AI services boom as young Chinese monetize new skills, data shows

  • Orders for AI-related services on Alibaba’s marketplace surged 157% in the first half, reaching nearly 10 million
  • The platform is emerging as a hub for China’s AI-powered micro-entrepreneurs, from coding to digital content creation

Alibaba’s second-hand marketplace Xianyu (闲鱼) has said AI-related service orders reached 9.816 million in the first half of the year, up 157% year on year.

Nearly 5 million users bought AI services on the platform, up 98%, according to data released by Xianyu on July 29.

Services range from prompt templates costing a few yuan to customized AI deployments worth tens of thousands of yuan. Listings cover AI skills, tutorials, tools and digital products.

AI skill-based services accounted for 45.1% of total AI orders, with popular categories including AI-generated artwork, animation, video, voice and programming.

AI coding and website development saw the fastest growth, with orders surging 1,732% year on year.

This comes as AI programming tools lowered the barrier for non-professional users to offer software development services.

AI animation orders jumped 1,425%, while AI presentation and office services rose 264%.

Beyond major cities

Xianyu’s data shows AI side hustles are no longer concentrated in technology hubs.

Users aged 18 to 35 account for more than 60% of AI service sellers, while female sellers make up 62.4%. Average monthly transaction value was 897 yuan ($132.6), suggesting most participants treat AI services as a side business.

Except for the header image, all images are sourced from Xianyu.

Fourth-tier cities accounted for the largest share of sellers at 32.2%, followed by second-tier cities at 28.6%. On the demand side, second-tier cities were the biggest consumer group, accounting for 30.6% of buyers.

The trend reflects a broader shift: AI is moving from something people learn about to something they use to make money.

AI-powered micro-businesses

Xianyu has become a marketplace where users package AI capabilities into services and products, creating a lightweight entrepreneurship model.

The development also comes as Chinese cities roll out support for AI-powered one-person companies (OPCs).

More than 20 cities have introduced related policies, with 426 OPC communities established nationwide to provide support ranging from workspace and computing subsidies to financing.

For global observers, Xianyu offers a window on how AI is spreading beyond technology companies and into everyday economic activity.

The fact that smaller cities are producing a large share of AI service providers suggests that AI tools are rapidly lowering the barriers to participation.