WESTMINSTER, U.K. - s4story -- A new industry briefing released by a London-based cross-border marketing and communications agency highlights how artificial intelligence is increasingly embedded across China's digital marketing and e-commerce landscape, following official data showing generative AI adoption has reached 602 million users nationwide.

The analysis is based on the latest report from the China Internet Network Information Center (CNNIC), which recorded 1.125 billion internet users in China as of December 2025. Generative AI penetration reached 42.8 percent of the population.

Usage data shows broad integration of AI tools in everyday digital behaviour. Around 457 million users reported using AI to answer questions, 288 million used AI to generate images or video, and 184 million used AI applications as digital assistants.

Industry research further indicates high consumer familiarity with AI marketing tools. In a March 2025 iResearch survey (N=1,487), 85.7 percent of respondents said they had learned about or used AI-based tools. Among those aware, common applications included AI customer service (60.4 percent), AI shopping assistants (53.1 percent), virtual try-on (48.8 percent), AI livestream hosts (48.4 percent), AI-generated copy or images (46.5 percent), and promotional video generation (40.5 percent).

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China's digital advertising market reached 1.13 trillion yuan (US$156 billion) in 2023, growing 12.4 percent year on year, with analysts linking expansion to AI-driven creative production.

The briefing also notes the rise of "digital humans," with 311 leading profiles analysed in the 2024 Virtual Digital Human Influence Index Report across sectors including e-commerce and media production.

Recent policy signals highlight growing momentum in AI deployment. In Shenzhen's Longgang district, draft proposals include subsidies covering 40 percent of AI agent spending (up to RMB 2 million annually per company), while Wuxi has proposed funding caps of up to RMB 5 million per project.

At the same time, some organisations have raised data security concerns around AI agent tools such as OpenClaw.

The report concludes that AI in China has moved beyond experimentation into revenue-driving workflows, particularly in creative production, customer interaction and livestream commerce, while also introducing new compliance and governance considerations for international brands.

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