Most Chinese AI Apps Losing Users Despite 700 Million Strong Market: China’s artificial intelligence mobile apps are attracting hundreds of millions of users, but a new report shows that most are actually struggling to keep them. According to research firm QuestMobile, while the overall user base is growing, many smaller apps are losing ground as competition in the AI space heats up.
AI apps hit 729 million users, but growth isn’t helping everyone
In September, AI mobile apps in China – including both AI-native apps and those with built-in AI features – had a combined 729 million monthly active users. That’s up from 680 million in June, based on previous QuestMobile data.
Out of that total, 287 million users were on AI-native apps, which are built entirely around artificial intelligence, like DeepSeek’s chatbot. Another 706 million users were on apps that offer AI-powered features within their platforms.
Fierce competition squeezes smaller developers
Despite the massive reach of AI technology in China, nearly 60 percent of AI-native apps lost users in the third quarter, according to the report.
“For new entrants or small and medium apps, the window of building a successful AI-native app is narrowing,” the report said. “Developers need to go deeper in verticals.”
The report highlights a major challenge for smaller AI startups trying to survive in a market increasingly dominated by tech giants.
Big names lead the AI race
ByteDance’s Doubao chatbot led the AI-native app market in September with 172 million monthly active users, followed by DeepSeek’s chatbot with 145 million users. DeepSeek’s numbers fell slightly by 1.7 percent compared to July, while Doubao grew 8 percent, overtaking its rival. Together, these two apps remain far ahead of competitors.
Tencent’s AI chatbot Yuanbao ranked third with around 33 million users. Meanwhile, healthcare AI app AQ, which offers doctor recommendations and medical report analysis, made a big leap to seventh place with 7.9 million users – an 83 percent increase since the end of the second quarter. AQ was launched in June by Ant Group, a fintech company affiliated with Alibaba Group Holding.
AI search takes center stage
When it comes to in-app AI integrations, search tools are the most popular feature among Chinese users. Baidu’s AI search function led this category with 347 million monthly active users, followed by ByteDance’s Douyin (China’s version of TikTok) with 215 million users and Tencent’s WeChat with 166 million.
A fast-growing but crowded field
China’s AI app market continues to expand at an impressive rate, but the fierce competition is making it harder for smaller players to survive. As major developers like Baidu, ByteDance, and Tencent push out constant updates and new features, it’s becoming clear that only the strongest and most innovative apps will thrive in the long run.
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