China's GenAI user base hits 515 million as domestic models gain ground

Government report shows generative AI adoption doubled in six months, with local platforms capturing over 90% market preference amid US model restrictions.

China's generative AI user base has doubled to 515 million in the first half of 2025, achieving a 36.5% adoption rate, according to data released by the China Internet Network Information Center (CNNIC) recently.

The government research organization's report, based on a survey of 30,000 respondents across 31 provinces, indicates that the number of users more than doubled between the end of December 2024 and June 2025. This growth positions China as the world's largest AI market by user count, surpassing earlier estimates.

The data reveals a concentration among younger, educated demographics. Users under 40 years old account for 74.6% of the total, while those with higher education degrees represent 37.5 percent. This skew toward younger, professional users mirrors adoption patterns seen in other major technology markets globally.

Domestic platform preference

A significant finding from the report is the overwhelming preference for domestic AI models, with more than 90% of respondents citing Chinese platforms as their first choice. This preference operates within a regulatory environment where leading American models from OpenAI and Google DeepMind remain officially blocked on the mainland.

Chinese platforms including DeepSeek, Alibaba Cloud's Qwen, and ByteDance's Doubao have emerged as the primary alternatives. The popularity of these domestic solutions reflects both user necessity and strategic government policy emphasizing technological self-reliance.

The CNNIC figures align with earlier research from Microsoft, which found in September that China already hosted the world's largest AI market with an estimated 195 million users as of June 2024. Microsoft's methodology measured adoption as the share of the working-age population actively using AI tools.

According to the Microsoft study, the launch of DeepSeek's R1 model in January 2025 served as a catalyst, with Chinese AI adoption more than doubling to 20% in the following six months. By comparison, US adoption remained relatively stable at approximately 25% over the same period.

Beyond user adoption, China has established a significant presence in AI-related intellectual property. The CNNIC report notes that China filed 1.576 million AI-related patent applications as of April 2025, representing 38.58 percent of the global total—the highest share among all countries.

Zhang Xiao, deputy director of CNNIC, told state news agency Xinhua that China expects continued innovation across "open source AI, embodied intelligence, AI agents and AI governance."

Policy framework

The growth trajectory occurs within Beijing's "AI Plus" initiative, which aims to integrate AI technologies broadly across social and economic sectors. The policy framework emphasizes self-reliance throughout the AI technology stack, from foundational models to computing infrastructure.

This strategic approach has created conditions favorable for domestic technology companies to develop competitive offerings while limiting exposure to foreign platforms that might operate under different regulatory frameworks or strategic interests.

The rapid expansion of China's AI user base underscores the emergence of a largely separate AI ecosystem from Western markets. This bifurcation presents both opportunities and challenges for global technology companies seeking to operate across markets with divergent platforms and standards.

For industry players, the data suggests a market where domestic platforms will likely continue to dominate user preferences, potentially creating opportunities for integration, customization, and enterprise deployment services built around Chinese AI technologies.

The sustainability of this growth rate remains to be seen, particularly as the market matures beyond early adopters. However, the combination of government support, large user base, and significant R&D investment suggests China's AI ecosystem will continue to develop along its own trajectory, potentially creating distinct technical standards and use cases from those evolving in Western markets.