Kuaishou "Generates" New Business

"The future competition is no longer between enterprises, but between ecosystems." When James F. Moore wrote The Death of Competition at the end of the last century, he could never have imagined that the judgment he made based on the wave of globalization would be re - verified today when generative AI has deeply penetrated the business world.

The emergence of intelligent technologies has shifted from a surging tsunami to a turbulent undercurrent, and the future business paradigm has taken shape. At the recently held 2025 Kuaishou Magnet Conference, Kuaishou presented its thoughts on "How AI is reshaping the business operation landscape".

Since Kuaishou fully launched its AI strategy in 2023, it has made rapid progress in implementing AI. This time, at the conference themed "Generating New Business", it is promoting the practice of generative AI in the commercial field, transforming from a tool to a system, and from single - point empowerment to overall reconstruction.

AI Implementation: From Tool Empowerment to Business Reconstruction

"AI is starting to change the world."

Breakthroughs in technologies such as generative AI and large language models have enabled AI applications to move from research to practical use, leading to explosive growth. However, the large - scale implementation of AI applications does not mean that everyone has achieved a fundamental evolution. Following the trend blindly cannot alleviate the anxiety about the unknown. Judging from the information released at the Magnet Conference, Kuaishou's AI layout is no longer limited to single - point breakthroughs but has moved towards the overall reconstruction of the entire business chain.

Wang Jianwei, Senior Vice President of Kuaishou, Head of the E - commerce Division and Head of the Commercialization Division

Wang Jianwei, Senior Vice President of Kuaishou, Head of the E - commerce Division and Head of the Commercialization Division, shared that based on the prosperous content and business ecosystems of the platform and the comprehensive layout of AI capabilities, Kuaishou can comprehensively reshape the business marketing field in aspects such as AIGC content production, advertising agents, large marketing recommendation models, and large bid - reasoning models.

Overall, Kuaishou's AI ecosystem layout can be dissected from three dimensions: technical support, product application, and business value.

In terms of technical support, while the industry generally focuses on the competition of a single general large model, Kuaishou has chosen a differentiated technical path - building a cluster of vertical domain models around business elements.

The combination of three generative models, namely Kuaiyi (language), Ketu (image), and Keling (video), with decision - making models such as marketing recommendation and bid - reasoning, essentially reconstructs the business closed - loop of "content production - demand insight - transaction decision". Recently, the integration of DeepSeek into products such as Kuaishou Magnet Innovation is to strengthen the decision - making link by introducing external cognitive intelligence, rather than making up for technical deficiencies.

The cross - domain enhancement generated by the collaboration of these multi - modal models is breaking through the information cocoon of traditional recommendation systems. Combined with technologies such as "thinking chain decision - making learning", Kuaishou's large marketing model can break down complex problems like humans: from analyzing users' behavior of watching camping videos to inferring their potential needs for outdoor power supplies, folding tables and chairs; from identifying the material and price characteristics of products to predicting "who the next purchaser will be" - truly achieving a certain sense of "generative matching".

From the perspective of AI product applications, Kuaishou already has a complete matrix of product solutions, forming a well - meshed gear with business scenarios.

According to the latest financial report data, in Q4 2024, the daily average consumption of Kuaishou's AIGC short - video marketing materials and virtual digital human live - streaming solutions exceeded 30 million. For the former, AIGC technology has industrialized creative production, achieving standardized control of content quality and efficiency; for the latter, it has quantified user interaction and product introduction into data elements, realizing 24/7 exclusive services. The emergence of AIGC content production products has eliminated the pain points of traditional content production, such as relying on manual creativity, requiring real people to appear in live - streaming, high costs, and low standardization, and has also lowered the threshold for merchants' operations.

On the marketing and advertising side, Kuaishou's AI advertising agents are no longer passive tools but have become decision - making entities. The fully automatic advertising system (UAX) has compressed the decision - making process, which originally required complex experience and comprehensive processing capabilities, into a standardized process, realizing full - process automation of "material understanding - cold start - stable investment - breaking through the circle", and increasing the success rate of advertising cold start by 25%. The Kuaishou full - site promotion product focusing on e - commerce operations has been upgraded to version 4.0. Data shows that the full - site promotion agent has driven more than 60% of organic GMV growth for advertising merchants.

From the perspective of business value, Kuaishou has fundamentally changed the platform's commercialization path. On the one hand, the emergence of "generative matching" has changed the trial - and - error logic of traditional marketing A/B testing to simulation and deduction. By constructing a digital twin of users - products - scenarios, advertising placement is no longer a probability game but an accurate deduction based on virtual market simulation.

On the other hand, the operating rules of the platform's commercialization ecosystem have shifted from traffic distribution under platform sovereignty to real - time allocation under machine decision - making. This marks that in the underlying game rules of business operations, a new role of artificial intelligence has been added to the game between people.

Scenario Penetration: AI Stimulates Incremental Release

The social application of technology must achieve value transformation through specific scenarios. For a specific business entity, it is necessary to embed technology into the "complementary assets" of the ecosystem, so as to achieve the reconstruction from the technology to the commercialization link and then to the overall business system.

The problem that Kuaishou faces next is how to embed its comprehensively reconstructed business operation link into the complex business ecosystem after achieving it through technical support, product implementation, and value design.

Kuaishou's problem - solving approach can be traced.

A landmark event in the change of Kuaishou's business ecosystem is the rise of live - streaming e - commerce, followed by the gradual maturity of the matching e - commerce marketing ecosystem. Whether it is shelf - style e - commerce or live - streaming e - commerce, whether it is users looking for products or products looking for users, the core of e - commerce marketing still focuses on how to accurately match needs and more efficiently allocate traffic.

