As the representative technology of the new round of scientific and technological revolution，Artificial Intelligence（AI）has a great impact on economic development，urban construction，and social structure. The central government of China vigorously emphasizes the development of the AI industry and introduces a combination of policies to guide scientific research forces and market forces to invest in the research and development of the AI industry and the transformation of results. In this context，this paper summarizes the development history of AI in China and other countries，the current situation of China’s AI industry，the impact and the opportunities of AI for urban development. Additionally，this paper provides some suggestions for the future development of China’s AI industry. To begin with，the government needs to create a basic environment for the AI industry development with better policies and regulations. Secondly，each city should design the AI development strategy based on its situation. Thirdly，the local government needs to construct the Industrial Chain and the Industrial Ecology for the AI industry.