The Beijing-Tianjin-Hebei region has emerged as a significant hub for China’s artificial intelligence (AI) industry. This study examines the strategic importance of AI development in accelerating new productive forces and promoting high-quality growth while positioning the region as a pioneer in Chinese modernization. Using a novel seven-dimensional model encompassing algorithms, computing power, data, capital, resources, industrial layout, and security, we analyze the current state and challenges of the AI industry in this area. Our findings indicate significant progress in the region’s AI sector, alongside several critical challenges: a persistent gap in fundamental research and algorithm development compared to global leaders; insufficient intelligent computing power and dependence on key foreign components; data silos limiting commercial applications; financing constraints for AI enterprises and underdeveloped venture capital; increasing resource consumption threatening sustainable development; suboptimal industrial layout and difficulties in regional coordination; inadequate regulatory frameworks and emerging ethical and security concerns. Based on these insights, we propose targeted policy recommendations to address these challenges and foster the sustainable growth of the AI industry in the Beijing-Tianjin-Hebei region.