, products, and equipment to enhance product intelligence and functionality.

"Third is the chance for coordinated industrial ecosystem development. For our company, this means providing digital twin and intelligent agent tools to support the rollout of '10 industry benchmark models' and '100 demonstration scenarios'."

COSMOPlat is the industrial internet platform of Chinese home appliance company Haier Group.

Shanghai's plan calls for the establishment of about 10 "AI +Manufacturing" demonstration factories, development of around five integrated service providers, and cultivation of a group of competitive specialized service firms, in a bid to forge a comprehensive ecosystem for intelligent manufacturing.

Jia Wei, associate director for academic affairs at the Shanghai Artificial Intelligence Research Institute, said the city, as a national hub for scientific research, enjoys advantages in both artificial intelligence and manufacturing.

"The city holds a leading position in sectors such as aviation, aerospace, shipbuilding and high-end equipment. Meanwhile, its strength in AI lies in its strong research capacity, a large talent pool, and a concentration of leading institutions, which jointly create favorable conditions for scaling up innovations and setting national examples," Jia said.

"If the three-year plan meets its targets, including enabling 3,000 enterprises to adopt smart applications and developing 10 industry benchmarks, it is expected to foster a group of competitive service providers and give an unprecedented boost to the integration of AI and manufacturing across China," Jia added.

Jia's views were echoed by Duanmu Haiying, director of the Shanghai MetaNow Metaverse Industry Promotion Center.

Duanmu said she believes artificial intelligence is one of Shanghai's three leading industries and has already built a solid foundation for "AI+" applications.

"So far, nearly 100 large models have been registered, industrial internet platforms connect more than 16 million devices, and the city leads the nation in 5G base station density," she said.

According to Duanmu, Shanghai is home to one-third of China's AI professionals, and by July 2024, the number of industrial manufacturing enterprises in the city had exceeded 80,000, "giving Shanghai confidence in meeting the plan's targets by 2028".

However, there are still some challenges ahead in meeting the goal.

"Developing practical, scalable products and solutions, along with a sustainable intelligent manufacturing ecosystem, will require a large pool of talent skilled in both AI and manufacturing," she said.

"Challenges also remain in connecting industrial equipment, standardizing data, and managing unstructured information. Another key issue is how to develop cost-effective 'AI+' solutions for small and medium-sized manufacturers," Duanmu said.

Overcoming these hurdles will be crucial for the sector's next phase, she added.

According to Jia, the upgrade is seen as a step toward transforming China from a major manufacturing country into a leading power in smart manufacturing.

"By focusing on data, models and closed-loop application scenarios, the plan aims to move the sector from isolated intelligent functions to full-chain smart manufacturing. This, in turn, is expected to position China's intelligent manufacturing as a global benchmark," Jia added.