Blueprint to Action Chinas Path to AI-Powered Industry Transformation 2025

Retail Fuelled by an extensive internet user base and the influence of commercial giants like Alibaba, JD and ByteDance, China’s New Retail model involves integrating AI deeply into online and offline shopping to enhance customer engagement and personalization. The country’s commercial giants utilize traditional AI for operational efficiencies, such as supply-chain automation and demand forecasting, while using genAI for dynamic, consumer-facing innovations, such as personalized shopping recommendations and virtual assistants. The power of genAI and other forms of AI allows Chinese retailers to improve customer engagement, address operational challenges and adapt swiftly to China’s highly competitive retail market. In fact, surveys show that over half of the merchants that trade on China’s main e-commerce platforms have already used at least one genAI- enabled tool.41 Selected scenarios and solutions in retail TABLE 3 Application Solutions in China Hyper-personalized engagement –55% of companies in China claim that genAI has impacted their customer strategy by automating some parts of customer service.42 –GenAI can gather and analyse customer feedback from reviews and social media, allowing retailers to refine products based on consumer input. –GenAI can provide personalized content and recommendations by integrating customer data and can predict customer needs with high levels of accuracy. Virtual live host –AI-powered hosts can operate 24/7 and effectively mimic human expressions and interactions. Supply chain/ logistics operations –Routes can be optimized for delivery fleets, inventory management and forecasting demand accurately, ensuring timely and efficient distribution of goods. –A 3D visualization solution can generate warehouse layouts using natural language instead of computer code. Livestreams with product promotions are becoming a prevalent form of retailing in China. However, the cost of a livestream can be substantial. E-commerce leader JD has advanced the application of digital human technology, focusing on key areas such as digital human creation, natural language processing and text- to-speech capabilities. These developments have enabled more lifelike appearances, voices and interaction styles.43USE CASE 4 JD’s Digital Human – e-commerce with AI-driven livestream Sportswear company ANTA uses AI-generated content (AIGC) technology to transform its marketing and retail strategies. For example, ANTA places a strong emphasis on shopping-guide operations; by utilizing algorithm-recommended product combinations, the company aims to enhance its sales success rate. ANTA also uses AIGC during digital human live streaming to enhance customer engagement. In 2023, ANTA was recognized for its innovations when Tencent named the sportswear firm in its Top 10 in Smart Retail Digital Operations list.44USE CASE 5 ANTA – retail with AI-generated content and smart marketing Blueprint to Action: China’s Path to AI-Powered Industry Transformation 19