Artificial intelligence (AI) is becoming increasingly integrated into businesses across Wenzhou, east China's Zhejiang Province, helping manufacturers improve efficiency, reduce costs and accelerate their transformation.

In the city's traditional footwear and apparel industries, AI is being used to turn the expertise of experienced workers into data. One application can identify leather types from images within seconds, cutting testing times from at least two days to a matter of seconds. AI-powered defect detection is also under development.

Larger companies are using AI to monitor production and manage research projects, while small businesses are finding more accessible applications. One clothing retailer, for example, uses AI to create model images from photographs, reducing modelling costs and speeding up product production.

To support smaller firms, Wenzhou opened Zhejiang's first officially designated Token factory in July. Token consumption by the city's manufacturing sector surged 2,261 percent from the previous quarter in early 2026.