The narrative of 'peak traffic' has been repeated for three years, yet the undercurrents of the internet have never ceased. Recently, Youyoucao, an independent institution specializing in in-depth research on the internet industry, released its annual report in Beijing titled '2025 Internet Trends: AI-Native Applications and the Power Restructuring of Platforms.' This 120-page report does not merely dwell on the accumulation of macro data; instead, through extensive frontline research, it captures a pivotal turning point: AI is no longer just an 'arms race' for tech giants—it is becoming a core variable for small and mid-sized platforms to overtake their competitors.
The report points out that since the second half of 2024, with the steep decline in the cost of calling large models and the proliferation of on-device AI chips, innovation in the internet application layer is shifting from 'proof of concept' to 'commercial closure.' After visiting over 50 startups, the Youyoucao research team observed a clear trend: vertical AI-native applications are rapidly eating into the market share of traditional tool software. For example, in the three niche tracks of online education, intelligent customer service, and content creation, new products built on AI Agent architectures boast user retention rates averaging 37% higher than traditional SaaS products.
'We are in a very delicate window period,' said Youyoucao's chief analyst during the on-site interpretation at the report's launch. 'Over the past decade, the rules of the internet were dictated by super platforms because they held a monopoly on data and computing power. But now, AI is deconstructing that power. A team of just 20 people, using open-source models and cloud services, can absolutely create a product with a better user experience than those of big companies in a specific vertical scenario.' He believes this marks the official transition of China's internet from the era of 'traffic dividends' into the era of 'cognitive dividends.'
The report also warns of the new risks posed by 'AI hallucinations.' In content moderation tests conducted on social platforms, Youyoucao found that accounts relying heavily on content generated by large models had an information accuracy rate as low as 68% in specific fields (such as healthcare and finance). This 'seemingly professional but actually fabricated' content is polluting the information environment and challenging platform credibility. The report recommends that platforms establish a 'human-machine collaboration' moderation mechanism rather than relying entirely on AI automation.
Notably, this report also discloses data on 'AI penetration in lower-tier markets' for the first time. Through sample surveys, Youyoucao found that in third-tier cities and below, user acceptance of AI assistants (72%) is even higher than in first-tier cities (65%). However, their depth of AI tool usage is significantly insufficient. This reveals a vast market education opportunity—whoever can package AI capabilities into 'foolproof' tools in the most down-to-earth manner will gain the first-mover advantage in the lower-tier market.
As an independent research institution that has long tracked internet technology changes, Youyoucao is known for its pragmatic style of 'de-bubbling and seeing the essence.' Following the release of this report, several investment institutions and internet companies have begun organizing special seminars internally. As the report's conclusion states: 'When everyone is chasing computing power, what is truly scarce is the algorithm that understands human nature.'