Illustration: Liu Xidan/GT

According to a recent report by the National Data Administration, cited by the Xinhua News Agency, more than 400 million people in China use artificial intelligence (AI) to obtain information and answers. The figure highlights both the scale of AI adoption in China and the speed at which a consumer market for the technology is emerging. Behind this number lies a question that often gets less attention than advances in models and computing power: how to build demand for AI at scale. In the digital economy, the ability to turn technological innovation into sustained consumer demand may prove as important as innovation itself.

The report provides more detailed figures on AI usage in China, suggesting the scale of the market. It shows that 457 million people use AI to obtain information and answers, 288 million use it to generate images and videos, and 184 million rely on AI-powered assistants in daily life.

These figures offer a close-up view of China's AI market as it takes shape in real time. The large-scale integration of AI into everyday life remains a relatively recent phenomenon, largely confined to the past few years, yet it has already given rise to a market involving hundreds of millions of users. That pace of formation is notable in itself. 

International commentary on AI has often focused on technological competition and geopolitical implications, while paying less attention to a key force shaping its development: the market itself. Yet the dynamics of adoption and demand are becoming an increasingly important factor in the story.

One way to take stock of China's rapidly developing AI market is to view it from several perspectives. First, the scale is substantial. This reflects, in part, China's population base, which provides a natural advantage for the development of the digital economy. But demographics alone do not fully explain the picture. The availability of competitive products is also playing an important role. High-quality offerings are pushing the boundaries of the AI market outward, bringing ever-larger numbers of users into its fold.

AI adoption in China extends beyond consumer use into industrial applications. As a core driver of the digital economy, AI provides strong support for industrial development and is accelerating the realization of the benefits of digital transformation. AI adoption is increasingly transforming traditional industries. According to a report by CCTV News, China has built more than 35,000 basic-level smart factories, more than 8,200 advanced-level smart factories, more than 500 excellence-level smart factories, and 15 leading smart factories.

A second way to assess China's AI market is by its potential. The report from the National Data Administration shows that users of generative AI under the age of 40 account for 74.6 percent of the total. The youthfulness of the user base, together with a range of other factors, points to considerable room for expansion in China's AI market. It has been shown that China's AI applications are able to attract young users and provide sustained vitality in many areas.

According to China's Ministry of Industry and Information Technology, the scale of China's core AI industry exceeded 1.2 trillion yuan ($177 billion) in 2025. 

A third dimension is the economic potential of the AI market - that is, the value it can generate. This potential operates on multiple levels. On the consumer side, individuals benefit from AI services and, in some cases, pay for them directly. On the production side, AI can enhance efficiency and productivity, creating value across a range of industries.

In China, AI is helping to empower the digital economy. It is the world's largest holder of AI patents, and its vast data resources are widely regarded as another key asset. According to the China Academy of Information and Communications Technology, China's digital economy reached 59.2 trillion yuan in 2024. For international investors and multinational companies, grasping the dynamics of China's AI market may be crucial to navigating opportunities within the country's digital economy.

At a time when many economies are pursuing the development of AI, some Western commentary remains focused on a zero-sum view of geopolitical competition, often at the expense of a practical driver: markets. The importance of markets should not be underestimated. China's ability to cultivate a rapidly growing AI market in a relatively short period rests on its competitive technologies and applications, offering a concrete lens on the development of its AI industry and digital economy. 

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn