Chinese entertainment companies including Kuaishou, ByteDance, and MiniMax are increasingly turning to AI-generated video as a cost-effective alternative to traditional production methods, deploying tools such as Kling, Hailuo, and Sora for advertising, e-commerce, and live-streaming applications.

What Happened

Multiple studios and content platforms in China have begun integrating AI video generation tools into their production pipelines. Kuaishou's Kling model, MiniMax's Hailuo platform, and OpenAI's Sora are among the systems being deployed to generate video content featuring virtual avatars or synthetic performers without hiring human talent. Industry analysts tracking the sector note that some livestream operations have also started experimenting with AI-generated hosts as a way to reduce operational costs.

Why It Matters

The development signals how quickly generative AI tools are moving from research demonstrations into commercial deployment in China's entertainment sector, raising concerns about labor displacement among actors, performers, and production staff. For developers building video generation models, the Chinese market represents an early indicator of enterprise demand and pricing pressure as studios seek alternatives to traditional hiring. The shift also intensifies questions about whether regulatory frameworks can keep pace with the technology's deployment—China's Cyberspace Administration has issued draft guidelines on synthetic media that require clear labeling of AI-generated content, though enforcement remains inconsistent. Labor advocates point to potential wage impacts for mid-tier performers and extras who rely on commercial work.

The Bottom Line

AI-generated video is no longer confined to research labs or experimental projects. As production costs decline, studios and platforms are making business decisions that favor synthetic content over traditional hiring in certain use cases—a trend likely to intensify as model capabilities improve.