Summary:

In the last month (November 2017), officials in both Shanghai and Beijing have announced new plans to develop their respective AI industries, with both cities setting out goals to develop world-leading AI companies and increase cooperation between industry and academia.

In Shanghai, the Municipal Commission of Economy and Information Technology set out its AI Blueprint on November 14^th. The plan calls for revenue in the sector to reach 100 Bn RMB (£11 Bn) as soon as 2020, as well as being home to 10 “global AI giants” – including some with a market value of over $1 Bn USD. According to the blueprint, the city will set up industrial zones focusing on AI applications, support investment in AI, and make more data openly available.

Meanwhile in Beijing, the Zhongguancun Science Park which is home to many technology companies and start-ups has set out its own industry incubation plan, focusing on cooperation between companies, universities and research institutes. AI is one of the main priority fields, along with the closely related field of big data. The plan aims to double the area’s number of AI-related companies to 500, including five “internationally competitive AI enterprises”, and increase the total industry value to 500 Bn RMB (£56 Bn).

Analysis by Kevin Prest:

Although both plans are mainly focused on downstream applications rather than academic research, increased attention and funding within this field may create opportunities for UK institutions. Institutions and companies are open to increased international cooperation in this area.

It should be noted that both of these plans are very ambitious, especially that of Shanghai which is not currently known as a major hub for the AI industry. Zhongguancun, which is home to many domestic and international companies in the IT field, has a stronger reputation in this space and according to media reports is already home to 43 per cent of China’s current AI start-ups.

China is not the only country that treats AI as a focus area for economic development. The UK’s recently-released industrial strategy also includes the field of AI and big data as one of five “grand challenges” that will receive government support.

Sources:

1. Zhongguancun releases plan to develop AI industry (Xinhua): http://news.xinhuanet.com/english/2017-11/25/c_136779071.htm

2. Shanghai’s AI Sector Set to Fourish (ECNS): http://www.ecns.cn/business/2017/11-15/281055.shtml