大摩-中国AI路径：消费级AI-超越聊天机器人竞赛

Morganstanley

RESEARCHAsiAPAciFicINsigHt

September14,202609:33PMGMT

China'sAIPath

ConsumerAI:Beyondthe

ChatbotRace

Chinaleadsglobal2CAIadoptionthankstostrongdistributionandclearusecases.WhilestandaloneAI-nativeappscaptureearlymindshare,in-appAIoffersbetterROI.WeseeAI

acceleratingexistingmobile-internetmonetizationandestimateaRmb300bnChina2CAImonetizableTAMby2030.

Alphawise回

Chinaisaheadattheconsumer-adoptionlayer,drivenbydistributionanduse-casefit.OurAlphaWisesurveyshows80%weeklypersonalAIusageinChinavs.

54%intheUS.Basicaccessisfreeinbothmarkets,butChina'sadvantageisthat

freeaccessiscoupledwithecosystemdistribution,CNYcampaignsandabroader

rangeofeverydayusecases.AIisridinganalreadymaturemobile-internetlayerandisincreasinglyembeddedintoexistingapps.

AI-nativeappswinearlyconsumermindshare,butin-appAIhasbetterROI.

ByteDance'sDoubaoremainstheclearAI-nativeappleader,at~400mnMAU,butourAlphaWisesurveyalsoshowsthatmulti-homingisdeepeningratherthanfading.Wecontinuetopreferin-appassistantsoverAI-nativeapps,fromaneconomic

perspective,becausein-appassistantscanmonetizeexistingtraffic,proprietarydata,permissions,merchantsupplyandpayment/fulfillmentwithoutrebuildinguser

habitsfromscratch.ThenextcompetitivemetricshouldincreasinglymovefromMAUtotaskcompletion,AI-attributedconversion,andGMV.

Weestimate~Rmb300bnofChina2CAImonetizableTAMby2030.Unlike

traditionalinternetplatforms,whichbenefitfromhighfixedcostsandlowmarginalcosts,AIproductsfaceastructurallydifferentcostcurve–everyadditionalqueryconsumesinferencecompute.WeviewconsumerAIprimarilyasanaccelerantforexistingmobile-internetrevenueratherthanastandalonerevenuepool.Wesize

China's2CAImonetizableTAMof~Rmb300bnby2030,with99%comingfrommerchant-sideintentmonetization.

Stockimplications–favordistributionandverticalexecution;staydisciplinedonstandalone-appspend.WefavorTencent(WeChatmoatlooksmorelikelytobe

enhancedthandisplacedbyDoubao)andverticalleaders(Meituan,Taobao,OTA,etc.)whoseexistingproductsalreadyowndemand,dataandexecution,where

incrementalacquisitioncostislowandconversioncanbemeasured.BABAremainsourtoppickgivenitsfull-stackAIcapabilities,butourviewspecificallyonits

consumerAIinitiativesismorebalanced:Taobao/QwenShoppingAssistantandthebroadercommercestackarestrategicallyattractive,whiletheeconomicsofheavystandaloneQwen-appinvestmentwarrantcontinueddiscipline.Wearemore

cautiousonBaidu,TMEandiQIYIbecauseAIcandisrupttheircorebusiness–search,musicandvideocontentcreation.

MoRGANSTANLEyAsiALimiTED+

GaryYu

EquityAnalyst

Gary.Yu@

+8522848-6918

KathyZhu

ResearchAssociate

Kathy.Zhu@

+8523963-2618

EddyWang,CFA

EquityAnalyst

Eddy.Wang@

+8522239-7339

RebeccaXu

EquityAnalyst

Rebecca.Xu@

+8522848-7359

JoanneLau

ResearchAssociate

Joanne.CY.Lau@

+8523963-1592

AndyMeng,CFA

EquityAnalyst

Andy.Meng@

+8522239-7689

YangLiu

EquityAnalyst

Yang.Liu@

+8522239-1911

TomTang

EquityAnalyst

Tom.Tang@

+8523963-1860

LydiaLin

EquityAnalyst

Lydia.Lin@

+8522239-1572

CHiNAINTERNETANDOTHERSERvicEs

AsiaPacific

IndustryViewAttracti∨e

MorganStanleydoesandseekstodobusinesswith

companiescoveredinMorganStanleyResearch.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofMorganStanley

Research.InvestorsshouldconsiderMorganStanley

Researchasonlyasinglefactorinmakingtheirinvestmentdecision.

