A laboratory combining manufacturing, artificial intelligence and the internet was established on Thursday by China Baowu Steel Group, as the nation's biggest steelmaker looks to raise production efficiency with the aid of state-of-the-art technology.

The intelligent manufacturing technology and application joint studio, which is under Baowu Central Authority Research Institute, will serve as a platform for cooperation on artificial intelligence to promote the mutual development of AI and technological innovation.

Baowu Central Authority Research Institute has developed its own research and development capacity through cooperation with global universities, institutes and corporations, but it remains new to the AI sector, and that is why the AI research center was set up, said Zhang Qunliang, head of intelligent manufacturing institute at Baowu Central Authority Research Institute.

"There are massive requirements for artificial intelligence technology in various divisions of Baowu, and our new center will be an open platform for cooperative research and development between Baowu and organizations involving AI research," said Zhang.

"Combining AI and industry is full of opportunities, and it is particularly so for China as it is uncharted territory in which the chances are dependent on one's own exploration and research," said Guan Ruifeng, deputy general manager of Baidu Cloud.

The decision to set up the AI research center was also inspired by an example of how digital and intelligent technology can reshape manufacturing, according to Zhang.

Zhang visited Big River Steel in the US state of Arkansas, which has greatly improved its efficiency with the widespread application of digitalization and intelligent technology.

According to him, average annual steel output per person has reached around 3,356 metric tons at Big River Steel, and with the launch of its second phase that figure will reach 4,536 tons soon. This is a great advance compared to current Chinese steel mills' average steel output per person of 1,000 tons a year, added Zhang.

"Efficiency means profit. And what's happening at Big River Steel is our prospect," said Zhang.

Baowu and Baidu signed a strategic cooperative agreement in Beijing last Friday, according to which cooperation in AI, big data, cloud computing, and internet of things will be carried out throughout the entire steel industry chain, in order to establish an intelligent ecosystem for the sector.