ISTANBUL 

China is aiming to transform its financial capital Shanghai into a leading center in the development of artificial intelligence (AI), with the city announcing a subsidy program in the latest effort to boost the local industry.

The move comes as Chinese Premier Li Qiang proposed the establishment of an organization to promote global cooperation in the development of AI during his speech at the opening ceremony of the World Artificial Intelligence Conference in Shanghai on Saturday.

"The aim is to unleash the dividends of AI, bridge the AI divide, and make sure that AI is for good," Chinese Foreign Ministry spokesman Guo Jiakun told a news conference in Beijing on Tuesday.

Guo said that China was "tentatively considering establishing the organization’s headquarters in Shanghai to give full play to the city’s pioneering role in the field of AI and to pool consensus and advance cooperation," according to a readout of press conference.

His remarks came as Shanghai announced a subsidy program worth 1 billion yuan ($139 million) for the city’s AI industry as it bids to compete with other Chinese cities that are also investing to develop world-class AI ecosystems.

The subsidy package sets aside funds to lower expenses for start-ups and support the local adoption of AI technologies.

The subsidies for be used toward computing power, facilitating discounts on third-party AI models and assistance for companies in acquiring datasets needed to train new models.

According to a joint statement released at the end of the World Artificial Intelligence Conference, AI is a "new frontier in human development" which is a "key driving force of the ongoing scientific and technological revolution as well as industrial transformation and an international public good that benefits humanity."

AI "presents unprecedented opportunities for development, and it also brings unprecedented risks and challenges," it said.

"In the AI era, only through global solidarity can we fully unleash the potential of AI while ensuring its safety, reliability, controllability and fairness and ultimately deliver on the commitments outlined in the UN Pact for the Future," it added.