China’s Film Industry Embraces AI, Maintains Strong Box Office Despite Early 2026 Dip

China’s film industry is undergoing a significant transformation driven by the integration of artificial intelligence (AI), whereas simultaneously navigating a slight downturn in box office revenue at the start of 2026. Recent discussions at the Hong Kong FilMart highlighted the evolving landscape of Chinese cinema and its increasing global collaboration.

Golden Rooster Awards and Market Overview

The Golden Rooster Awards, established in 1981, serve as China’s equivalent to the American Academy Awards Golden Rooster Awards. A recent panel discussion, “Golden Rooster Roundtable: Reshaping Filmmaking & Market Landscapes in the Age of Digital Intelligence,” explored the impact of digital technologies on the industry. The event was organized by the China Film Assn., China Film Co-production Corp., and Xiamen Film Administration, with co-organizer Xiamen Film Festival Co.

Box Office Performance and Trends

Despite a 52.9% decrease in year-to-date revenue in early 2026 compared to the same period in 2025, the Chinese mainland box office remains robust. Revenue currently stands at $1.58 billion, still exceeding North America’s by approximately $350 million. In 2025, the Chinese mainland maintained its position as the world’s second-largest box office market, generating around $7.4 billion in revenue.

Local films continue to dominate the market, accounting for nearly 80% of the box office share in 2025. A total of 106 imported films – the highest number in five years – represented just over 20% of the market.

Shifting Audience Demographics

Audience demographics are also evolving. Women now comprise 60% of moviegoers, and viewers over 25 years old make up 85% of the audience. Growth is particularly strong in lower-tier cities, with box office increases of 26.2%, 29.9%, and 31.7% in third-, fourth-, and fifth-tier cities, respectively.

AI’s Role in Filmmaking

AI has emerged as a central topic in the Chinese film industry. Director Lu Chuan views AI as a collaborative “partner” in filmmaking, accelerating digitization, reducing costs, and fostering creative exploration. However, he emphasized that AI cannot replicate the human elements of acting, interpretation, and emotional depth.

Executive producer Kinnie Cheung highlighted AI’s effectiveness in early concept planning and post-production, assisting with tasks like camera placement and multilingual voice integration. She reinforced the idea that AI cannot replace actors and their ability to bring roles to life.

Zhou Jianmin of Huaguoshan Media noted AI’s impact on animation and 3D production, enabling Chinese software to compete internationally and expand production possibilities. He stressed the importance of empathy in filmmaking, a quality that AI cannot replicate.

Fong Shuai, an AI engineer from the Shanghai Artificial Intelligence Research Institute, pointed out the increasing availability of commercial AI tools, but emphasized the need for customization and fine-tuning to meet the specific needs of filmmakers.

Future Outlook

The Chinese film industry is poised for continued growth and innovation as it embraces AI and expands its global collaborations. The focus on enhancing creative possibilities while preserving the essential human elements of storytelling will be crucial for maintaining audience engagement and box office success.