Chinese video game companies are increasing their use of AI to improve games and seek new business opportunities, according to executives at ChinaJoy, the country’s largest digital entertainment expo held recently in Shanghai.

The event attracted many AI firms looking to partner with local studios adopting AI-driven technologies.

Huawei, the Shenzhen-based tech company, promoted its HarmonyOS operating system at the expo, which the company says is being used by over 6,500 games.

Huawei also highlighted its AI agent Xiaoyi, known as Celia, which can block calls and messages and answer player questions during gaming sessions.

China’s video gaming market reached 168 billion yuan (US$23.4 billion) in sales in the first half of 2024, a 14% increase from the previous year, according to the Gaming Publishing Committee of the China Audio-Video and Digital Publishing Association.

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🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s gaming boom reflects broader AI-driven market transformation

China’s 14% gaming market growth to 168 billion yuan ($23.4 billion) in the first half of 2025 significantly outpaces the global gaming industry’s typical expansion patterns1.

This acceleration coincides with the global gaming market’s projected growth from £372 billion to £541 billion by 2029, driven primarily by AI integration across development and gameplay2.

The rapid adoption of AI technologies in Chinese gaming comes despite ongoing U.S. semiconductor export restrictions, demonstrating how Chinese companies have adapted by stockpiling chips and developing alternative AI solutions3.

China’s gaming market growth rate jumped from just 2% in the previous year to 14% in 2025, suggesting that AI adoption is creating measurable economic impact rather than just technological novelty1.

The presence of over 6,500 games on Huawei’s HarmonyOS platform shows how Chinese companies are building comprehensive ecosystems that integrate AI capabilities at the operating system level, potentially giving them advantages in AI-enhanced gaming experiences1.

2️⃣ Gaming AI evolves from basic automation to intelligent assistance

The AI applications showcased at ChinaJoy represent a significant evolution from traditional gaming AI, which has historically relied on simple “if-then” scenarios and pathfinding algorithms that lack true learning capabilities4.

Huawei’s AI agent Xiaoyi demonstrates how modern gaming AI moves beyond controlling non-player characters to actively managing the player’s entire digital environment, including blocking calls and answering questions in real-time1.

This shift reflects the gaming industry’s broader transformation, where AI is projected to become critical infrastructure worth $314 billion by 2026, moving from background automation to visible player-facing features5.

The current wave of AI integration focuses on enhancing user experience and reducing development costs through automated content generation and intelligent behavior systems, rather than replacing human players with AI opponents5.

Unlike the narrow AI that has powered gaming for decades, these new applications use machine learning to adapt to player behavior, creating more personalized and responsive gaming experiences that can evolve based on individual user patterns6.

Recent Huawei developments

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