appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Minxiao Chang

China is surging ahead of the US in consumer AI adoption as technology giants like Tencent Holdings and Alibaba Group Holding embed artificial intelligence directly into popular everyday apps, even as American models lead in capability, according to Morgan Stanley.
A survey conducted by the bank and published in a report on Monday showed that 80 per cent of Chinese respondents used AI for personal purposes at least weekly, compared with 54 per cent in the US.
China’s generative AI user base grew from about 249 million in December 2024 to 602 million in December 2025, scaling significantly faster than mobile internet adoption did over a comparable period, the report said.
While basic access to AI remained free in both nations, China’s advantage stemmed from distributing services through everyday platforms tailored to local consumer habits, rather than holding an edge in frontier model benchmark performance, Morgan Stanley noted.
In China, generative AI functions – capable of producing text, images, video or code – are embedded directly into shopping, search, messaging and entertainment apps, allowing users to leverage AI without downloading stand-alone software.
ByteDance’s Doubao, which received traffic from TikTok’s Chinese sibling Douyin, has emerged as the clear leader among native AI apps, reaching about 399 million monthly active users (MAU) in July, according to QuestMobile data cited in the report.

It was followed by Alibaba’s Qwen – an AI agent designed to execute real-world tasks by plugging directly into Alibaba’s ecosystem of shopping, travel booking, navigation and payments platforms – with 161 million MAUs.
However, “multi-homing” was becoming the norm, with 64 per cent of surveyed Chinese respondents using five or more AI tools, Morgan Stanley said. The low cost of switching between apps prevented a winner-take-all situation for stand-alone apps and favoured existing platforms that control user demand, proprietary data and transactions, according to the bank.
As a result, incumbents with strong distribution networks were best positioned to benefit, according to Morgan Stanley. Tencent, in particular, was likely to see its WeChat ecosystem of social graphs, mini-programmes and payments enhanced rather than displaced by native AI tools.
Alibaba remained a top stock pick for the bank for its full-stack capabilities, particularly in-app commerce features like Taobao’s Qwen shopping assistant, though analysts remained cautious about investments in the stand-alone Qwen app.
Meituan and online travel agencies were also well-positioned because of their high conversion efficiency at low incremental acquisition costs.
Alibaba is the owner of the South China Morning Post.


Huawei unveils latest tech to boost AI power in push to break China’s Nvidia reliance

Hong Kong’s 5-year plan, policy continuity offer investors more stability, experts say

Huawei accused of stealing robot tech to get hands on T-Mobile’s trade secrets

Hong Kong aims to raise innovation spending to 3% of GDP by about 2030

Artificial intelligence (AI)

China is beating the US in consumer AI adoption, thanks to super apps: Morgan Stanley

The paid version of ByteDance’s Doubao app. Photo: CFOTO/Future Publishing/Getty Images

A visitor tries out Alibaba’s Qwen AI glasses during the World AI Conference in Shanghai on July 17. Photo: AP

Chinese researchers chart 5-stage path toward ‘last AI built by humans’

Automating AI research has emerged as a core battleground in US-China technological competition. Photo: Shutterstock Images

Visitors walk past a display depicting artificial intelligence and a human hand at the China International Supply Chain Expo in Beijing on June 22, 2026. Photo: AP 

Chinese optical transceiver makers dodge US ban for now as FCC updates rules

Wiring is seen inside a Microsoft data centre in Mount Pleasant, Wisconsin, September 18, 2025. Photo: Reuters

Optical transceivers facilitate the transmission of data in data centres. Photo: Shutterstock Images

The logo of Zhongji Innolight is seen at the launch of the company’s initial public offering in Hong Kong on July 30. Photo: AFP

AI bottleneck-breaker: China’s Huawei touts high-speed optical module

A man walks by a Huawei store in Beijing on July 8, 2026. Photo: Reuters

NPO technology aims to bring optical components closer to compute chips, reducing signal loss and energy costs. Photo: Shutterstock Images

Apple enters a crowded foldable smartphone market in China – can it beat Huawei?

Apple’s foldable iPhone Duo is unveiled during Apple’s special event at the Steve Jobs Theater in Apple Park in Cupertino, California, United States, on Wednesday. Photo: EPA



DeepSeek embarks on ‘unprecedented’ hiring spree as it overhauls back end systems

The DeepSeek logo displayed on smartphone screen. Photo: Shutterstock

Tech

Big Tech

Tech Trends

Tech War

While the US has a lead in frontier AI, China’s advantage stems from distributing services through platforms tailored to local habits


While the US has a lead in frontier AI, China’s advantage stems from distributing services through platforms tailored to local habits.


China is beating the US in consumer AI adoption, thanks to super apps: Morgan Stanley

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}While the US has a lead in frontier AI, China’s advantage stems from distributing services through platforms tailored to local habits

While the US has a lead in frontier AI, China’s advantage stems from distributing services through platforms tailored to local habits