Now, the application of AI has taken Kuaishou's e - commerce operations a step further. At the Magnet Conference, Kuaishou announced its attempt to introduce DeepSeek intelligent applications into e - commerce marketing, using technology to transform user behavior data into an interpretable consumption intention map, moving demand prediction from statistical correlation to causal reasoning.

Products are no longer just cold account, plan, and material IDs in an advertising plan but specific information that can be understood by AI. For example, for a video material of a sweater, specific content such as product scenarios, audio content, and product advantages will be extracted, and finally a summary such as "affordable price, suitable for autumn and winter leisure scenarios" will be given.

Users, who were artificially divided into groups by payment ability, category preferences, age, and gender in the traditional era, will be understood in a more human - centered way, taking into account user identity and price preferences comprehensively. For example, for a consumer who has already purchased a dinner plate, traditional follow - up advertising would focus more on products in the same category, while AI will recommend strongly related products such as chopsticks and dish soap that better meet the predicted needs.

Two sets of data were also announced at the Magnet Conference, proving that both the supply and demand sides of Kuaishou's e - commerce have grown, and incremental value has been continuously released. In 2024, the number of monthly active merchants on Kuaishou increased by 25% year - on - year, the GMV of small and medium - sized merchants increased by 156% year - on - year, and the number of monthly active e - commerce buyers reached 143 million. Moreover, the data of the general shelf field is also very impressive. In 2024, the transaction volume of Kuaishou's e - commerce general shelf field increased by 61.3% year - on - year, the average daily number of buyers increased by 65.7%, and the average daily number of merchants increased by 119%.

In addition to mature businesses such as e - commerce, content consumption businesses represented by short dramas, mini - games, and novels are becoming new growth poles in Kuaishou's business ecosystem. Compared with physical products, the creation of content products is itself a business operation, and advertising is the content itself. Based on its successful exploration in the short - drama industry, Kuaishou has established a monetization path for the content industry based on the Native original link. In Q4 2024, Kuaishou's content consumption industry grew rapidly, with the commercial consumption of short dramas increasing by more than 300% year - on - year. As of now, the peak daily consumption of short dramas has exceeded 30 million, and the peak daily consumption of mini - games has exceeded 12 million. With the support of large - model technology, content products with almost zero marginal cost may be able to perfectly undertake the exploration of IAA, IAP, and more diversified monetization models, finding the optimal balance between user acceptance and brand costs.

Moreover, in brand marketing, many brands have achieved marketing leaps by leveraging Kuaishou's unique content such as local culture, mass sports, and short dramas. Keling AI has also begun to be increasingly applied in Kuaishou's commercial brand marketing field. In Kuaishou's local - life field, which has been performing well in recent years, Kuaishou's business private messages have achieved "relationship chain reconstruction" through AI. The intelligent customer service π based on the DeepSeek large model has the ability to interact instantly and deeply convert private messages, resulting in a more than 10% increase in users with business intentions in the local lead industry and an 11% reduction in the conversion cost of the lead market.

It can be seen that the implementation of AI in Kuaishou is not for the sake of AI itself but a highly - coupled and orderly embedding. Whether it is an efficiency - enhancing tool or a large - model framework, they are all contributing to the platform's business operations. The results of Kuaishou's exploration also prove the correctness of this move. According to the latest financial report data, Kuaishou's commercialization performance reached 72.4 billion, exceeding 20 billion in a single quarter.

The AI Competition: Ecosystem Wins

Kuaishou's real moat does not lie in the leadership of a certain technology but in the construction of a double - helix structure of "technology driving business evolution and business feeding back technology iteration". Technology and institutions evolve together in interaction, ultimately forming a competitive advantage at the ecosystem level.

This is based on Kuaishou's content ecosystem with 400 million daily active users and its diverse business ecosystem ranging from leading brands to small and medium - sized merchants, and from physical e - commerce to virtual content. This inclusiveness and diversity provide an enhanced loop of "data - algorithm - business" for Kuaishou's AI implementation, which can continuously and dynamically evolve, forming a flywheel of "merchant growth - data feedback - product upgrade - merchant further growth".

Ultimately, Kuaishou's AI strategy is not simply a technology competition but an ecosystem competition. AI technology itself is a tool, and how to integrate it into the business ecosystem and make all links cooperate with each other is the key to victory. Kuaishou's business ecosystem includes not only creators and merchants but also multiple roles such as the supply chain, advertisers, and service providers. Through the introduction of AI technology, the connections between these roles have become more efficient, forming a mutually - empowering and continuously - optimizing business system.

More importantly, Kuaishou is exploring how AI can help brand owners build long - term value rather than short - term growth. Kuaishou's AI marketing tools not only help brands obtain immediate traffic but also assist brands in building a loyal user base and achieving sustainable growth. This long - term business ecosystem is the real goal of Kuaishou's AI strategy.

When AI evolves from a technological concept to an operating system for the business ecosystem, the dimension of competition has quietly changed. Kuaishou's "Generating New Business" is essentially a migration of the business paradigm and an upgrade of the ecosystem density.

The future of AI is not the future of a single enterprise but the future of the entire business ecosystem. The boundaries between technology and business are gradually dissolving, and humans and machines, data and emotions, efficiency and meaning are intertwined into a new network in these ecosystems. Kuaishou may not be the absolute leader in technology, but by constructing the "technology - business" double - helix, it is becoming an explorer of the new business ecosystem.