Domestic Video AI Technology Industry Chain Gradually Matures as China's AI Industry Develops Rapidly

[baoshi.rao]

Domestic Video AI Technology Industry Chain Gradually Matures
With the rapid development of the internet, the era of video has arrived. Statistics show that video content now accounts for up to 82% of internet traffic and continues to grow.

Recently, AI-powered face-swapping technology has enabled characters in domestic films and TV shows to speak English lines, while mini-programs allow users to transform themselves into movie characters.

The rise of mini-program micro-dramas and AI-powered "lip-sync" translations has created new hits. Following AI-generated covers (e.g., AI Sun Yanzi), AI-generated images (e.g., AI cameras), AI Guo Degang (video translation) has gone viral, turning cutting-edge AI technology into real-world successes that align with the popularity of UGC content and micro-dramas on short video platforms.

Combined with the revenue-sharing business model of micro-dramas and their highly entertaining nature, AI technology is expected to further revolutionize creator tools, leading to more high-quality content and replicating the revenue growth seen in overseas AI platforms.

In 2023, with the integration of large AI models and multimodal AI technologies, the creative, general-purpose, and industrial capabilities of AI-generated content have rapidly improved. AI applications in film and TV production have entered a new phase, spanning content planning, development, production, and promotion.

For film production companies and long-video platforms, AI is deeply embedded in content creation and video operations. More creators are exploring "human + AI" approaches, especially in animated films. According to a representative from Enlight Media, "AI could improve efficiency in key animation production processes by 50% and reduce overall production cycles by 30%."

Compared to professional film production, AI applications in short videos have lower barriers. Even before the rise of generative AI, tools like Douyin's video editor "Jianying" already offered features like AI image-to-video conversion.

China's AI industry is thriving, with core revenues reaching 500 billion yuan and over 4,300 companies. As regulations are introduced, the industry is expected to develop more healthily, benefiting work and life in multiple ways.

AI is a double-edged sword. While technologies like face-swapping and voice synthesis enhance efficiency—such as reviving deceased actors or enabling real-time language translation—they are also misused for fraud, such as impersonation or fake news.

Professor Zuo Xiaodong from the University of Science and Technology of China notes that generative AI is still in its early stages, with risks not fully exposed. A balanced approach—promoting innovation while ensuring security and governance—is essential.

As AI matures, its governance challenges cannot be ignored. Policies and regulations are being introduced to define boundaries and ensure responsible use, with industry standards and platform rules continuously evolving. Legal frameworks for AI are also being refined.

In December 2022, the Cyberspace Administration of China (CAC), the Ministry of Industry and Information Technology (MIIT), and the Ministry of Public Security jointly issued the Regulations on the Administration of Deep Synthesis Internet Information Services. These regulations, framed within the Cybersecurity Law and Personal Information Protection Law, introduced specialized and specific requirements for internet information services utilizing deep synthesis technology.

In April 2023, the Technical Requirements for Preventing Deepfake in Radio, Television, and Online Audiovisual Content (2022 Edition), drafted by the National Radio and Television Administration's key laboratory for AI applications, was publicly released. This document focuses on deepfake detection, facial recognition, blacklisting, and deepfake prevention capability assessments, providing guidance for content review and publishing processes in broadcasting and online audiovisual sectors.

In July 2023, the CAC, alongside the National Development and Reform Commission, Ministry of Education, Ministry of Science and Technology, MIIT, Ministry of Public Security, and National Radio and Television Administration, announced the Interim Measures for the Management of Generative Artificial Intelligence Services (hereinafter referred to as the Measures), effective from August 15, 2023. This marks China's first comprehensive regulatory framework for generative AI development and services. The Measures emphasize balancing development with security, fostering innovation alongside lawful governance, and implementing inclusive yet prudent, categorized, and tiered supervision of generative AI services.

On August 15 this year, the Interim Measures for the Management of Generative Artificial Intelligence Services officially took effect. The Measures stipulate that the provision and use of generative AI services must respect others' lawful rights, avoid harming physical and mental health, and refrain from infringing on portrait rights, reputation, honor, privacy, and personal information.

Compared to traditional manual production methods, video AI technology significantly reduces labor and time costs, highlighting its role in enhancing efficiency. With the maturation of related industries, 4K ultra-high-definition has become ubiquitous in entertainment and commercial production. The video AI sector is transitioning from HD to UHD, driving upgrades across the electronics supply chain—from chips and display panels to video production equipment, storage, network transmission, and end-user devices—while propelling industry-wide advancements.

The emergence of ChatGPT has reignited excitement around AI. Both ChatGPT and Midjourney demonstrate AI's pivotal role in driving the latest wave of technological and industrial transformation. In September 2023, OpenAI announced multimodal capabilities for ChatGPT, enabling it to see, hear, and speak beyond text interactions. Rapid technological progress has accelerated product deployment, with AI-powered text interactions spawning hit games and AI dubbing—combining voice generation and translation—gaining traction on short-video platforms. The rise of mini-program games and micro-dramas further signals new growth drivers in media.

The application and development trends of AI in video technology can be summarized as follows:

1. Video content analysis and classification: AI analyzes and categorizes videos by identifying people, scenes, and objects, extracting key elements to enable automated tagging and organization.

2. Intelligent video editing: AI assists in editing by selecting optimal shots, adjusting pacing and audio levels, streamlining high-quality video production.

3. Video search and recommendation: AI enhances user experience by recommending content based on preferences, boosting engagement and visibility.

4. Live streaming and real-time transcoding: AI optimizes video quality through compression and acceleration, ensuring real-time performance.

Additionally, AI-powered video surveillance has become a critical application in security, enabling automated object recognition, tracking, and alerts. Widely adopted in public safety, smart transportation, and industrial manufacturing, this technology processes surveillance footage to deliver actionable insights.