Foranalystcertificationandotherimportantdisclosures,refertotheDisclosureSection,locatedattheendofthisreport.

+=Analystsemployedbynon-U.S.affiliatesarenotregisteredwithFINRA,maynotbeassociatedpersonsofthememberandmaynotbesubjecttoFINRArestrictionson

communicationswithasubjectcompany,publicappearancesandtradingsecuritiesheldbyaresearchanalystaccount.

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Morganstanley

RESEARCH

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OurThesisinCharts

Exhibit1:OurThesisinCharts

Source:MorganStanleyResearchEstimates.

Exhibit2:Tencent/WeChatecosystem

Source:MorganStanleyResearch.Tencent.1.Since4Q19,2.In2024,3.In4Q25.

Morganstanley

RESEARCH

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ExecutiveSummary

Whatthemarkethadassumed…

•AI-nativeappswillbecomethedominantconsumerAIentrypoint.

•ConsumerAImonetizationwillmainlyresembleUSfreemiumsoftware:paidsubscriptionsfirst,withadvertisingaddedlater.

•Thebestfoundationmodelshoulddeterminetheconsumerwinner.

•AI-nativeappsarethemaindisruptionthreattoincumbentsapps.

Whatouranalysisrevealsinstead…

•Distributionanduse-casefitexplainmoreofChina’sconsumer-adoptionleadthanfrontier-modelsuperiority.BasicaccessisfreeinbothChinaandtheUS;

Chinahascombineditwithstrongerecosystemdistribution,CNYpromotionsandabroadersetofdaily-usescenarios.OurAlphaWisesurveyshowsweeklypersonalAIuseat80%inChinavs.54%intheUS.ChinapersonalAIdaily-usescenarios

remainconcentratedininformation,creation,decisionsupportand,increasingly,commerce-relatedtasks.

•AIhasalsodiffusedfasterthanmobileinternetdidatacomparablestage.

China’sgenerative-AIuserbaserosefrom~249mninDec-2024to~602mninDec-2025,consistentwithAIscalingasasoftwarelayerontopofanalreadymaturemobileinfrastructure.

•AI-nativeappsareefficientatusereducationandtop-of-funnelintentcapture,butmulti-homingisacceleratingratherthanfading.QuestMobileJulydatashowDoubaoat~399mnmonthlyaverageusers(MAU),Qwen~161mn,DeepSeek

~124mnandYuanbao~51mn;64%ofourAlphaWisesurveyrespondentsusedfiveormoretools,whichkeepsswitchingcostslowandlimitswinner-take-all

economics.

•In-appAIassistantshavetheclearestnear-termROIbecausetheystartwithexistingtraffic,dataandexecutionrights.Tencentillustratesthedistinction.OurAlphaWisesurveyshows83%past-monthusageofin-appAI;75%of

respondentsfindAIsearch/chatbotfeaturesinshoppingappsuseful,and57%saythesefeatureswouldmakethempurchasemoreoften.Tencentillustratesthe

distinction:Yuanbaoremainssubscaleasastandaloneapp,whileWeChat’ssocialgraph,MiniProgramsandpaymentsgiveAIamuchstrongerpathtotask

completionandmonetizationinsidethecoreapp.

