How AI Agents Are Reshaping Software and Unlocking a Boom for Chinese Startups

01 Low‑code software being replaced by AI; complex interactions may create super‑apps

a16z partner Jennifer Li stated that “AI is swallowing software.” Ant Group CEO Han Xinyi agreed, noting that software solves deterministic problems, which large models excel at, and that agents are already automating tasks at a rapid pace.

Xiaomi’s Zhang Lei explained that agents have replaced apps in simple, well‑defined domains, but complex, strong‑logic software remains difficult for AI to replace. He highlighted that on AI glasses, the frequency of invoking the voice assistant is 6‑7 times higher than on smartphones.

GSR Managing Partner Zhu Xiaohu emphasized that AI and software will coexist. He warned investors to avoid collaborative‑software markets, which he sees as small, and to focus on mature technologies such as Voice Agents, which are easier to commercialize.

02 User retention as the growth metric for AI‑Agent companies

Zhu argued that user retention is the universal indicator of growth, from the PC era to the AI era. Many AI startups lack strong retention because users are curious at launch but do not stay paying after the novelty fades. High retention proves a product’s development potential.

Han believes that in the medical field, user retention is less critical because the service is a high‑frequency, essential need. The real challenge is whether AI can truly understand patients and give professional advice, which hinges on three technical hurdles: high‑quality data, hallucination suppression, and medical ethics.

03 Mature technologies are ready for commercialization

According to Zhu, the most commercializable technologies are “boring” ones. Last year, AI‑driven meeting‑summary tools saw success; this year, Voice Agents are scaling in customer service, sales, and AI toys.

In the medical scenario, Han summarized the three major obstacles for large‑model deployment: high‑quality data, hallucination control, and medical ethics. Ant Group has launched the AI health app AQ, which demonstrates effective medical‑consultation performance.

04 AI glasses as a new entry point

Zhang predicts that AI‑enhanced hardware will be re‑thought, with AI glasses potentially becoming a new super‑entry point. Unlike AI phones or PCs that improve user experience while keeping passive interaction, AI glasses shift from passive to proactive decision‑making, capturing user intent and acting on it.

He noted that on Xiaomi’s AI glasses, the activation frequency of the voice assistant is 6‑7 times that of smartphones, illustrating the high engagement potential of this form factor.

05 Outlook: AI agents will drive the next wave of applications

The panel concluded that the rapid evolution from single agents to coordinated multi‑agent systems marks a core trend for AI adoption. Chinese entrepreneurs, leveraging supply‑chain cost advantages, AI ecosystem strengths, and differentiated user experiences, are well‑positioned to capture the anticipated explosion of AI applications next year, especially in To‑C markets.