What: China reaches 230 million generative AI users in retail, with Baidu's Ernie Bot leading at 11.5% market share, showcasing the country's rapid adoption of AI-powered shopping solutions.

Why it is important: The dominance of domestic AI platforms in China's retail sector, surpassing global tech giants, reveals the growing competitiveness of local AI solutions and their potential to reshape international retail technology standards.

China's generative AI landscape has reached a significant milestone with 230 million users, representing one in six users in the world's largest internet market. Baidu's Ernie Bot has emerged as the market leader with an 11.5% share, outperforming international competitors like ChatGPT and Google's Gemini, which hold 7% and 3.8% respectively, despite not being officially available in mainland China. The adoption patterns reveal distinct user preferences, with nearly two-thirds of users employing AI for question-answering services and one-third utilising it for work-related tasks such as meeting transcripts and presentations. The market's maturity is evidenced by the registration of over 309 GenAI products with Chinese regulators, with Beijing and Shanghai emerging as primary innovation hubs. This widespread adoption has led to the commercial availability of more than 190 services, demonstrating China's robust AI ecosystem and its growing influence in shaping global retail technology trends.

IADS Notes: The rapid adoption of AI in China's retail sector, with 230 million users, mirrors broader global trends in AI integration. As noted in March 2024, Adobe's research demonstrated strong consumer acceptance with 58% recognising AI's positive impact on shopping experiences, particularly in clothing purchases . This consumer enthusiasm has driven industry-wide adoption, with a June 2024 Lucidworks study revealing that the retail sector leads in AI deployment, as nearly half of retailers report increased revenue and cost savings from their AI initiatives . The momentum continued through November 2024, when BCG's survey showed 38% of global consumers actively using GenAI during major sales events, with 80% reporting positive experiences. This progression suggests that China's extensive AI user base represents not an isolated phenomenon but part of a global shift toward AI-enhanced retail experiences.

China's retail AI adoption hits 230M users