In the past year, artificial intelligence has become one of the most talked-about technologies globally. Advances in both hardware and algorithms within basic research, combined with practical applications in industry, have led to growing confidence that AI will significantly reshape people's lives, learning methods, business strategies, and even government decision-making over the next decade.
As artificial intelligence begins to open up new frontiers, Shanghai is making bold moves to establish itself as a globally influential science and technology hub. The city aims to create a world-class cluster of emerging industries centered around AI. But how can Shanghai leverage its strengths to drive AI innovation? Industry experts agree that there are three key areas to focus on: algorithm and chip development, nurturing "unicorn" startups, and expanding AI applications.
**1. Algorithm and Chip**
"This current AI boom is primarily driven by deep learning algorithms," said Shen Yinglong, an AI expert at the Shanghai Institute of Science and a researcher involved in national AI-related projects. He explained that this marks the third wave of AI development. Since the term "artificial intelligence" was first coined in 1956 during a summer conference at Dartmouth College, the field has experienced ups and downs. Early optimism about AI’s potential was tempered by slow progress until the rise of deep learning techniques around ten years ago.
"Deep learning, along with big data, cloud computing, and high-performance computing, has truly accelerated AI development," said Meng Haihua, a researcher at the Shanghai Institute of Science. She emphasized that for Shanghai to lead in AI, it must focus on both algorithm innovation and chip development—two critical elements for long-term success. Currently, Shanghai hosts around 17% of China’s AI startups, second only to Beijing, many of which have strong expertise in chips and algorithms.
"The state’s AI plan highlights the 'new generation' of AI, focusing on algorithms and chips to secure the future," added Ma Xingfa, deputy director of the Shanghai Municipal Science and Technology Commission.
**2. Cultivating “Unicornsâ€**
Artificial intelligence is more than just a technological breakthrough—it represents a major step forward in human civilization. During the previous internet boom, Shanghai lacked a leading company that could shape the entire industry. Now, with the AI era, the question is whether the city can foster more "unicorns"—high-growth startups with significant market value.
Meng Haihua noted that encouraging small and medium-sized AI companies is crucial for building a high-tech industrial ecosystem in Shanghai. Google, for example, has maintained its leadership by continuously integrating innovative ideas from smaller startups. In Shanghai, around 10 AI "unicorns" are quietly emerging, gaining recognition in the field. To support these companies, the Shanghai AI chip platform is being actively developed. Already, the platform is attracting attention, with several well-known domestic AI chip firms expected to set up operations in the city.
**3. Expanding Applications**
The rapid growth of AI depends heavily on "data fuel" and real-world application scenarios. "Shanghai has a unique advantage in big data," said Meng Haihua. The city has made significant progress in opening up government data, and further efforts are needed to build world-leading datasets in specific fields. Additionally, Shanghai’s advanced mobile internet infrastructure and tech-savvy population provide a rich environment for AI applications.
With such a solid foundation, Shanghai is already seeing the emergence of various AI-powered solutions. From food safety monitoring using AI vision systems to intelligent medical robots and smart health devices, AI is improving daily life. In transportation, deep learning and image processing technologies are helping optimize traffic flow. As AI moves beyond daily use into industrial applications, the future may bring even more groundbreaking innovations.
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