•WeviewconsumerAIasanacceleratortoexistinginternetmonetization.Weestimate~Rmb300bnofChina2CAImonetizablerevenueTAMby2030E,with~99%comingfrommerchant-fundedintentmonetizationthroughadvertisingandAI-attributedtransactioncommissions.Becausemuchofthatrevenuealready

existstoday,theincrementalupsidecomesfrombetterconversion,monetizationandsharegains.In-appAIcanstillearnattractivereturnsbecauseitleveragesanexistinguserbaseanddistribution.

•Theread-throughisthereforemorefavorableforcompaniesthatcanembedAI

Morganstanley

RESEARCH

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intoexistingcommerceandworkflowsratherthanrelyonheavyinvestmentin

standaloneAI-nativeapps.

•META'sMuselaunchprovidesaliveUStestofourthesis.Museisafree

standaloneagentspanningshopping,travel,tickets,calendarandemail,butits

potentialadvantagedependsonintegratingMeta'sdistribution/dataandbroaderserviceecosystem.Atlaunch,itisseparatefromMeta'scoreappsanddoesnot

sharedatawiththeadsystem,sothekeyproofpointsaretaskcompletion,

conversion,monetizablebehaviorandecosystemintegrationratherthanMAU

alone(seemorein

MetaPlatformsInc:MuseHasArrived;WhatMattersNext?[9

Sep2026])

.

1.ChinahasmovedfromusereducationtomassadoptionfasterthantheUSbecauseAIisasoftwarelayerontopofmaturemobileinfrastructure.

China'sconsumerAIpenetrationisalreadymainstream.OurlatestAlphaWisesurvey

showsChina'sweeklypersonalAIusagerisingto80%from75%intwomonths,and

weeklywork-relatedusageto77%from74%inthreemonths.ThelatestUSwaveis~54%forworkandpersonalAIusage.Thecomparisonisnotperfectlylike-for-likeacrossmarketstructureandsurveytiming,butthedirectionisclear:ChinahasdiffusedconsumerAI

fasterdespitetheUSretaininganadvantageinfrontiercomputeandseveralfrontiermodels.

Webelievefivefactorscontinuetoexplainthegap:

•ChinahasstrongerconsumerdistributionchannelsbecauseAIisbeinginsertedintosuperappsandverticalappsratherthanrequiringanewdownload.

•FreeaccesslowerstrialfrictioninbothChinaandtheUS.ChinagainsmorefromitbecausefreeAIispushedthroughlargeecosystems,reinforcedbyCNYcampaignsandattachedtoawidersetofeverydayusecases.

•Manymainstreamusecasesarelow-to-midtokenintensity.

•China'splatformshavestrongercommercialclosedloops.

•Dailyconsumerusecasesoftenrequireamodelthatisgoodenough,fastandaccessible,ratherthantheabsolutefrontiermodel.

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Exhibit3:China'sAIadoptionsremainwellaheadoftheUS

China’sAIadoptionremainswellaheadoftheUS

US–Aug-26China–Jun-26

80%

54%54%

Personaluse–atleastweeklyWork-relateduse–atleastweekly

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

77%

Source:AlphaWise,MorganStanleyResearch.ChinafieldworkJun30–Jul2,2026;USAug2026wave.

2.Theentry-pointraceisbroadening;AI-nativeappswinmindshare,butin-appAIwinseconomics

AI-nativeappshadbeenefficientatusereducation...

QuestMobilecontinuestoshowDoubaoastheclearAI-nativescaleleader.InJuly,Doubaoreached399mnMAUand168mndailyaverageusers(DAU),vs.Qwenat161mn/28mn,

DeepSeekat124mn/31mnandYuanbaoat51mn/9mn.DoubaoalsoledonDAU/MAUat42%,whileDeepSeekalsoremainedrelativelysticky,at25%.

