China Leads US in AI Adoption via Everyday Apps
China now surpasses the United States in consumer adoption of artificial intelligence. This trend is driven by Chinese technology organisations integrating AI directly into popular daily applications. American models may lead in capability, but China's approach to distribution through widespread platforms tailored to local habits provides a distinct advantage, according to a recent report by Morgan Stanley.
A survey conducted by Morgan Stanley revealed that 80 per cent of Chinese respondents utilised AI for personal reasons at least once a week. This figure compares to 54 per cent in the United States. The report detailed a significant expansion in China's generative AI user base, increasing from approximately 249 million in a prior period to 602 million in a later period. This growth rate proved substantially faster than the adoption curve observed for mobile internet during a similar timeframe.
And while basic access to AI tools remained free in both nations, China's lead stems from its method of delivering these services. They are distributed through existing everyday platforms designed for specific consumer behaviours, rather than through superior performance in advanced AI model benchmarks. Generative AI functions, which can create text, images, video, or code, are embedded directly into applications for shopping, searching, messaging, and entertainment. This allows users to access artificial intelligence without needing to download separate stand-alone software.
ByteDance's Doubao application has emerged as a prominent participant among native AI offerings. This platform benefited from traffic channelled from Douyin, TikTok's Chinese counterpart. Doubao recorded approximately 399 million monthly active users in a recent month, according to data from QuestMobile, which Morgan Stanley cited in its report. Following Doubao, Alibaba's Qwen reached 161 million monthly active users. Qwen operates as an AI agent designed to carry out practical tasks by connecting directly into Alibaba's broad ecosystem of shopping, travel booking, navigation, and payment services.
But a widespread practice known as "multi-homing" is becoming common, with 64 per cent of Chinese survey participants using five or more distinct AI tools. The low expense associated with switching between applications prevents a single winner from dominating the stand-alone app market. This situation favours established platforms that already manage user demand, hold proprietary data, and process transactions, the bank indicated.
Consequently, companies with robust distribution networks are best situated to gain from these developments. Morgan Stanley specifically highlighted Tencent, anticipating that its WeChat ecosystem, encompassing social connections, mini-programmes, and payment systems, will be strengthened rather than replaced by new AI tools. Alibaba also maintained its position as a preferred stock for the bank due to its full-stack capabilities, particularly in commerce features within apps.
So, features such as Taobao's Qwen shopping assistant were noted as strong points. However, analysts expressed caution regarding investments in the stand-alone Qwen application. Meituan and various online travel agencies were similarly well-positioned, attributed to their high conversion efficiency and minimal additional costs for acquiring new users.
China leads the US in consumer AI adoption, driven by super apps.
80 per cent of Chinese respondents use AI weekly, compared to 54 per cent in the US.
Generative AI functions are embedded into everyday Chinese applications.
ByteDance's Doubao and Alibaba's Qwen are leading native AI apps by user numbers.
Incumbent platforms with strong distribution networks are expected to benefit most.
Source: SCMP
