Shanghai is advancing efforts to deepen the integration of artificial intelligence (AI) across its service, manufacturing, and consumption sectors as part of its ambition to become a global AI hub, according to international experts and business leaders. The discussions took place during the 38th meeting of the International Business Leaders’ Advisory Council for the Mayor of Shanghai (IBLAC) on Sunday, an annual event that brings together executives from multinational companies to offer guidance on Shanghai’s economic development.
With 42 executives from 14 countries attending this year’s meeting, participants highlighted Shanghai’s strong industrial foundation, its strategic location within the Yangtze River Delta, and its mature service industry, which accounts for more than 80 percent of the city’s GDP, as key advantages for leveraging AI technologies. Mohamed Kande, global chairman of PwC, noted that AI-driven innovations are creating new opportunities in areas such as smart manufacturing, intelligent logistics, warehousing, and transportation. To maximize these benefits, he emphasized the need for closer collaboration between technology providers, researchers, capital investors, and international service companies to tackle real-world economic challenges.
Sir Martin Sorrell, founder of S4 Capital, described Shanghai as emerging into a testing ground for global AI governance and the transformation of service industries. He outlined AI’s evolving role from boosting operational efficiency to fundamentally restructuring value chains. He urged the city to align more closely with international regulations, encourage data flow, expand application scenarios, foster a talent-friendly ecosystem, and promote international cooperation to establish Shanghai as a global center for AI-powered services.
Zhang Lei, founder of Hillhouse Investment, highlighted the importance of deploying AI in practical business contexts. He recommended expanding key AI application scenarios that impact corporate operations and cultivating forward-deployed engineers skilled in both AI and industry-specific knowledge. According to Zhang, such initiatives would enable AI innovations developed in China to reach global markets through Shanghai.
Jason Furman, an economist and former chair of the U.S. Council of Economic Advisers, pointed to Shanghai’s natural suitability for developing a generative AI regulatory sandbox specifically for the financial sector. He explained that such sandbox supervision, already referenced in numerous countries worldwide, can improve financing opportunities for companies.
In the healthcare sector, Gary S. Guthart, executive chair at Intuitive Surgical, discussed the potential of combining AI with robotics and high-quality medical data to revolutionize care delivery. He praised Shanghai’s pilot initiatives to develop datasets for robot-assisted surgeries, experiment with secure medical data sharing methods, and establish a replicable “Shanghai model” for responsible medical data use.
Jean-Paul Agon, chairman of L’Oreal, stressed AI’s critical role in driving high-quality growth by reshaping value chains, empowering talent, and modernizing commercial models. He noted that AI can enhance manufacturing sustainability by enabling greater flexibility and customization and create personalized consumer experiences through seamless online-offline integration. Agon called for a more inclusive technological environment and a strengthened business ecosystem to connect Shanghai with global innovation frameworks.
Shanghai Mayor Zhu Zhongming remarked that AI and other new-generation information technologies are profoundly influencing service industry development by reshaping delivery methods, service environments, content offerings, and efficiency. The city plans to accelerate the digital and intelligent transformation of its service sector using AI to foster new growth drivers and competitive advantages.
Shanghai’s service industry has demonstrated steady growth, with revenue increasing by 9 percent year-on-year in the first eight months of 2024. The city aims to raise the added value of its service sector to 6 trillion yuan (approximately $895 billion) by 2030, reflecting its confidence in AI’s role in sustaining future expansion.