(ECNS) -- More than 700 million people in China were using generative artificial intelligence as of mid-2026, with a penetration rate of more than 50%, according to a report released by the China Internet Network Information Center (CNNIC).
The report found that generative AI is rapidly expanding beyond chatbots and search functions, with applications extending across consumer electronics, office productivity, manufacturing, agriculture, healthcare and scientific research.
AI becomes part of everyday life
AI-powered question answering remains the most common use of generative AI in China, with 76% of users saying they use the technology to get answers to questions. Nearly half, or 47.8%, use it to process images or videos, while 37.6% use it for text-based tasks and 32.5% for work-related tasks such as preparing summaries, meeting minutes and presentations.
Use of general-purpose AI assistants and AI productivity tools has also surged, with user access to both types of services increasing by more than 100% year on year, the report said.
The growing use of AI is also driving demand for smart devices. Some 38.7% of Chinese internet users said they had bought smart hardware online in the previous six months. Wearable devices and 3C digital products were among the most commonly purchased items, with 20.2% of internet users buying smart wearable devices and 18.2% purchasing 3C digital products such as smartphones and tablets.
China expands AI infrastructure and applications
China's AI capabilities continue to expand across the technology supply chain. The country's intelligent computing capacity reached 2,185 exaflops as of June, up 177% year on year, according to the report.
The report said China has also strengthened its domestic AI ecosystem, with breakthroughs in computing hardware, large language models and data infrastructure. More than 120,000 high-quality datasets have been developed, supporting the development of AI models and applications.
AI applications have expanded into key industries, including steel, non-ferrous metals, power and telecommunications, and are gradually extending into areas such as product research and development, quality inspection and customer services.
AI adoption is also deepening across the manufacturing sector. As of June, more than 30% of manufacturing enterprises above designated size had adopted AI technologies, with applications spanning the full production chain, including research and development, design, manufacturing, quality inspection and operation and maintenance.
Agriculture is also emerging as a major field for AI applications. In June 2026, China's State Council issued a plan for accelerating agricultural and rural modernization during the 15th Five-Year Plan period, which identified promoting AI use and developing smart agriculture as an important goal. Over the past year, several agricultural large language models, including Shennong 4.0, Guyu Nongqi V2.0 and Fanli 4.0, have been launched.
Humanoid robots are another fast-growing area. More than 400 humanoid robot products were available in China during the first half of 2026, with annual production expected to exceed 100,000 units, the report said.
Investment and policy support gain momentum
The report also highlighted growing investment and government support for the sector. China recorded 1,255 AI-related investment and financing deals in the first half of 2026, equivalent to 78% of the full-year total for 2025.
The combined value of these deals reached about 250.14 billion yuan ($34.8 billion), equivalent to 182% of the full-year total recorded in 2025, according to the report.
China has also been expanding its policy framework for AI, with a growing focus on applying the technology in practice while strengthening governance and regulation, the report said.
The country's policy framework for generative AI has continued to evolve, with policy priorities increasingly focused on practical applications and standardized governance. In line with the State Council's opinions on the in-depth implementation of the "AI Plus" initiative, multiple government departments have introduced a series of supporting policies covering national strategy, industry applications, infrastructure and international cooperation.
China has also made advances in key AI technologies, including domestically developed AI chips and computing clusters, while advances in core algorithms have improved model reasoning capabilities and efficiency. The country's open-source AI ecosystem has also continued to expand, with Chinese models such as DeepSeek and Qwen gaining greater influence, the report said.
(By Evelyn)
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