Why China is seriously cultivating AI entertainment

Hugh Harsono writes regularly for multiple publications about cyberspace, economics, foreign affairs and technology.China’s Artificial Intelligence ambitions tend to be depicted in the news as predominantly related to defence, large language models and semiconductors. But one emerging use case for AI revolves around a market projected to grow to US$441 billion by 2035: China’s entertainment market.Just last week, Chinese regulators announced policies encouraging cinemas to reinvent themselves with AI-powered experiences. Simultaneously, Chinese content creators have embraced AI to hasten content ideation, creation and development. Together, these developments point to a strong projection of growth for AI in Chinese entertainment. Chinese policymakers appear to be positioning AI and its entertainment nexus as the foundation for a new cultural economy.China-film-administration" class="entity-link entity-organization" data-entity-id="164633" data-entity-type="organization">China Film Administration (CFA) and the State Administration for Market Regulation (SAMR) have jointly issued guidelines encouraging cinemas to diversify beyond film screenings, specifically supporting the introduction of AI agents to create hubs for “trendy cultural consumption”. This policy aims to move the industry from a traditional ticket-sales model to an all-inclusive, AI-driven consumer experience encompassing retail, gaming, karaoke and more.