General

AI Industry

The sector producing AI software, hardware, applications, and services.

How the laws define this

Both regulatory instruments establish that the AI industry fundamentally encompasses the research, development, hardware and software products, system applications, and integration services surrounding artificial intelligence technology. They similarly agree that the sector extends beyond core technologies to include related industries driven by the integrated application of AI. However, the instruments diverge in how they specify the practical reach of this definition. The Shanghai Regulations on Promoting the Development of AI Industry focuses on specific technical categories, explicitly identifying basic components, intelligent software, and intelligent terminal industries within its scope. Conversely, the Shenzhen Special Economic Zone Artificial Intelligence Industry Promotion Regulation delineates the downstream impact of the industry by explicitly detailing the societal spheres driven by AI integration, specifically citing services for people's well-being, social governance, and economic development. Compliance teams must therefore evaluate both technical components and sector-specific applications depending on the applicable local regulation.

Synthesised from the 2 statutory definitions below. Each one is quoted in full, with its source.

How jurisdictions differ

What is distinctive in each definition, binding law in force first.

Jurisdiction	Instrument	Status	What is distinctive
Shanghai, China	Shanghai Regulations on Promoting the Development of AI Industry	In Force	This definition explicitly lists basic components, intelligent software, and intelligent terminal industries alongside integration-driven sectors.
Shenzhen, China	Shenzhen Special Economic Zone Artificial Intelligence Industry Promotion Regulation	In Force	This definition emphasizes applications benefiting people's well-being, social governance, and economic development.

What it triggers

In Shanghai, entities in the AI industry must comply with regulations on infrastructure, research, and governance.source
In Shenzhen, the regulation promotes high-quality AI development through innovation, infrastructure, and responsible governance for AI industry entities.source

Definitions (2)

The AI Industry includes all activities related to the research, development, and application of AI technology, covering software and hardware products, system applications, and integration services. It specifically encompasses basic components, intelligent software, and intelligent terminal industries, as well as related sectors driven by AI integration.

Shanghai Regulations on Promoting the Development of AI IndustryDefinition 1 of 2

Encompasses core industries such as the research, development, production, systematic applications, and integrated services of AI-related hardware and software, as well as related industries driven by the integrated application of AI in services for people's well-being, social governance, and economic development.

Shenzhen Special Economic Zone Artificial Intelligence Industry Promotion RegulationDefinition 2 of 2

Not to be confused with

AI industrial cluster

An AI industrial cluster is a specific geographic or functional concentration of AI actors, while the AI industry encompasses all related activities broadly.

AI R&D

AI R&D focuses on foundational research, model, and prototype development, whereas the AI industry includes production, applications, and services.

Questions and answers

What extra sectors does Shanghai include in AI industry?

Shanghai includes basic components, intelligent software, intelligent terminal industries, and sectors driven by AI integration.

How does Shenzhen link AI industry to societal benefits?

Shenzhen ties the AI industry to services for people's well-being, social governance, and economic development.

Do these definitions cover only core AI or also related fields?

Both include related industries driven by AI integration, but specify different focuses like terminals in Shanghai and well-being services in Shenzhen.