China Unveils 18 Measures to Bring AI Deeper Into Retail, Logistics and Consumer Services

China has introduced 18 measures to expand the use of artificial intelligence and other advanced technologies across commerce, aiming to upgrade traditional businesses, create new consumer experiences and strengthen demand in the world's second-largest economy.

The guidelines were issued jointly by nine government departments, including the Ministry of Commerce, and cover goods consumption, services consumption, commercial distribution, innovative business applications and policy support. According to the State Council's official English-language website, the initiative is intended to integrate technological innovation more closely with commercial activity and encourage emerging business models.

The measures call for artificial intelligence to be incorporated into product development, design, manufacturing and marketing. They also encourage flexible manufacturing and AI-powered customization, allowing companies to respond more directly to changing consumer preferences.

The policy extends beyond product manufacturing. It promotes the use of AI in healthcare and smart elderly-care services, alongside digital upgrades in catering and other consumer-facing businesses. Commercial distribution is another focus, with support for smart warehouses, intelligent logistics equipment and unmanned delivery systems intended to improve efficiency throughout supply chains.

The guidelines also encourage the development of commercial AI agents for shopping assistance, business operations and logistics. Other proposed applications include companion robots, virtual shopping experiences, digital twins and ultra-high-definition audiovisual technologies in shopping districts, tourism, education and training.

The government is seeking to connect these applications with a broader effort to stimulate consumption. Official data cited by the State Council showed that China's retail sales of consumer goods reached approximately 37 trillion yuan during the first three quarters of 2026, up 1.1% year on year. Retail sales of services rose 5% over the same period, indicating stronger growth in services than in goods.

The contrast matters because China has been working to make domestic consumption a more sustainable source of economic growth. Technology-enabled services could create new reasons for consumers to spend, while helping retailers and service providers improve productivity and tailor their offerings. However, the success of the policy will depend on whether new applications generate meaningful demand rather than simply adding technology to existing operations.

There are already signs of expanding interest in some smart products. The official report said sales of smart glasses on major platforms increased 110% year on year from January to September. China's AI industry has also expanded into smartphones, connected vehicles and humanoid robots. The State Council report estimated that the country's core AI industry exceeded 1.2 trillion yuan in 2025.

For businesses, the guidelines point to potential opportunities in retail technology, logistics automation, digital services and AI-assisted product design. Smaller companies may benefit from more efficient inventory management and customer-service tools, although adoption costs, technical integration and data protection remain practical considerations.

The measures also raise questions about implementation. AI-generated recommendations and automated services must be reliable, while businesses need to manage consumer data responsibly. Unmanned delivery and automated logistics may require infrastructure investment and coordination with local regulations.

The guidelines are therefore both an industrial modernization initiative and an attempt to stimulate consumption. Their impact will depend on how quickly businesses deploy the technologies, whether consumers embrace the new services and whether productivity gains translate into stronger commercial activity.