Most Chinese AI apps losing customers despite massive 700 million user base, report shows

China’s artificial intelligence mobile apps have over 700 million users, but most services are losing customers as the sector continues to consolidate, according to a new report.

The number of monthly active users (MAU) for AI mobile apps – which include AI-native apps as well as those with integrated AI features – reached 729 million in September, according to a report released by research firm QuestMobile on Tuesday. That compared with 680 million in June, based on previous data compiled by the firm.

AI-native apps – those built with AI at the core, such as the namesake consumer-facing chatbot of DeepSeek – had 287 million users, while in-app services – which provide intelligent AI features – had 706 million users.

However, not all developers were benefiting from the expansion of the AI user base amid fierce competition in this field. Nearly 60 per cent of AI-native apps lost users in the third quarter, the QuestMobile report showed.

“For new entrants or small and medium apps, the window of building a successful AI-native app is narrowing,” the report said. “Developers need to go deeper in verticals.”