Exhibit4:MAU(mn)

DoubaoremainstheclearAI-nativescaleleader

DeepSeekDoubaoYuanbaoQwen

450

400

350

300

250

200

150

100

50

0

Source:Questmobile,MorganStanleyResearch

Exhibit5:DAU(mn)

Doubao’sDAUcontinuedtoclimbafterCNY

DeepSeekDoubaoYuanbaoQwen

200

180

160

140

120

100

80

60

40

20

0

Source:Questmobile,MorganStanleyResearch

6

Exhibit7:Monthlysessionsperuser

Exhibit6:DAU/MAUratio

DoubaoandDeepSeekleadengagementintensity

DeepSeekDoubaoYuanbaoQwen

90

80

70

60

50

40

30

20

10

0

DoubaoleadsonDAU/MAU;DeepSeekremainssticky

DeepSeekDoubaoYuanbaoQwen

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Source:Questmobile,MorganStanleyResearch

Source:Questmobile,MorganStanleyResearch

...buttheentry-pointraceisbroadening

OurAlphaWisesurveystrengthensthemulti-entry-pointthesis.Past-monthusage

penetrationreached~94%forAI-nativeapps,~83%forin-appAI,and~80%foron-deviceAI,whileagentictoolsroseto~44%.TheaverageconsumeristhereforenotchoosingasingleAIgateway.Themoreimportantquestionis:whichsurfacecanconvertintentintoacompletedtaskwithacceptablecustomer-acquisitionandinferencecosts?

Exhibit8:Multi-homingdeepenedmaterially:NumberofAItoolsusedinthepastmonth,amongtotalrespondents

W38W37

64%32%

24%

30%40%50%60%70%

≥5tools

4tools

3tools

2tools

1tool

None

0%

9%

8%5%

10%20%

Multi-homingdeepenedmaterially

13%

11%

8%

5%

10%

12%

Source:AlphaWise,MorganStanleyResearch.W38isconductedinJune2026,W37isconductedinMarch2026

Exhibit9:AIadoptionisbroadeningacrossentrypoints:Past-monthuseamongtotalrespondents

AIadoptionisbroadeningacrossentrypoints

W38W37

44%Agentictools

11%

80%On-device/smartphoneAI

52%

83%In-appAItools

59%

94%AI-nativeapps/websites/PCapps

72%

0%20%40%60%80%100%

Source:AlphaWise,MorganStanleyResearch.W38isconductedinJune2026,W37isconductedinMarch2026

...andwebelievein-appAIhasbetterROI

OurAlphaWisesurveyaskedwhetherAIinsideaverticalappchangescommercial

behavior–75%ofrespondentsfindAIsearch/chatbotfeaturesinshoppingappsveryorsomewhatuseful,and57%saysuchfeatureswouldmakethempurchasemuchoralittlemoreoften.Thatsaid,AIcreatesmoreeconomicvaluewhenitimprovesanexistinghigh-frequencyworkflow,thanwhenitcreatesastandalonefunnelthatmustbeacquiredandmonetizedfromscratch.

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Exhibit10:Mostconsumersfindshopping-appAIuseful-

amongtotalrespondents

74.5%findAIsearch/chatbotfeaturesinshoppingappsuseful

Havenotused8%

Notusefulatall1%

Notveryuseful2%

Neutral15%

Somewhatuseful58%

Veryuseful17%

0%10%20%30%40%50%60%

Source:AlphaWise,MorganStanleyResearch

Exhibit11:In-appAIcanincreasepurchasefrequency57.4%sayin-appAIwouldincreasepurchasefrequency

Notsure

Muchlessoften

Alittlelessoften

Noimpact

Alittlemoreoften

Muchmoreoften

0%

2%

1%

2%

10%10%

38%

20%30%40%

48%

50%

Source:AlphaWise,MorganStanleyResearch

Recentcompanydevelopmentsvalidatethein-appthesismorethanthestandalone-appthesis.

