Kuaishou Technology believes that artificial intelligence (AI) will invite more users to its video platform, following its slowest quarterly sales growth since going public in 2021.
The Tencent-backed video platform sees AI as the key to revitalizing its business, leveraging AI-generated content to attract advertisers and boost monetization.
Kuaishou said in an exchange filing that AI is the “driving core” of its platform’s growth. AI-driven content has significantly increased user engagement, making the platform more appealing to advertisers.
During the final three months of 2024, average daily advertising expenditure targeting AI-generated content exceeded 30 million yuan (about $4.1 million).
AI innovations unlock new revenue opportunities
Kuaishou is investing heavily in AI technologies to boost content creation and encourage more advertisers to use its platform. As of February 2025, its recently launched video creation platform, Kling AI, which came on board late last year, has already racked up more than 100 million yuan in total revenue.
Kuaishou employs AI video-making to unleash creators and businesses through enhanced visuals and AI-powered ads. These allow brands to create stunning adverts that resonate with users’ interests, resulting in increased conversions.
Kling AI focuses on e-commerce by providing real-time product demos, promotions, and AI short clips reflecting users’ interests. With the growing demand for short-form video content within digital marketing, Kuaishou’s AI toolset keeps it on the cutting edge of future video commerce trends.
Kuaishou faces challenges even as AI boosts growth
While Kuaishou’s AI investments have boosted engagement and revenue opportunities, the company faces ongoing challenges. Bloomberg Intelligence’s Robert Lea and Jasmine Lyu cite economic headwinds, increasing research and development costs, and e-commerce competition as forces that might pinch profit margins.
Still, Kuaishou remains optimistic about 2025. With AI-powered innovations and a growing commercial ecosystem, Kuaishou insists it can use its traffic more effectively and increase profitability.
Despite slowing growth, Kuaishou reported fourth-quarter revenue of 35.4 billion yuan was up 8.7% from last year, which aligns with analysts’ expectations of 35.7 billion yuan.
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