Hangzhou - China's embodied intelligence market was worth approximately 915 billion yuan (around 136.2 billion U.S. dollars) in 2025, up 20.4 percent year on year, an industry report said on Wednesday.

China's artificial intelligence (AI) industry has maintained relatively rapid growth, with both the number of enterprises and the market scale expanding significantly, according to the China Internet Development Report 2026 released by the Chinese Academy of Cyberspace Studies at the ongoing 2026 World Internet Conference (WIC) Wuzhen Summit in Wuzhen, east China's Zhejiang Province.

The report noted that China's AI agent market had expanded swiftly, with the country's enterprise AI agent market reaching 21.2 billion yuan in 2025.

Technologies for the intelligent interconnection of all things, human-machine collaboration, cross-sector integration and co-creation and sharing are unleashing significant potential, the report said, noting that they are profoundly reshaping the way people produce and live, driving major advances in economic and social development, and becoming an important force serving social progress and improving human well-being.

The Chinese Academy of Cyberspace Studies also issued the World Internet Development Report 2026 on the same day, highlighting rapid advances in AI technology worldwide.

Major countries have incorporated AI into their national strategies, accelerating technological breakthroughs and industrial applications and improving governance rules to gain the initiative in AI development, said the report.

The two reports have been released annually since 2017 as outcomes of the WIC Wuzhen Summit. The 2026 summit has gathered roughly 1,800 delegates from 138 countries and regions under the theme "Open Source and Openness, Joint Contribution and Shared Benefits -- Jointly Building a Community with a Shared Future in Cyberspace."