•Tencent:Tencentdisclosedasmall-scaleXiaoweiprototypeinsideWeChat,

poweredbyacustomizedWeLMmodelforprivacy,WeChat-specificusecases,andinferenceefficiency.TheagentcanuseWeChatcontent,MiniPrograms,merchantreachandpayments;managementexplicitlydescribedafutureagent-to-agent

transactionloop.WeviewthisasastrongerstrategicpathwaythantryingtomakeYuanbaoastandalonesuper-app.

•Alibaba:QwenShoppingAssistantlaunchedinsideTaobaoinMayandwas

describedasprovidingend-to-endassistancefrominspirationthroughafter-sales.ManagementsaidlossesnarrowedsequentiallyasQwenmarketingexpensesfell.ThismakestheROIdistinctionbetweenecosystemAIandstandalone-appspendunusuallyvisible.

•Meituan:2Q26earningscallemphasizedmovingXiaotuanfrom'answering'to

'gettingthingsdone,'withorderplacement,ride-hailingandreservations,whileLongCat2.0andmerchant/operationalagentsprovidemodelandworkflow

support.Thedirectionisconsistentwithourthesisthatverticalplatformsshouldfocusonrealworkflowsratherthantokenvolumeasanendinitself.

3.Monetization–FreemiumattheUserLayer,IntentMonetizationattheCommercialLayer

Doubao'sintroducedprofessionaltierformalizedathree-steppaidstructureat

Rmb68/200/500permonthwhilemaintainingafreebasetier.Qwenintroducedpaid

office-assistanttiersatRmb19/49/128permonthinAugust.Inbothcases,thepaid

propositioncentersonheavierproductivityorgenerationworkloadsratherthanbasic

chat.Thisisconsistentwithouroriginalunit-economicsframework:chargetheusersandtasksthatconsumemoreinference,whilekeepingbroadconsumerentrypointsfree

enoughtopreservescale.

About64%ofourrespondentseitherdonotmindadsinafreeAIserviceorcantoleratesomeadsifanad-freeoptionexists;only~17%saytheywouldrefuseAIappsthatshowads.Adtolerancehassoftenedslightlyinthepastthreemonths,butremainshighin

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absoluteterms.

WethereforeexpectbasicAItostayfreeformass-marketusers,withsubscriptions

reservedforhigh-computefeaturesandthelargermonetizationopportunitycomingfromsponsoredrecommendations,merchantadvertising/leadgenerationandtransaction

commissionstiedtocommercialintent.

By2030E,thisframeworkimplies~Rmb294bn(~Rmb300bn)ofChina2CAImonetizablerevenueTAM,withmerchant-fundedintentmonetization,includingadvertisingandAI-

attributedtransactioncommissions,contributing~99%.AsAIpenetratesmoreconsumerworkflows,thesameframeworkexpandsto~Rmb1.6tnby2040E.Incrementalvalue

continuestocomefromfasterconversion,highermonetization,andsharegainsversusano-AIbaseline.

Exhibit12:AIrecommendationsremainadecisionlayerfor

~halfofconsumers–FrequencyofusingAIrecommendationsforpurchases

AIrecommendationsremainadecisionlayerfor~halfofconsumers

W38W37

7%Never

10%Rarely

35%Sometimes

41%Often

8%Always

0%10%20%30%40%50%

41%

31%

12%

9%

7%

Source:AlphaWise,MorganStanleyResearch.W38isconductedinJune2026,W37isconductedinMarch2026

Exhibit13:FooddeliveryandtravelremaintheleadingAI-assistedtransactioncategories–Amongrespondents

completinganAI-assistedpurchase

FooddeliveryandtravelremaintheleadingAI-assistedtransactioncategories

W38W37

Ride-hailing Consumerelectronics Beauty&cosmeticsHousehold&personalcare Apparel/footwearGroceries

Travel&hotels

Fooddelivery

0%10%20%30%40%

Source:AlphaWise,MorganStanleyResearch.W38isconductedinJune2026,W37isconductedinMarch2026

