Generative AI usage in China has seen a dramatic increase, with user numbers surging to 602 million by December, up 141.7 percent from the end of 2024. This widespread adoption reflects AI's rapid integration into daily life and various production sectors.

• The adoption rate of generative AI now exceeds 42 percent, a year-on-year rise of 25.2 percentage points.
• The report, released by the China Internet Network Information Center’s policy and international cooperation division, highlights AI as a key driver for digital and intelligent transformation.
• AI is significantly benefiting small and medium-sized enterprises (SMEs), addressing challenges like high costs and low efficiency; for example, one new energy company reduced its battery production line defect rate from 0.3 percent to 0.05 percent using industrial vision quality inspection models.