Analyst: China's AI market is going through a phase of consolidation, with the focus shifting to monetization
China's artificial intelligence market is entering a new stage of development. Competition among companies is gradually shifting from a race to build ever more powerful models to finding effective ways to commercialize and practically deploy them.
This shift marks the end of the so-called "war of a hundred models," which has defined the sector's dynamics for several years. The market is consolidating around a limited number of major players capable of transforming consumer AI products into reliable corporate infrastructure.
Utility becomes the top priority
Chinese models may slightly lag behind their American counterparts in certain technical metrics, but this is no longer a decisive factor for achieving commercial success in the domestic market. What comes to the forefront is the technology's ability to solve real business problems.
Models have already reached a level capable of performing a significant portion of intellectual work. The key question now is not further performance enhancement, but creating products that users and companies are willing to pay for.
Platforms test new monetization models
Major technology platforms have already begun implementing paid services. For example, ByteDance's AI application Doubao launched several subscription plans in May, ranging from 68 to 500 yuan per month (approximately $10–$74).
Concerns about Chinese users' reluctance to pay for software appear exaggerated. Demand will primarily be determined by the ability of services to demonstrate tangible value to customers.
The corporate market will determine the winners
The next phase of China's AI development will be tied to corporate products, process automation, and the integration of AI into existing digital ecosystems. The industry is transitioning from competing on model quality to vying for real revenue streams and long-term competitive advantages.
As the market consolidates, companies that can not only create advanced models but also build sustainable business models around them—focused on corporate clients and practical technology applications—will gain an advantage.
Expert opinion: This trend is completely logical—the AI market is maturing, and investors are increasingly focusing on return on investment. Technology giants that can effectively monetize their developments in the corporate segment will gain a significant competitive edge in the coming years.