Editor's note: China is riding the wave of an AI-powered transformation. As AI reshapes industries and daily life, it is not only driving automation and increasing efficiency, but also unlocking new possibilities. Xinhua hereby presents a series of six stories on the "new frontiers of AI applications," exploring how this technology is redefining sectors and enriching everyday experiences. The following is the first piece to introduce how local governments are accelerating the integration of AI into public administration and urban management.

BEIJING -- As China deepens its digital transformation drive, multiple cities across the country have adopted DeepSeek-powered AI services to enhance governance and streamline urban management.

The initiative is part of China's broader effort to develop a digital government and accelerate the transition to high-efficiency administration, aiming to meet the public's growing aspiration for a better life.

China's southern tech hub Shenzhen has become the first city in the country to announce the deployment of the DeepSeek model in government services.

Local government in the city's Longgang district completed the localization of the DeepSeek-R1 model within its digital infrastructure in early February, providing intelligent support for over 20,000 civil servants.

The district also integrated an AI assistant powered by DeepSeek into a mini-program on the instant messaging platform WeChat to improve services for enterprises.

Following Longgang's efforts, Shenzhen's Futian district introduced 70 "AI employees" on Feb 18. These digital sidekicks are powered by DeepSeek and embedded in localized knowledge bases.

These digital employees function well in spheres like public document processing, public services, emergency management, and investment promotion, covering a total of 240 administrative scenarios.

Accordingly, government efficiency has been improved, with document processing achieving 95 percent format accuracy, cutting review time by 90 percent, and reducing errors to below 5 percent.

Additionally, digital helpers have improved the accuracy of handling public service requests from 70 percent to 95 percent while reducing the customization time for tailored administrative services from five days to just minutes.

"The goal of using large models like DeepSeek is to achieve the intelligent transformation of government services, which aims to streamline government work process, optimize business environment, and empower industrial development," said Wang Yaowen, deputy director of Shenzhen's government services and data management bureau.

The AI-powered governance initiative is not limited to first-tier cities like Shenzhen. Linyi in East China's Shandong province has also incorporated DeepSeek into its digital government system, particularly in financial sector applications.

One notable example is the "Yimeng Insight" system, which aggregates business lifecycle data to generate corporate credit profiles, facilitating financial support for enterprises. Since its introduction, the system has created profiles for over 14,000 businesses, aiding in loan approvals worth 3.66 billion yuan (about $510 million).

The tale of the two cities highlights China's strong commitment to harnessing digital technology for smarter, more efficient public administration. Over the years, the country has rapidly advanced e-governance, introducing one-stop government service platforms and virtual public services to enhance administrative efficiency and modernize governance.

This year's government work report reaffirmed China's commitment to accelerating the development of a digital government, vowing to refine the integrated national online platform for government services.

"Integrating AI models like DeepSeek into government services will enhance public service efficiency through content generation and intelligent interaction, advancing the modernization of urban governance systems and capabilities," said Wu Yiping, a professor at Shanghai University of Finance and Economics.

However, as AI-driven governance expands, experts say that challenges related to data security, privacy protection, and ethical considerations remain crucial.

"We should be mindful of the boundaries of AI applications to prevent over-reliance and systemic risks following the integration of AI into government systems," said Wu Shenkuo, deputy director of the research center of the Internet Society of China.

"The ethical risks and fairness concerns arising from AI-assisted governance decisions also require a careful and comprehensive assessment," Wu added.