iQIYI is leveraging artificial intelligence to transform micro-drama production, with AI now featured in 95% of Chinese micro-drama titles during the first quarter of 2026. The platform has responded by establishing an AI Film Studio in Shanghai and launching its first AI-generated production, "Cop in Trouble," signaling a strategic shift toward quality enhancement over sheer volume.
This move comes as interest in Chinese streaming content surges in Indonesia, where iQIYI has solidified its position as the third-most-watched OTT platform by viewing time in the second quarter of 2026. The integration of AI aims to streamline creative processes while maintaining narrative depth.
By focusing on AI-assisted storytelling, iQIYI seeks to set a new standard for digital content production, balancing technological innovation with audience expectations for engaging plots. The initiative reflects a broader industry trend of adopting AI to reduce production costs and accelerate turnaround times.
The development underscores the evolving role of AI in entertainment, where platforms like iQIYI are not only adopting the technology for operational efficiency but also using it as a creative tool to redefine content formats and viewer experiences in the competitive OTT landscape.