Exhibit14:AttitudestowardadsorsponsoredresultsinAItools–Majoritytolerateads

Notsure

RefuseAIappsthatshowads

Dislikeads;maypayad-free

Tolerateads;preferremoveoption

Donotmindadsifserviceisfree

Majoritytolerateads

□W38□W37

__」5%_」3%

I1

10%

7%

%

43%

50%

14%

I16

21%

21%

0%10%20%30%40%50%60%

Source:AlphaWise,MorganStanleyResearch.W38isconductedinJune2026,W37isconductedinMarch2026

4.Stockimplications–favormoatsthatAIcandeepen,not

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RESEARCH

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justtrafficthatAIcanaggregate.

Tencentistheclearestpositiveread-throughinourconsumer-AIframework.WedonotexpectDoubaotodisplacetheWeChatsocialoperatinglayer;socialgraph,messaging,MiniPrograms,paymentsandmerchantservicescreatehighswitchingcostsanda

proprietaryexecutionenvironment.AIcaninsteadmakethatenvironmentmoreusefulandmoremonetizable.Importantly,thisdoesnotmeaneveryTencentAIinvestmenthasequalROI:standaloneYuanbaospendingshouldstillbeevaluatedagainstengagementandcommercialconversion.

Forverticalleaders,theimplicationisbroadlyconstructive.ThebestROIshouldsitwhereAIcanbeembeddedintoanexistingdecisionandtransactionflow–Meituan/local

services,Taobao/e-commerce,WeChat/socialcommerce,OTA/travel,BossZhipin/

recruitmentandotherverticalmarketplaces.BABAremainsourtoppickgivenitsfull-

stackAIcapabilities,butourviewspeciallyonitsconsumerAIinitiativesismorebalanced:

weviewQwenShoppingAssistant'sintegrationintoTaobaopositively,whilethe

economicsofheavystandaloneQwen-appinvestmentwarrantcontinueddiscipline.

Baidu,TMEandiQIYIcarrylessfavorableread-throughsbecauseAIdirectlychallengestheircoreconsumercategories:answerenginescanpressureBaidusearch-query/adshare;AImusiccreationcanfragmentTMElistening/discoveryshare;andAIvideogeneration

lowersproductionbarriersandexpandscompetingsupply,pressuringiQIYIviewingshare.Thecommonriskismarket-shareerosionasAIcommoditizesthecoreproduct.

AlphaWiseSurveyMethodology

ThereportisbasedontwoonlinesurveysconductedduringJune30th–July3rd,2026(Wave38)andMarch17th-20th,2026(Wave37),eachcovering~2,000

consumersaged18-59residinginTier1-4citiesinChinaacross19provinces.Thesurveysamplerepresentsurban,moreaffluentandactiveInternetconsumers

relativetothenationalpopulation.Themarginoferrorforfindingsbasedontotalsampleis±1.7%at90%confidencelevel;higherforsubgroups.

Inparallel,thisreportincludesdatafromourmonthlyUSConsumerPulseSurveyof~2,000U.S.consumers,whichtracksconsumerbehavior,attitudes,and

outlook.FulldetailstothelatesteditionconductedfromAugust20th–24th,

2026canbefoundin

ThematicAlpha:USConsumerPulseSurvey:ConsumerAI

AdoptionContinuestoClimb(31Aug2026).

10

ConsumerAlAdoption:ChinaaGlobalLeader

WhyisAIdiffusingfasterthanmobileinternet?

China’smobile-internetadoptionrequiredalonginfrastructureanddevicecycle:mobileinternetusersnumbered~50mnin2007andreached~557mnby2014.ConsumerAIhasscaledmuchfaster,withAIusersrisingfrom~249mninDec-2024to~602mninDec-2025.

Thecomparisonisnotperfectlylike-for-like,butitshowswhyAIcandiffusefaster:itisasoftwareandinterfacelayerbuiltontopofanalreadymaturemobileinternetecosystem.

