China's live streaming e-commerce evolves as AI reshapes the market

The live-streaming e-commerce sector in China is transitioning from rapid expansion to a more mature phase, with annual transaction value nearing 7 trillion yuan. Reuters reported that online retail sales accounted for over 36% of total retail sales in 2025. AI is driving significant changes, with platforms like JD.com offering free AI anchor services since December 2025, reducing live-streaming costs by 80-90% within three months. Douyin has also implemented rules to label AI-generated content and ban fully AI-driven streams. Industry leaders, including Li Jiaqi and Lu Lin, argue that AI cannot replace real hosts, who provide unique insights and trust-building. Ashley Duda-renok of Chozan highlights the irreplaceable value of real hosts in fostering authenticity. The future of live-streaming e-commerce is expected to involve AI handling efficiency and cost-cutting, while real people focus on trust-building.