Less than two months after Hangzhou-based AI company DeepSeek launched its large language model of the same name, the livestreaming and e-commerce platform Jiao Ge Pengyou (meaning “come make a friend”) announced it had already made over 330 million yuan (over 45 million US dollars) in sales in a single day with the program’s assistance. The company praised DeepSeek’s ability to extract a product’s pertinent selling points, streamline sales scripts and tweak them according to different livestreaming scenarios, mitigate potential advertising risks, and crucially, do all of the above in just two minutes, compared to 20 to 40 minutes previously. In a short video, one of Jiao Ge Pengyou’s hosts says, “Why are we post-00s hosts so great? Because we are not afraid of embracing AI,” referring to the fact that the team is all in their 20s.
The free, open-source AI model developed in Hangzhou has upended and democratized the e-commerce industry in record time thanks to its ability to produce results comparable to ChatGPT and other leading AI models, and its low training costs (allegedly over 89 percent cheaper than OpenAI). As of February 9, the DeepSeek app had been downloaded over 110 million times, according to QuestMobile, with as many as 97 million weekly active users.
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With no barriers to registration, no cost, and superior Chinese language output results compared to ChatGPT, DeepSeek has become the AI tool of choice for e-commerce companies in China. Everyone from individual sellers to small and medium e-commerce businesses is adopting it to boost efficiency. Among them are international e-commerce operators in Yiwu, Zhejiang province, often referred to as the “small commodities capital of the world.” Fu Jiangyan, who runs a sock store in the Yiwu International Trade Market, even gained national prominence for her pioneering use of DeepSeek to generate promotional scripts in 36 languages.
Coupled with another AI platform, Chinagoods AI, Fu is able to create deepfakes of herself reading these scripts, though in reality, she only needs to count from one to five in front of the camera to train the program. It takes just 10 minutes to produce a single video, allowing her to stay in regular contact with her customers while juggling her busy routine. “I run the store on my own, handling orders, sales, and other services,” she told state broadcaster CCTV. By distributing these videos to targeted regions, Fu now receives inquiries from around 50 international customers daily.
However, AI-generated content is far from perfect, with errors ranging from obvious mistakes and misinterpretations to a lack of natural flow. It also requires lengthy input and detailed commands to produce satisfying results. Nevertheless, DeepSeek has reduced the time and costs sellers would otherwise have to spend experimenting with such techniques, further increasing their drive to adopt new AI tools.
Meanwhile, many young consumers have come to rely on DeepSeek as a trusted shopping assistant. On the social media platform Xiaohongshu, users share their experiences of asking DeepSeek to recommend a wide range of products, from smartphones and sanitary pads to baby formula, based on their unique needs. One user who asked DeepSeek to help them choose a fridge commented: “[DeepSeek] isn’t afraid to offend manufacturers; it clearly explains the potential risks of cheaper models. It also teaches you how to evaluate refrigerators, so you’ll never be tricked by deceptive advertisements again.”
But unlike companies involved in finance, cloud computing, automobiles, and even local governments, big e-commerce platforms have been reluctant to incorporate DeepSeek into their frontend or give other AI models the spotlight. That’s partly because giants like Taobao and JD, as well as short video platform Douyin (the Chinese version of TikTok), have developed their own AI models. Instead of being prominently promoted as smart shopping assistants on their homepages, these models are tucked away in various subsections or used for backend management. An article on tech media outlet 36Kr explains that this may be due to concerns about AI being used to decipher their platforms’ core algorithms, which underpin their successful business models. In other words, AI models could pose an even greater threat to the current e-commerce ecosystem and hierarchy than they already do. Perhaps most concerning to the individuals currently profiting from these programs is that, as the 36Kr article later suggests, AI models may even replace livestreamers in the future since they can produce more comprehensive, individualized, and seemingly more objective suggestions.
For now, however, the coexistence of AI-powered tools and charismatic influencers seems to have become the new e-commerce norm. Online shopping is not just a cold cash transaction; it also fosters a sense of emotional connection.
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