(Yicai Global) Nov. 14 -- The Shanghai government has introduced a new policy today to encourage the development of next-generation artificial intelligence (AI) technology in response to the advent of technology and industry revolutions seen globally. The government expects the sector to play a significantly larger role in stimulating innovation-driven development, economic transition and the upgrading of social governance in the city by 2020.

Shanghai aims to become a national leader in AI development and a global leader in certain AI businesses.

The document set specific targets for the development of autonomous driving and five other industries. By 2020, the volume of the self-driving vehicle market in Shanghai will hit CNY30 billion, and volumes of local intelligent robots, intelligent hardware, AI software and core AI chipset industries will grow to CNY20 billion, respectively.

High-end AI sensors with industrial and consumer electronic applications will become more commercialized, filling a domestic market gap.

Shanghai will create an in-depth application ecosystem related to AI that befits its mega city status. As it strives to broaden applications of AI technology, the city will develop about six AI innovation and application demonstration areas and more than 100 AI application pilot projects by 2020, the document states.

The city plans to adopt world-class AI innovation capabilities, with substantial progress achieved in frontier AI theoretical research and core technology development. By 2020, the city will rank among the most advanced AI technology developers in certain areas, and 10 AI innovation platforms will be established, according to the policy paper.

The government wants to nurture the development of new AI businesses and innovation models will emerge at an accelerating pace. Around 10 model enterprises for AI innovation will be fostered in five AI industry clusters, and the total scale of key AI businesses will exceed CNY100 billion.

By 2030, Shanghai will rank among the most advanced AI-innovating locations in the world, and the local AI industry will acquire global influence, thereby laying a solid foundation for the city's development in future, the document stated.