China eyes next TikTok boom as firms boost video production with AI

Analysts say AI video tools could transform content creation by boosting efficiency and making production more accessible

China’s entertainment industry, which heavily relies on video content, is developing artificial intelligence tools aimed at creating advertisements and short film clips for profit, according to a report by CNBC.

 

Wei Xiong, a China internet analyst at UBS Securities, reportedly said that competition in AI video generation models was still at an early stage, and that some Chinese companies had already emerged as early leaders in the field.

 

What’s the latest

 

ByteDance, the parent company of TikTok, holds the first and third positions in the text-to-video generative AI model rankings by research firm Artificial Analysis. Google takes the second and fourth spots, while Kling AI, developed by Beijing-based short video app Kuaishou, ranks fifth.

 

 

These AI tools allow users to upload one or several images and instruct the system to produce a video clip based on them. Some tools can also create videos directly from text input.

 

Kling AI is already being used by more than 20,000 businesses, ranging from advertisers to film animators, the company said.

 

Kling AI claimed that its latest version, Kling 2.1, can automatically add sound effects that match the generated video.

 

What it means

 

Analysts cited in the report believe that AI video generation has the potential to reshape the content industry by

 

- Enhancing production efficiency

- Lowering barriers to creation

- Unlocking new monetization models

 

These tools give users the ability to generate videos either from images or written prompts, making content creation faster and more accessible.

 

What’s next

 

Chinese tech company Alibaba has launched Wan2.2, the newest version of its video generation AI model. The company said the open-source model gives users control over elements such as lighting, colour tone, camera angle, frame size,  and focal length.

 

Zeng Yushen, head of operations at Kling AI, told CNBC that the firm plans to improve its support in international markets including Japan, South Korea, and Europe.

 

Chinese video AI firms are also competing with companies from the US. This competition comes in addition to the restrictions imposed by the Trump administration. These restrictions limit China’s access to high-end semiconductors that are essential for training AI models.

 

However, it must be noted that Chinese companies often adopt AI faster due to intense market competition and also benefit from a strong pool of skilled local software engineers.