ChinaJoy 2025: Tech Giants and Startups Use AI to Power Gaming Growth

The Rise of AI in Chinese Video Gaming

Chinese video gaming companies are increasingly leveraging artificial intelligence to enhance their game titles and explore new growth opportunities. This shift is being driven by rapid advancements in AI models, as highlighted by executives at ChinaJoy, the country's largest annual digital entertainment expo.

The four-day event in Shanghai attracted a significant number of AI companies eager to form or strengthen partnerships with local studios that are adopting AI-driven technologies. Among the notable participants was Huawei Technologies, a telecommunications equipment giant based in Shenzhen. The company took center stage with a large booth showcasing its HarmonyOS operating system, an Android alternative gaining popularity among Chinese game developers.

HarmonyOS has already seen over 6,500 games launched on its platform, including popular titles such as Anipop and Subway Surfers. Huawei also introduced its AI agent, Xiaoyi (also known as Celia), which enhances the mobile gaming experience by blocking calls and messages and answering player questions in real time.

In the first half of this year, sales in China’s video gaming market increased by 14 percent compared to the previous year, reaching a record high of 168 billion yuan (US$23.4 billion). This growth rate outpaced the 2 percent increase seen during the same period last year, fueled by increased government support and the industry's accelerated adoption of AI technologies, according to a report from the Gaming Publishing Committee of the China Audio-Video and Digital Publishing Association.

"There are a lot more things AI can do in video games compared with several years ago," said Jeff Zou, vice-president of US-based GameBot. The start-up, founded by AI scientists from Tencent Holdings, collaborates with the Chinese tech giant and other major developers, as well as smaller studios, to create in-game bots and AI non-player characters.

"Large companies are adopting more AI technologies like large language models (LLMs) and reinforcement learning on their game agents," Zou added. He noted that the rapid progress in LLMs has enabled bots to conduct multi-round conversations with players, enhancing the overall gaming experience.

Vast, a start-up specializing in AI-generated three-dimensional technology, showcased its Tripo AI platform, which has been used to build major titles, including NetEase's action-adventure role-playing game Where Winds Meet. Launched in December, the game is marketed as a home-grown "triple-A" title.

The competition in 3D-generation models is intensifying. Last month, Tencent unveiled its Hunyuan 3D World Model 1.0, an open-source AI model designed to produce intricate three-dimensional environments.

At the event, Chinese gaming companies—from industry giants like Tencent and NetEase to smaller studios like 37Games—highlighted their efforts in integrating AI into their businesses. Yu Ruichao, vice-president at Tencent's video gaming division, said the company made strides in incorporating AI into game production, as well as expanding its applications from back-end processes to enhancing the front-end user experience.

Key Innovations and Collaborations

Several key innovations and collaborations were evident at the event:

• Huawei's HarmonyOS continues to gain traction among game developers, offering a robust platform for mobile gaming.
• GameBot is working with major developers and smaller studios to create advanced in-game bots and AI non-player characters.
• Vast's Tripo AI platform is being used to develop major titles, demonstrating the growing influence of AI in game design.
• Tencent's Hunyuan 3D World Model 1.0 represents a significant step forward in AI-driven 3D environment creation.

As the gaming industry continues to evolve, the integration of AI is becoming increasingly vital. From enhancing player engagement to streamlining development processes, AI is reshaping the landscape of video gaming in China and beyond.