Jack Yang

Jack Yang asked about the commercialization difficulty of user-paid AI tools in China compared to overseas markets, based on Cheetah Mobile's domestic experience, and the potential timeline for this commercialization path.

Answer

Chairman and CEO Fu Sheng acknowledged that there are differences in user willingness to pay between Chinese and developed overseas markets. However, he asserted that Chinese users' willingness to pay for high-quality tools and products has significantly increased compared to a few years ago. He cited Cheetah Mobile's internet products, where over 60% of revenue now comes from user subscriptions (even for non-AI tools), as proof that the user-paid model is viable in China. This shift was driven by a focus on user experience, retention, and value delivery, moving away from an ad-centric model. He expressed confidence in continuing this path in China and exploring opportunities overseas.