Baosteel, the core subsidiary of China Baowu Steel Group, has set a world-leading benchmark for AI-driven intelligent steelmaking with its fully AI-powered blast furnace system. The achievement has been hailed by Chen Fangruo, Dean of Antai College of Economics and Management at Shanghai Jiao Tong University, as a landmark embodiment of the ongoing Fourth Industrial Revolution sweeping manufacturing industries globally.

Dean Chen underscored that big data, artificial intelligence, and high-performance computing form the core defining features of the Fourth Industrial Revolution, and Baosteel’s decades-long digital and intelligent upgrade journey perfectly illustrates how traditional heavy industry can embrace cutting-edge digital technologies to unlock new productivity growth.

“Being named a World Economic Forum Lighthouse Factory is globally recognized proof of top-tier advanced manufacturing capability,” Chen said. As of March 2026, the world hosts 224 Lighthouse Factories in total, with 101 located in China — nearly half of the global tally. Baosteel stands out as the first steel enterprise in China to earn the Lighthouse Factory accreditation during its first smart manufacturing development phase spanning 2015 to 2023.

Chen further pointed to another pivotal industry honor solidifying Baosteel’s technological edge: the steel giant was shortlisted among the first batch of 15 national leading-level smart factories certified by China’s Ministry of Industry and Information Technology last year.

“These two prestigious recognitions jointly testify that Baosteel’s AI application capabilities sit at the forefront of China’s manufacturing sector and match the highest global standards,” Chen elaborated.

The academic dean framed Baosteel’s transformation as a microcosm of China’s industrial evolution. Founded in 1978, Baosteel was built to fulfill the nation’s strategic industrial ambitions; in the digital era, its AI smart blast furnace project leads the whole steel industry’s shift from experience-dependent operation to data-driven predictive management.

World-First AI Model Breaks the 'Black Box'

The world’s first AI smart blast furnace model, officially launched by Baosteel on April 3, solves the long-standing “black box” dilemma of ironmaking — a process marked by ultra-high internal temperatures up to 2,300°C and unmeasurable core parameters. Powered by large AI models, the system delivers two-hour-ahead furnace temperature forecasts with over 90% accuracy, a dramatic leap from the 70% prediction accuracy recorded in early 2024.

Upon completion of the No. 1 Blast Furnace’s AI upgrade in the coming days, all four blast furnaces at Baosteel’s Shanghai Baoshan base will operate on full AI control. Each furnace will cut annual operating costs by more than 10 million yuan ($1.48 million) and slash carbon emissions by 5 kilograms per ton of hot metal, balancing economic efficiency and green low-carbon development.

Two-Stage Roadmap to Intelligent Manufacturing

Baosteel has split its intelligent manufacturing roadmap into two distinct stages. From 2015 to 2023, the firm laid digital foundations via Lighthouse Factory construction and demonstration projects. Starting in 2024, designated internally as its “Year of AI”, the company pivoted to AI as the core growth engine, rolling out industry-exclusive large models covering blast furnace production and launching over 600 AI application scenarios across six major business segments, generating over 270 million yuan in cumulative economic benefits.

Industry-Wide Momentum for Smart Steel Transformation

Industry-wide data backs the momentum of smart steel transformation: over 95% of domestic steelmakers have incorporated digital transformation into corporate development roadmaps. Thirty-six steel plants hold national excellent smart factory certification, while 12 steel industry cases feature in the Ministry of Industry and Information Technology’s roster of typical AI-enabled new industrialization applications. Amid a gradual decline in China’s crude steel output, surging market demand for high-value premium steel products accelerates intelligent upgrades across the sector.

Future Outlook: Building the 'Baosteel Brain'

Looking forward, Baosteel targets the completion of its “Baosteel Brain” centralized decision-making platform by 2030, advancing China Baowu’s AI 2.0 strategy to build a greener, smarter, and more efficient future steel production paradigm.

Academic Thought Leadership Fuels Industrial Intelligent Upgrading