AI CITIES INSIGHTS BY QWEN

Global AI Cities Landscape 2025-2026

Asia dominates the global AI ecosystem with 6 of the top 7 cities worldwide. Singapore leads the Global AI Cities Index 2025, followed by Seoul (#2), Beijing (#3), and Dubai (#4), while San Francisco rounds out the top 5. This represents a fundamental shift in the geography of innovation, with Asian cities driving AI development through massive state investment, unique super-app business models, and strong government-industry collaboration.

Asian AI Powerhouses

China leads with $98B AI investment achieved its target of 45 EFLOPS computing power in 2025, now scaling toward 2026. Singapore's Smart Nation 2.0 strategy positions it as the global #1 with S$500M funding. South Korea commits $1.5B to smart manufacturing, while Japan's Society 5.0 vision addresses aging population challenges. India's Bangalore emerges as the world's second-largest AI talent hub with 6M+ professionals, ranking 26th globally and leading the nation in AI R&D.

Western AI Innovation Centers

San Francisco remains the AI startup capital with 31% of global AI engineers and 3.3x higher startup density than Beijing. New York attracts 11% of global AI investments, while London leads Europe with 69 notable AI startups. Boston re-enters the Top 5 global ecosystems powered by MIT-Harvard collaboration. Paris accelerates to #12 globally, driven by abundant AI talent and repeat founders launching sophisticated ventures.

Emerging Trends & Innovations

Super-app ecosystems dominate Asia with WeChat, Grab, and Kakao creating integrated AI experiences. Multilingual AI innovations address 1,000+ languages in ASEAN with specialized models like SeaLLMs 3. Technology sovereignty drives data localization policies amid US-China rivalry. Regional collaboration strengthens through ASEAN's AI Roadmap (2025-2030) and China-ASEAN AI Cooperation Center, while manufacturing AI reduces supply chain errors by 20-50% with 80% of regional leaders planning deployment.

Data Insight: Asia-Pacific leads with $130B+ combined investment, while maintaining 6 of top 7 global AI city positions. Regional collaboration through ASEAN initiatives balances competition with the US-China AI rivalry.

ASEAN AI Roadmap 2025-2030

Key Initiative: China-ASEAN AI Cooperation Center establishment planned as hub for joint projects, balancing collaboration with technology sovereignty amid US-China rivalry.

Asian Super-App Ecosystem Leaders

AI + Manufacturing Regional Leaders

Key Insight: Asia claims 6 out of 7 top global AI cities, with San Francisco's 31% of global AI talent maintaining Western innovation leadership despite ranking #5 overall.

Regional Shift: Asia dominates the top rankings with 6 out of 7 best AI cities located in the Asia-Pacific region, reflecting a fundamental shift in the center of gravity in the global technology race. European cities such as London, Paris, and Dublin maintain strong positions in the battle for AI talent, while Germany and Central and Eastern European countries are gaining competitive momentum.

San Francisco

San Francisco remains the dominant global hub for AI talent, accounting for over 31% of AI engineers worldwide. The Bay Area has seen a remarkable 24% increase in tech talent with AI skills compared to last year, according to CBRE's 2025 Scoring Tech Talent report. Despite rising costs, San Francisco and New York still anchor the AI ecosystem, with over 65% of AI engineers based in these two metropolitan areas. The city continues to attract top AI startups, with companies even leasing luxury apartments for staff and offering large rent stipends to compete for the best talent in this highly competitive market. Major AI infrastructure events like the AI Infra Summit (November 7, 2025) highlight San Francisco's commitment to maintaining U.S. digital sovereignty in AI development.

Beijing

Beijing is aggressively pursuing its ambition to become the world leader in artificial intelligence by 2030, with substantial government backing driving this transformation. By 2025, Beijing aims to establish an impressive 45 EFLOPS of AI computing power while enhancing AI chip self-reliance and building a comprehensive regional AI computing ecosystem. The city has launched ambitious initiatives including opening 100 AI scenarios that will provide 10,000 high-quality positions by the end of 2025. Beijing's strength lies in its rich AI talent resources, strong R&D capabilities, and active product iteration across the AI development spectrum. The city recently hosted the 2025 Artificial Intelligence Computing Conference, which unveiled four major innovations that are shaping China's AI landscape.

London

London maintains its position as Europe's premier AI startup hub, ranking third globally in total numbers of new AI startups, behind only Silicon Valley and New York. The city boasts numerous cutting-edge AI startups that gained prominence in 2025 and continue to show promise for 2026, including ElevenLabs, PolyAI, and Fabula AI, which are making significant strides in generative AI and conversational systems. London's ecosystem continues to thrive with 69 notable AI startups being closely monitored by investors and industry analysts as we move into 2026. The city's strength lies in its ability to attract both talent and capital, positioning it as a crucial bridge between European and global AI markets.

Shanghai

Shanghai has established itself as a leading hub for artificial intelligence in China, actively contributing its expertise to support both domestic and global AI development initiatives. The city's Pudong New Area holds the distinction of being China's first artificial intelligence innovation pilot zone, with ambitious plans to cluster 1,000 AI firms in the Zhangjiang AI corridor. Shanghai's strategic focus on creating an integrated AI ecosystem has made it a key player in China's national AI strategy, complementing Beijing's research-heavy approach with strong commercial applications and industry partnerships.

