Three major "keywords" to understand AI

In the past year, artificial intelligence has become one of the most talked-about technological trends. With continuous advancements in both hardware and algorithms, as well as the integration of AI technologies with industrial development, more and more people are convinced that within the next decade, artificial intelligence will significantly reshape how we live, learn, do business, and make decisions. As artificial intelligence opens up new frontiers, Shanghai is aiming to establish itself as a globally influential science and technology hub. The city is determined to build a world-class cluster of emerging industries focused on AI. So, how can Shanghai lead the way in AI innovation? Industry experts and scholars have identified three key "keywords" to unlock the potential of AI. 1. **Algorithms and Chips** "The current AI boom is mainly driven by deep learning algorithms," said Shen Yinglong, an AI expert at the Shanghai Institute of Science and a researcher involved in projects under the Ministry of Science and Technology. He added that this marks the third wave of AI development. Since the term "artificial intelligence" was first introduced in 1956 at a summer conference at Dartmouth College, AI has evolved through various phases, sometimes facing challenges and setbacks. In the early days, many researchers believed that with the rise of computers and improved CPU power, AI would soon become a reality. However, progress was slower than expected. About a decade ago, the emergence of deep learning marked a turning point, making AI algorithms much more powerful. Combined with big data, cloud computing, and high-performance computing, these innovations have accelerated AI's growth. "Chips and algorithms are crucial for the long-term development of AI," said Meng Haihua, a research associate at the Shanghai Institute of Science and Industrial Innovation Research Office. She emphasized that Shanghai aims to become a leading center for AI development and must focus on these two critical areas. Currently, there are hundreds of AI startups in Shanghai, covering fields like speech recognition, robot learning, and machine vision. Around 17% of China’s AI companies are based in Shanghai, ranking second after Beijing. Many of them have strong expertise in chips and algorithms, giving them a competitive edge. Ma Xingfa, deputy director of the Municipal Science and Technology Commission, highlighted that the national AI plan emphasizes the “new generation” of AI, focusing on future-oriented technologies such as advanced algorithms and cutting-edge chips. 2. **Cultivating "Unicorns"** Artificial intelligence is not just a technological breakthrough—it represents a major shift in human civilization. During the previous internet boom, Shanghai lacked a leading company that could drive the industry forward. Now, with the rise of AI, the question is: can Shanghai nurture more "unicorns"? With cities across China actively promoting AI development—like Beijing’s Zhongguancun and Shenzhen—Shanghai is focusing on fostering small and medium-sized AI enterprises. According to Meng Haihua, Google's success in AI stemmed from its ability to absorb new ideas and technologies from smaller startups and teams. This strategy helped it stay at the forefront of the field. Currently, around 10 AI "unicorns" are emerging in Shanghai, gaining influence in the AI sector. To support more AI companies, the Shanghai AI chip platform is being developed. Early signs show a "leading talent" effect, with several top domestic AI chip firms planning to settle in the city. 3. **Endless Applications** The rapid growth of AI relies heavily on "data fuel" and "application scenarios." Shanghai, with its rich and unique data resources, is well-positioned to lead in this area. Meng Haihua noted that the city has made significant progress in opening up government data, and further efforts are needed to build world-leading specialized datasets. Additionally, Shanghai's mobile internet infrastructure is highly developed, with users open to adopting new technologies. This creates a wealth of real-world application scenarios, which are essential for accumulating large amounts of data. Based on this foundation, Shanghai is expected to develop numerous successful AI applications. Today, AI is already being applied in various fields. In food safety, AI acts as a "pair of eyes" to ensure public health. In healthcare, intelligent medical robots and devices are becoming increasingly common. In transportation, deep learning and image processing technologies are improving traffic efficiency. As AI moves beyond daily life into industrial applications, the future may bring even more groundbreaking innovations. With the right strategies and continued investment, Shanghai is well on its way to becoming a global leader in artificial intelligence.

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