An artificial intelligence industry alliance is expected to be established in Shandong province to promote the development of the province's core AI products. [Photo/soho.com]

Shandong province plans to establish an artificial intelligence industry alliance to promote the development of the province's core AI products, according to an announcement made by its economic and information commission on June 26.

Since 2015, some 27 companies have developed their own intelligent manufacturing equipment, 23 of which are included on the national demonstration list, Li Sha, deputy director of the Shandong Province Economic and Information Commission, said.

Li said that intelligent manufacturing has become an important element in the high quality development process for traditional manufacturing companies.

For example, compared with the traditional dyeing process, using the smart bobbin dyeing equipment developed by the Shandong Companion Group Co, a local textile company, helps the company reduce manufacturing costs by 30 percent.

In actuality, traditional manufacturing companies are reluctant to invest in intelligent manufacturing equipment because of the perceived high costs of doing so.

Therefore, advice will be given amongst the upcoming AI industry alliance on how  companies can seek intelligent upgrading cost-effectively.

The alliance also inked a cooperation agreement with the China Electronics Standardization Institute. According to the agreement, the institute will assess the competency of local companies in developing their own intelligent manufacturing equipment.

The Development Plan of Intelligent Manufacturing in Shandong Province (2017-2022) released in 2017 states that by the end of 2022, digital manufacturing equipment will account for more than 72 percent of the equipment used by Shandong's manufacturing companies and more than 200 robots will be available for every 10,000 Shandong residents.