China leads the microdrama market, a genre of short, vertical-format films often dubbed "television for the TikTok generation." This format has flourished in recent years due to its rapid production, low cost, and suitability for mobile viewing habits. Episodes are typically short, using plot twists to engage audiences with stories of love, revenge, identity swaps, or family conflicts.

According to market research firm DataEye, over 220,000 AI-generated microdramas appeared on the Douyin platform in the first half of 2026, attracting about 500 billion views. This technology is used across many genres, including animation and works featuring live-action characters. In Q1, Chinese filmmakers released approximately 128,000 microdramas, more than three times the total for the entire previous year. About 95% of these were created using artificial intelligence.

AI creates a scene of a couple conversing in a Chinese microdrama. Video: Weibo

This technology streamlines the production process, enabling creative teams to produce content at low costs. The microdrama model prioritizes speed and the ability to produce a large volume of content. As more AI film production tools develop, many leverage them to further shorten the process. AI can participate from character creation and setting to motion imagery, helping teams save time and increase output.

According to CNN, with new generation video creation tools, a project lasting about 120 minutes can be completed by a team of five people in about one week, at a cost of approximately 15,000 yuan. This is less than one-tenth of the minimum budget for a live-action production in China.

Thanks to AI, many stages such as casting, set construction, filming, costume design, and post-production can be reduced or replaced by digital processes. Consequently, producers can undertake more projects with the same investment.

This trend is evident with the introduction of new tools, notably ByteDance's Seedance 2.0. This application can simultaneously process four types of input data: images, videos, audio, and text. From a few command lines or reference data, the model can generate 60-second videos with multiple camera angles, movements adhering to physical laws, and synchronized lighting and sound.

Some steps using artificial intelligence in the microdrama production process in China. Video: Tan Chen/CNN

While AI simplifies filmmaking, it also intensifies the competition in film production. DataEye reports that among the 221,900 new AI microdramas and comic series on Douyin in the first half of 2026, only 1,055 works surpassed 100 million views, representing 0.48%. With hundreds of thousands of works competing for attention, the advantage no longer lies in speed or production cost but in the ability to create compelling stories that captivate audiences.

Reduced production costs cause some filmmakers to shift from live-action shooting to using technology, narrowing job opportunities for actors and crews. According to the Financial Times, in Hoanh Diem, a major film production hub in China, many actors lost jobs or had to switch professions as new generation video creation tools became available.

Moreover, AI's deep involvement in microdramas creates new demands for content management, subjecting this genre to strict oversight in China. The National Radio and Television Administration of China states that platforms must proactively control potentially harmful content, and videos that do not meet requirements may be removed.

Since april, China has intensified its management of microdrama production and distribution, especially for AI-generated works. New regulations expected to take effect from september will further tighten censorship, requiring content and storylines to meet standards set by authorities.

AI-generated characters appear frequently in microdramas from China and Hollywood. Photo: Table Media

On CNN, actor Quan Lam, who works at Hoanh Diem studios, believes AI struggles to replace humans because it is formulaic and cannot fully convey emotional nuances. On the Hongguo streaming platform, films with real actors regularly feature in the top 10 most-watched content, alongside AI and animated works. This indicates that demand for live-action films persists despite technology reshaping content production and distribution.

However, Quan Lam notes that young actors without established careers, like herself, are the most vulnerable to this wave.

"AI certainly cannot replace real people, but it can take my job", she said.

Cat Tien (according to Financial Times, CNN)