In order to constructure and promote the intelligent grid demonstration community project, this paper presents the functional framework and business model of Advanced Metering Infrastructure (AMI). Firstly, the basic conception of AMI is introduced. Secondly, the functional framework of AMI is constructured, which contains metering data management, user interaction, electricity data collection and electrical appliances control. After that, the business model of metering data managing, user interacting, electricity data collecting and electrical appliances controlling are proposed. At last, the whole work in this paper is concluded. The functional framework and business model provide the theoretical reference for the construction of the intelligent grid demonstration community project in China.