The Policy and International Cooperation Department of the China Internet Network Information Center unveiled the “Report on the Development of Generative AI Applications (2026)” at the “2026 (7th) China Internet Infrastructure Resources Conference”. According to the report, as of the first half of 2026, China’s generative AI user base has surpassed 700 million, achieving a penetration rate of over 50%. The application scenarios for generative AI are becoming increasingly diverse, and the potential for intelligent consumption is growing rapidly. Intelligent Q&A remains the primary application scenario, while life assistants and intelligent office solutions have witnessed significant growth. Intelligent consumption is driving new demand, with nearly 40% of internet users having purchased intelligent hardware devices. China is stepping up its efforts in independent AI innovation, bolstering its computational infrastructure, enhancing model capabilities, and increasing data supply. The transformative impact of generative AI on industries such as manufacturing, agriculture, services, and scientific research is becoming more pronounced, with embodied AI emerging as one of the most vibrant areas of development. China has cultivated a globally leading AI industry ecosystem, marked by comprehensive policy support, full-stack technological advancements, and concurrent improvements in both the volume and quality of financing.