Exhibit15:ChinaconsumerAIscaledmateriallyfasterthanmobileinternetfromYear0

700

600

Users(mn)

500

400

300

200

100

0

ChinaconsumerAIscaledmateriallyfasterthanmobileinternetfromYear0

Chinamobileinternetusers(mn)ChinagenerativeAIusers(mn)

602

557

500

356

420

249

303

233

50

118

01234567

YearssinceYear0

Source:MobileinternetYear0=2007;ConsumerAIYear0=Dec-2024.ThecomparisonisdirectionalbecauseAIisasoftwarelayerdistributedoveranalreadymaturemobile-internetbase.ChinaInternetNetworkInformationCenter(CNNIC).MorganStanleyResearch

WhyisChina’sconsumerAIpenetrationhigherthanthatintheUS?

OurAlphaWisesurveyshows80%weeklypersonalAIusageinChina(vs.54%intheUS),and77%weeklywork-relatedAIusage(vs.54%intheUS).

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Exhibit16:China'sAIadoptionremainswellaheadoftheUS

China’sAIadoptionremainswellaheadoftheUS

US–Aug-26China–Jun-26

80%

54%54%

Personaluse–atleastweeklyWork-relateduse–atleastweekly

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

77%

Source:AlphaWise,MorganStanleyResearch.ChinafieldworkJun30–Jul2,2026;USAug2026wave.

China’shigher2CAIpenetrationisdrivenmorebydistributionanduse-casefitthanbyfrontier-modelcapability.AlthoughtheUSstillleadsinfrontiermodelsandcompute,

ChinahasbeenfasterinpushingAIintomass-marketconsumerscenariosthroughsuper-appecosystems,lowtrialfriction,low-costusecasesandstrongercommercialclosed

loops.

•1)Chinahasstrongerconsumerdistributionchannels.AIadoptionisnotlimitedtostandalonechatbotdownloads.Itisincreasinglyembeddedintohigh-frequencyappssuchasWeChat,Douyin,Taobao,Alipay,Amap,Meituan,andCtrip,etc.Webelievethenextphaseofadoptionislikelytohappeninsideexistingapps,whereusersalreadysearch,consumecontent,shop,pay,booktravelandorderlocal

services.

•2)FreeaccesslowerstrialfrictionbutisnotuniquetoChina.Whatismore

distinctiveishowChineseplatformscombinefreeusagewithecosystemtraffic,

CNYpromotionsandawiderrangeofdaily-lifefunctions.DuringtheCNYperiod,Doubao,YuanbaoandQwentogetheracquiredaround130mnnewusers,while

Qwendownloadsreached170mninFebruary2026.ThishelpedconvertAIfromanoveltyproductintoabroaderconsumerhabit(seemorein

ChinaInternet:China

ConsumerAI–2026CNYCampaignReview(2Mar2026))

.

•3)Mostcurrent2CAIusecasesarenotverytoken-intensive.Search,Q&A,

short-formwriting,shoppingcomparisonandtravelplanningusuallyrequireonlyshortpromptsandrelativelyshortoutputs(seemoreforconsumerAIusecaseshere:

2.CompetitiveLandscapeandusecases

).Theseusecasesaremuch

cheaperthanlong-documentanalysis,deepresearch,codingagentsormulti-stepautonomousagents.Asaresult,platformscantheoreticallysupportfreeorlow-costusageandmonetizeindirectlythroughads,trafficroutingortransaction

conversion(

Exhibit17

).

•4)China’splatformshavestrongercommercialclosedloops.Chinesesuperappscombinecontent,search,merchants,payment,fulfillment,customerserviceand

advertisinginoneecosystem.ThisallowsAItomovedirectlyfromanswering

questionstorecommendingproducts,bookingservices,placingordersorhandlingafter-sales.IntheUS,individual