'AI milk tea' a taste of new smart economy

Physical application

Beyond apps and digital assistants, AI technology is rapidly moving into physical devices — from smartphones and home appliances to vehicles and wearable devices.

Chinese companies are experimenting with ways to embed AI agents directly into everyday hardware, allowing users not only to ask questions but to complete real-world tasks without opening a single app.

When German Chancellor Friedrich Merz slipped on a pair of AI-powered glasses during a visit to Hangzhou last month he began speaking with Chinese staff as German subtitles appeared in real time before his eyes.

"Accurate, fast," Merz said after testing the device's translation feature, according to people present at the demonstration.

The glasses, developed by Hangzhou-based startup Rokid, drew immediate interest from German business executives traveling with the delegation. Several of them placed orders on the spot, highlighting the growing appeal of Chinese-made AI hardware among overseas users.

What caught global attention is that just days later, the device received a major software upgrade that underscored a broader shift in its AI ecosystem.

The overseas version of the company's Rokid glasses pushed an over-the-air update that integrated four major large language models simultaneously — Google's Gemini, ChatGPT, DeepSeek and Alibaba's Qwen.

Industry experts said that the multi-model architecture is unusual in the still-nascent AI glasses sector, where most devices rely on a single AI system.

Rather than switching from one model to another through separate services, users can toggle between the four systems depending on the task — from translation and navigation to messaging and purchasing — under a cloud-and-device collaborative architecture.

Latest data from market research company Omdia said that worldwide shipments of AI glasses reached about 8.7 million units in 2025, a 322 percent jump from a year earlier and the second consecutive year of growth above 300 percent.

Chinese companies are playing an increasingly prominent role. Rokid and smartphone maker Xiaomi ranked second and third globally in shipments, the research firm said.

In China, industry experts see the technology as part of a broader transformation in AI application and consumption.

Lu Ming, an economist and member of the 14th CPPCC National Committee, said AI-powered products and services are lowering the cost of making purchasing decisions by simplifying interactions between users and digital platforms in China.

"AI is breaking the traditional boundaries of consumer groups and geographic regions. It is evolving from a chat tool into an assistant that can actually complete tasks," Lu told China Daily on the sidelines of the annual two sessions in Beijing. "To some extent, AI is also driving consumption by expanding user groups."

Data from Alibaba Group showed that during this year's Spring Festival holiday, over 4 million Chinese users aged over 60 placed orders through AI systems. Natural-language interaction helped many elderly users who previously struggled with smartphone apps to place orders online.

Orders from smaller Chinese cities also surged compared with previous periods, as AI services expanded into lower-tier markets.

Lu said policymakers should encourage technology companies to leverage LLMs to build full-scenario digital assistants while also easing regulatory barriers and improving accessibility for elderly users.

"Only when institutional reform and technological innovation move forward together can new consumption momentum be fully unleashed," he added.