Shanghai, as a leading hub for artificial intelligence (AI) in China, has been contributing its expertise to support AI development and global governance in recent years. According to the Shanghai government, the industry has become a new engine for the city’s economy. By the end of the first quarter of 2025, the total industrial value of Shanghai-based AI companies with a minimum annual sales revenue of CNY20 million had exceeded CNY118 billion, up 29% year-on-year. The profit generated by these companies surged 65% year-on-year. Shanghai has also established many AI communities which can provide support to different sorts of companies. For instance, the SMC Shanghai Foundation Model Innovation Center in Xuhui district mainly fuels large language model (LLM) development companies, while the Model Magic Community in the Pudong New Area mainly supports embodied intelligence and applications. The two communities are home to more than 700 AI businesses and can offer life-cycle financial support to businesses.
Over the past few years, Shanghai has promoted cooperation and communication within the AI industry. The annual World Artificial Intelligence Conference (WAIC), inaugurated in 2018 in Shanghai, has become a key platform for global experts and businesses to exchange opinions on the latest developments and seek ways to address challenges. The 2025 World AI Conference & High-Level Meeting on Global AI Governance, held in Shanghai in July, attracted more than 1,500 industry leaders, government officials, researchers and investors from more than 70 countries and regions. The three-day event, centered around the theme “Global Solidarity in the AI Era”, drew more than 300,000 visitors, with over 100 products making their global or China debut. One of the key outcomes of the 2025 edition was the release of an action plan for global AI governance. It invites governments, international organizations, enterprises and research institutions to collaborate and promote international exchanges, including through a cross-border open-source community. With significant strides made in AI ecosystem development, Shanghai is becoming a popular destination for developing such technology and products, as well as seeking partnerships for foreign investors in recent years.
Switzerland’s ABB, which has been leading robotic industry development for more than 50 years, regards AI-powered innovation as the core of its future development. According to the company, AI not only optimizes industrial processes, leading to improved efficiency and productivity, but also makes robots easier to use, reducing barriers. Globally, ABB has more than 250 projects in its pipeline, spanning both analytical and generative AI. These include internal projects that optimize workflows and enhance efficiency, and external projects that are developed in close collaboration with customers to drive product innovation and unlock new value. The Shanghai Mega Factory, one of ABB’s three such facilities worldwide and established in 2022, plays a crucial role in advancing the company’s AI development in China. “The factory is not just a production site but also our testing ground for AI innovation,” said Henry Han, Senior Vice President of ABB Group and President of the ABB Robotics Division in China. “Our Shanghai Mega Factory and research and development (R&D) center together form an innovation ecosystem encompassing research, production and application.
In July, ABB launched three innovative robotic products from its Shanghai Mega Factory, targeting automation requirements across sectors such as electronics, consumer goods, and general industries. These new offerings – powered by ABB Robotics’ OmniCore single control platform that enables the full integration of AI, sensors, cloud and edge computing systems – are designed to handle tasks ranging from basic material handling to sophisticated applications such as dispensing and polishing. So far ABB has produced 90% of its robots in China for local clients. It has also committed to increasing the localization of its supply chain in recent years. Han said ABB, with roots in China dating back to 1994, will continue to use the capacity of its Shanghai Mega Factory to promote its “local-to-local” strategy to better serve businesses in China.
Siemens, which has been developing AI technology for more than 50 years, is accelerating its efforts in China by leveraging its expertise in the industrial sector. According to Xiao Song, Global Executive Vice President of Siemens, and Chairman, President and CEO of Siemens China, the country’s manufacturing industry is at a critical stage of high-quality development. In emerging sectors such as battery manufacturing and new energy vehicles (NEVs), China not only has large-scale and complete supply chains but is continuously shaping new advantages in global industrial competition. “Siemens is confident about future development in China. This confidence stems from China’s comprehensive industrial system, the most complete in the world, as well as its more than 6 million manufacturers, of which most are small and medium-sized enterprises that are active across various segments of the industrial value chain. Additionally, China fosters a robust atmosphere for innovation, further enhancing its appeal as a key market for Siemens,” said Xiao. “The window of opportunity for industrial AI has opened, with China offering the most dynamic application landscape. It is fertile ground for incubating industrial intelligence. In the future, those who can effectively implement AI, run successful applications, produce tangible results and create value, will seize the initiative in the new era of productivity,” he said. Shanghai will continue to be a vital city in supporting the company’s journey in the AI world, according to the company, as reported by the China Daily.
