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Visitors examine apparel designed with AI at the 23rd Keqiao Textile Expo (Autumn) in Shaoxing, China. [Photo/IC]

Shaoxing has introduced a new three-year plan to accelerate the growth of its artificial intelligence industry, positioning the city at the forefront of the next wave of digital transformation.

The Shaoxing artificial intelligence industry development action plan (2025-27) outlines eight major action tasks and 21 measures to build an innovation ecosystem that integrates AI with manufacturing, urban services, and cultural development.

The plan sets a clear target: by 2027, revenue from the city's core AI industries is projected to exceed 50 billion yuan ($7.07 billion).

Shaoxing's AI sector has expanded steadily in recent years. The city is now home to more than 90 companies specializing in core AI fields, ranking fourth in Zhejiang province. It also hosts five provincial-level future factories and 11 pilot future factory enterprises, among the highest in the province.

The plan calls for stronger foundational capabilities, including the development of industry-specific large models for key sectors such as textiles and dyeing, chemicals, motors, and bearings. A representative from the Shaoxing digital economic industry promotion association said the city aims to cultivate 10 influential industry-specific models to support the high-quality growth of small and medium-sized enterprises.

The transformation is already underway. Shaoxing has promoted a model that applies AI to digital industrial platforms, improving the efficiency of traditional industries. The approach has helped reduce average production costs for SMEs by 13.50 percent and raise performance by more than 22 percent.

Looking ahead, Shaoxing plans to expand AI applications across core manufacturing sectors — including yellow rice wine brewing, textiles and dyeing, and chemicals — while accelerating the development of more smart and future factories across the city, according to the action plan.