Toronto

Toronto has emerged as Canada's AI powerhouse, hosting innovative startups like Ideogram, which is developing advanced text-to-image generation technology that's gaining international recognition. The city benefits from strong academic institutions and government support for AI research, making it an attractive destination for AI talent and investment. Toronto's ecosystem is characterized by its collaborative approach between academia, industry, and government, creating a fertile ground for AI innovation across healthcare, finance, and creative industries.

New York

New York City ranks second globally in terms of total numbers of new AI startups, trailing only Silicon Valley but ahead of London. The city's AI ecosystem is particularly strong in financial technology, healthcare AI, and creative applications, leveraging its position as a global financial and cultural capital. New York continues to attract significant AI talent and investment, with many startups choosing the city for its diverse industry applications and access to large enterprise customers.

Seoul

Seoul has secured the second position in the Global AI City Index 2025, following only Singapore and surpassing major global hubs like Beijing and Dubai. South Korea's capital has become a powerhouse in AI development, particularly in consumer electronics, robotics, and semiconductor technologies that support AI infrastructure. Seoul's success stems from strong government-industry collaboration, world-class research institutions, and a highly educated workforce that has embraced AI technologies across various sectors.

Paris

Paris has experienced remarkable growth in its AI ecosystem, moving up two positions to rank #12 globally in the 2025 startup ecosystem rankings. The city's acceleration over the last 12-24 months has been largely driven by its abundant AI talent pool and a new wave of repeat founders who are launching sophisticated AI ventures. France's ecosystem gained significant global attention following the AI Action Summit at the beginning of 2025, which positioned Paris as a key player in the European AI landscape. The city has become particularly strong in AI applications for climate tech, healthcare, and creative industries.

Boston

Boston has made a significant comeback in the global rankings, moving up one position to re-enter the Top Five Global Startup Ecosystems in 2025 after spending two years in the #6 position. The city's AI strength comes from its unparalleled concentration of world-class research institutions including MIT and Harvard, which continue to produce cutting-edge AI research and spin out successful startups. Boston's ecosystem is particularly strong in healthcare AI, biotechnology applications, and robotics, with strong collaboration between academia and industry driving innovation.

Bangalore (Bengaluru)

Bangalore has emerged as India's undisputed leader in AI, securing the 26th rank in the Global AI City Index 2025 by Counterpoint Research and leading the nation in AI R&D, startups, and data infrastructure development. The city has made an impressive jump of 7 spots to rank 14th in the Global Startup Index 2025, and now boasts the world's second-largest AI talent hub with over 6 million professionals. Bangalore has been recognized as one of the top 12 global tech powerhouses, alongside established markets including Beijing, Boston, and London. The city's strength lies in its massive talent pool, cost-effective development capabilities, and growing number of AI startups that are solving problems for both domestic and global markets.

These cities represent the cutting edge of global AI development as we transition into 2026, each bringing unique strengths and specializations to the rapidly evolving artificial intelligence landscape.

The New Geography of AI Innovation

As we enter 2026, we witness a historic inflection point in the global AI landscape. The data reveals an unmistakable eastward shift in technological leadership, with Asia claiming 6 of the world's top 7 AI cities. This is not merely a temporary trend but a fundamental restructuring of innovation geography driven by massive state investments, unique business models, and visionary government strategies that Western markets are only beginning to understand and respond to.

Three Distinct AI Ecosystems Emerge

The analysis reveals three distinct AI development models shaping the global landscape. Asian cities lead through state-directed investment and super-app integration, achieving unprecedented scale and citizen adoption. Western hubs maintain advantages in startup density, venture capital, and foundational research, with San Francisco still commanding 31% of global AI talent. Emerging markets are carving specialized niches—Bangalore's talent arbitrage, Dubai's smart city infrastructure, and Southeast Asia's mobile-first innovations—creating a multipolar world of AI excellence.

The Race for AI Sovereignty

Perhaps most significantly, the US-China AI rivalry has catalyzed a global race for technological sovereignty. Every major economy is now developing independent AI capabilities, data localization policies, and regional standards. ASEAN's AI Roadmap, China's 45 EFLOPS computing target, and Europe's AI Act represent parallel efforts to reduce dependence on dominant players. This fragmentation paradoxically drives faster innovation as cities compete not just for market share, but for technological independence.

Looking Forward: The Next Phase

The cities profiled in this analysis are not just implementing AI—they are redefining what AI-native societies look like. From Singapore's treaty-negotiating algorithms to Seoul's predictive healthcare to Shanghai's 1,000-company AI corridor, these urban laboratories are creating blueprints for humanity's AI-integrated future. As we move beyond 2025, success will depend not just on technological advancement, but on how effectively cities can align AI development with human values, social cohesion, and sustainable prosperity. The race is not just to build the smartest city, but the wisest one.

"Throughout 2026, we are witnessing the full emergence of the AI century—where algorithms don't just serve cities, but fundamentally shape their identity, values, and role in our interconnected world."