In Hangzhou, Zhejiang province, a line of customers waited outside a bustling milk tea shop on a chilly winter day. But unlike traditional orders through smartphone apps or QR codes, patrons were interacting with artificial intelligence. Using voice commands, customers customized their drinks, located the nearest store, and completed payment—all within seconds.
“It was my first ‘AI milk tea’. I’ve used food delivery apps for years, but this was the first time AI picked my drink,” said Qin Xiaomeng, a 25-year-old product manager from Hangzhou.
This seemingly small moment illustrates a broader trend: China is embedding AI into everyday life at scale. Major tech companies—including Alibaba Group, Tencent Holdings, and Baidu Inc—have invested tens of billions of yuan in AI-powered services ranging from personalized drinks to travel bookings.
Scaling AI Across Daily Life
China’s “AI Plus Initiative,” highlighted in the 2026 Government Work Report, seeks to create a new form of smart economy by integrating AI into both consumer and industrial applications. Chen Changsheng, part of the report’s drafting team, said the initiative aims to expand AI’s reach across industries, unlock new growth spaces, and cultivate novel business models.
Bai Chong-En, dean of Tsinghua University’s School of Economics and Management, emphasized that applying AI at scale requires real-world scenarios where these technologies can deliver tangible value. “Creating a new intelligent economy is about integrating AI with societal and industrial needs,” he said.
From Apps to Physical Devices
Beyond apps, AI is increasingly embedded in physical products—from smart appliances and wearables to vehicles. Hangzhou-based startup Rokid has developed AI-powered glasses that translate speech in real time. During a recent demonstration with German Chancellor Friedrich Merz, subtitles appeared instantly in German as he spoke with local staff.
The glasses’ overseas version integrates four major large language models simultaneously—Google Gemini, ChatGPT, DeepSeek, and Alibaba Qwen—allowing users to toggle between models for translation, navigation, messaging, or purchasing.
Global shipments of AI glasses reached 8.7 million units in 2025, up 322 percent year-on-year, with Rokid and Xiaomi ranking second and third globally, according to market research firm Omdia.
Expanding AI Consumption
Analysts note that AI-powered products are reshaping consumer behavior. Economist Lu Ming said AI simplifies digital interactions, lowering the barrier for older users and residents in smaller cities to access online services. During the 2026 Spring Festival, over 4 million users aged 60 and above placed orders via AI systems, according to Alibaba Group.
AI’s ability to execute real-world tasks—rather than merely provide information—has expanded its role from digital assistant to personal productivity tool, driving adoption and stimulating consumption across China.
Enterprise AI and Workplace Integration
AI applications are also transforming workplaces. OpenClaw, nicknamed the “AI lobster,” integrates with major Chinese enterprise platforms such as ByteDance Feishu and Tencent WeCom. Tech founder Zhou Hongyi said it turns cloud software into a personal digital assistant that is easy to operate, bringing AI capabilities previously restricted to tech giants to everyday office users.
Efficient and lightweight models like AI lobster demonstrate China’s approach differs from the U.S., where AI development often prioritizes extremely large, resource-intensive models.
Global Reach of Chinese AI
China is also exporting AI expertise. Open-source models developed domestically accounted for 17.1 percent of global downloads last year, surpassing the U.S. for the first time, according to a joint report by MIT and Hugging Face. Models like DeepSeek V3 and Moonshot AI’s Kimi K2 now make up nearly 30 percent of global open-source LLM usage.
Chinese firms are deploying AI solutions internationally, from Africa to the Middle East and Southeast Asia. Companies such as Huawei and ZTE provide AI-enabled infrastructure, industrial inspection, and predictive maintenance solutions, while startups and industrial hubs in Africa leverage open-source models to create AI-driven services without high licensing costs.
Consultancy PwC estimates AI could contribute $7 trillion to China’s GDP by 2030, while CCID Consulting projects the AI industry will grow from 398.5 billion yuan in 2025 to more than 1.7 trillion yuan by 2035.
From Daily Life to Industry
Chinese experts emphasize that the broader goal is systemic integration: embedding AI into consumer products, workplaces, and industrial chains to improve efficiency, create commercial value, and enhance social resilience. “AI is not just about technology breakthroughs; it’s about scaling real-world applications and raising living standards globally,” said Wei Kai of the China Academy of Information and Communications Technology.
Whether it is a cup of AI milk tea, smart glasses, or industrial inspection tools, China’s AI ecosystem demonstrates how the country is pioneering a smart economy that spans daily life, industry, and global markets.