China’s overlooked internet army is quietly embedding AI into everyday businesses

While Chinese AI titans like DeepSeek and Z.ai have garnered global attention, a network of lesser-known domestic firms is quietly weaving artificial intelligence into the fabric of everyday business. Consumer-facing giants - e-commerce behemoths, video game developers, social media outlets, and travel platforms - are constructing AI models custom-built for their unique operations, a trend that has largely escaped the limelight.

RedNote, often hailed as China's equivalent of Instagram, exemplified this shift this month. Its AI arm, Dots Studio, unveiled Dots3-Note Preview, a 280-billion parameter open-weight model, boasting performance on par with or surpassing AI labs from the United States and domestic counterparts such as DeepSeek and Z.ai. This release underscores the burgeoning emphasis on tailor-made AI for RedNote, initially recognized for its fashion, travel, and shopping recommendations.

Industry experts say this marks a broader transformation within China's technology landscape, as digital platforms are increasingly opting to develop their own AI systems rather than depend on external providers. "When non-AI companies invest in AI, it is primarily because AI has become critical to their business," explained Su Lian Jye, a chief analyst at Omdia, an industry research firm.

"These platforms are digital natives with vast amounts of data at their disposal. By combining proprietary business data with bespoke AI models, companies can streamline operations, anticipate demand, personalize services, and tap into new revenue avenues." Other Chinese heavyweights are pursuing similar strategies. Meituan, a titan in food delivery and local services, has poured resources into its LongCat model series, integrating AI into merchant services, logistics, customer support, and recommendations.

Trip.com, China's leading online travel agency, crafted Wendao, an AI system tailored for itinerary planning, customer service, and travel suggestions. Meanwhile, video streaming platform Bilibili and gaming pioneer miHoYo have harnessed AI to bolster content creation, interactive digital experiences, and game character interaction.

Bilibili developed the Index family of language models, including IndexTTS, a multilingual speech synthesis system, which has found applications in AI subtitles, translation, video production, and voice generation. miHoYo's Glossa, an in-house generative AI model, aims to make game characters more dynamic, with reported usage in AI features for its popular role-playing game, Honkai: Star Rail.

While the development and scaling of proprietary AI infrastructure pose significant operational challenges, including data limitations, regulatory hurdles, talent shortages, and integration complexities, the long-term benefits are considered highly promising by Omdia's Su.