SHANGHAI is fast emerging as a key hub for artificial intelligence, rolling out new measures to deepen integration of AI across industries.

Authorities have unveiled a blueprint to expand applications, including plans for 10 “AI + Manufacturing” demonstration factories and new service providers to build a full ecosystem for intelligent production.

In the first quarter alone, the city’s AI industry hit 118 billion yuan (US$16 billion), rising 29 percent year-on-year, with profits growing 65 percent annually, becoming a powerful new engine of economic growth.

Leading multinationals have adopted state-of-the-art manufacturing and research capabilities in Shanghai and joined forces with local collaborators to drive the industry forward.

ABB

China, the world’s largest robotics market, accounted for more than half of global robot installations in 2023. The country is also the largest single market for ABB Robotics.

China’s growth in sectors such as electronics and the smart manufacturing trend from small- and medium-sized businesses is driving the increasing demand for accessible, user-friendly solutions, explained Henry Han, president of ABB Robotics in China.

ABB Robotics’ Shanghai Mega Factory and R&D center serve as a closed-loop innovation ecosystem, which is the foundation and guarantee for advancing AI technology from concept to implementation and ultimately empowering local customers.

In July, the Zurich-headquartered global technology giant expanded its portfolio with three new robot families to support China’s ongoing expansion in advanced manufacturing. The new robot families address a wide range of automation needs in high-growth sectors, including electronics, consumer industries and general industries, from essential material handling to high-end applications like dispensing and polishing.

ABB has embedded AI across its own manufacturing and supply chain, with over 250 AI projects under way, more than double the number from a year ago. These projects span internal initiatives to optimize workflows and boost efficiency, and external collaborations with clients to drive product innovation and unlock potential.

The company also draws ideas from local innovations and startups through the ABB Cup Innovation Contest. This year’s contest received over 350 proposals and some of them will be assessed and further developed into commercial solutions.

Currently, over 90 percent of the robotics products ABB supplies to Chinese customers are manufactured locally. Additionally, it’s also strengthening supply chain localization to directly work with local suppliers, and plans to increase this proportion of local components/service providers to approximately 80 percent this year.

“This represents not only our commitment to the Chinese market but also our dedication to responding more swiftly to the needs of our Chinese customers,” Han added.

Signify

Dutch lighting giant Signify located its largest R&D site and the China Research Institute in Shanghai to empower its shift towards smart lighting solutions

Earlier this year, Signify launched the first industry-specific Generative Artificial Intelligence agent.

“We are committed to exploring the deep integration of artificial intelligence technology with smart connected lighting systems both in terms of professional lighting and home lighting,” said Liu Haitao, Head of Research China at Signify.

By incorporating AI algorithms into lighting products and solutions, it aims to achieve more efficient energy management, more precise operational decision-making, and a more intelligent and seamless user experience. It has already launched its first AI-driven lighting solution in the Chinese market in May.

Signify has also leveraged AI application experience accumulated in urban smart lighting operations and maintenance into industry standard frameworks in China, including core capabilities such as intelligent event response, predictive maintenance, and data-driven decision-making.

In the home lighting area, it has deeply integrated AI individualized lighting solution based on different mood and atmosphere, to enhance the home living environment and entertainment experience.

In terms of its own operation procedure, an enterprise-level generative AI platform was put into use last year which enabled easier access to AI tools to help enhance consumer market insight, customer engagement and internal operation efficiency.

“Looking ahead, we will focus on key areas such as smart buildings, healthy living environments, and urban sustainable development, deeply advancing the integrative innovation of AI technology with lighting solutions,” Liu noted.

Siemens

During the 2025 World Artificial Intelligence Conference, Siemens showcased its solutions and commitment toward the integration of generative AI into the manufacturing, energy, and building sectors.

When China’s robust industrial foundation meets the surging wave of AI innovation, the German tech and manufacturing giant expects to see further synergies that could accelerate the intelligent and smart transformation of Chinese manufacturing and further push up productivity.

Siemens Xceleartor, an open digital business platform that includes a curated portfolio of internet-of-things-enabled hardware, software and digital services, was launched in China in 2022.

It’s designed to enable local enterprises of different scales in industries, buildings, power grids and transportation to achieve digital transformation, making it easier, faster and more conducive to large scale implementation.

The locally developed SiePA (Siemens Predictive Analytics) system has also incorporated industrial AI capabilities and big data analytics technologies.

By deeply analyzing the manufacturing systems’ historical data, it offers precise assessments of equipment status and intelligent diagnosis of possible risks, while promptly providing professional maintenance recommendations. This significantly reduces the risk of unplanned downtime, enhances production efficiency, and effectively reduces operational costs.

Siemens said it is accelerating its industrial AI strategy in China through high quality data, industry expertise, and comprehensive full-stack capabilities integrating hardware and software. It will continue to collaborate with local customers, developers, and ecosystem partners via the Siemens Xcelerator platform to build an open innovation ecosystem.

In Shanghai, Siemens also plans to actively seek collaboration opportunities with leading local enterprises and innovative SMEs across specific industry scenarios, particularly within the city’s competitive sectors such as automotive manufacturing, electronics and information technology, and shipbuilding.