More than 700 million people in China were using generative artificial intelligence by the first half of 2026. That is over half the country's population. As AI becomes part of work and daily life, authorities are facing new worries about jobs, emotional dependence on chatbots and mistakes caused by trusting AI too much.
The figure comes from a report released on September 29, 2026 by the China Internet Network Information Center (CNNIC). At the end of 2025, the country had 602 million users, so the number grew by roughly 16 percent in six months.
The report shows AI is now an everyday tool. About 76 percent of users ask it questions. About 47.8 percent use it for images and video, and 37.6 percent for text. Another 32.5 percent use it for work summaries, meeting notes and presentations. By June 2026, more than 30 percent of large manufacturers had also adopted AI.
The spread is partly planned. China's State Council has an "AI Plus" strategy that pushes AI into industry, education, healthcare and public services. It aims for new smart devices and AI agents to reach more than 70 percent penetration by 2027 and 90 percent by 2030.
The effect on work is mixed. A study by the International Labour Organization and Renmin University surveyed 1,591 professionals and interviewed 21 companies. About 47 percent of professionals said AI creates more jobs than it removes. But 39 percent expect it to cut their income.
Ekkehard Ernst, an ILO researcher on the study, said, "Chinese firms are not replacing workers with AI so much as reorganising work around hybrid human–AI workflows." The ILO noted that the companies were hand-picked and their productivity figures were not independently checked, so the results cannot be applied to all firms.
Some companies are reportedly cutting staff quietly or hiring fewer graduates as they bring in AI tools. One technology worker said, "I still can't shake the feeling that I'm getting closer to being replaced." One bank estimate says about 9.6 percent of Chinese jobs, around 70 million, are at high risk. That is an estimate of risk, not a count of jobs lost.
Rules on AI "companion" services took effect on July 15, 2026. Providers must deal with excessive dependence, extreme emotional situations and long hours of use. They cannot offer children virtual relatives or virtual romantic partners.
When AI gets it wrong: Media reports describe an Anhui farmer, 67, who followed an AI pesticide suggestion and lost about 150 mu of sesame, roughly 10.1 hectares. His reported loss was about 150,000 yuan. The case has led to calls for better AI literacy and for people not to treat general AI answers as expert advice.
AI-made entertainment: AI is also changing culture. China released 430,000 micro-dramas in the first eight months of 2026, which is 13 times the total for all of 2025. More than 90 percent were made with AI. Regulators have raised concerns about quality and rights, and say 68,000 problem micro-dramas have been removed this year.
On September 10, 2026, the Supreme People's Court issued its first guidelines on AI disputes. They cover face-swapping, voice cloning, doxing and the use of a person's name and likeness.
The picture is not one of widespread fear. A separate survey of more than 1,000 people in China found that most are positive about AI, and fewer than 10 percent worried it would make finding a job harder.
China is not slowing down. It is adding safeguards as AI use grows, and its experience may offer lessons for other countries, including Nepal, as AI use spreads there.
