Impact Assessment of Kuaishou's AI Content Governance Policy

Based on the information I have collected, I will systematically assess the impact of Kuaishou’s AI content governance policy from multiple dimensions.

Kuaishou officially launched its special governance campaign for “AI-Modified” videos on January 1, 2026, as a positive response to the unified deployment of the National Radio and Television Administration. This policy aims to crack down on illegal acts such as malicious tampering and vulgar deconstruction of classic film and television, animation works using AI technology. As of now, 1,057 pieces of illegal content have been disposed of [1].

• Content that seriously violates the spiritual core and character image of the original work, subverting basic cognition
• Content that glorifies bloodshed and violence, bizarre and vulgar content, and promotes incorrect values
• Content that misappropriates or tamper with Chinese culture, leading to distorted perceptions of history
• Content that adapts animated images familiar to children into “evil cult-style” versions

• Improved Content Quality:
  After clearing illegal “AI-Modified” content, the platform’s content ecosystem will be healthier, helping to enhance users’ overall trust in the platform
• Reduced Copyright Risks:
  According to legal experts, “AI-Modified” videos involve infringing on the information network dissemination rights of original works, as well as the portrait and voice rights of actors. The governance campaign can effectively reduce the platform’s legal risks [3]
• Youth Protection:
  The special rectification clearly states the goal of “creating a healthy online space for the healthy growth of teenagers,” which will improve the platform’s social image

• Restricted Creator Activities:
  Some creators relying on AI secondary creation may face pressure to transform
• Adjustment to Content Diversity:
  In the short term, the supply of some traffic-driven AI-generated content may decrease

From the perspective of industry development, the special governance will promote the platform’s transformation from a “traffic-driven” model to a compliant innovation model that is “trustworthy and accountable” [3]. Establishing a standard system covering explicit/implicit identification, content traceability, and compliance in copyright transactions will become a long-term mechanism for AI content governance.

According to Kuaishou’s 2025 Q1 financial report, the company’s total revenue reached RMB 32.6 billion, with a year-on-year growth of 10.9%, and adjusted net profit was RMB 4.6 billion [4]. The AI content governance policy has limited direct impact on core commercial businesses:

Kuaishou’s Ke Ling AI product shows strong commercial potential. Data shows that Ke Ling AI’s revenue continued to grow in the first three quarters of 2025, increasing from RMB 150 million in Q1 to over RMB 300 million in Q3 [5]. In terms of revenue structure:

• Individual (P-side) Subscription Members contribute 70%
  : Mainly self-media creators, advertising and marketing practitioners
• B-side API Services account for 30%
  : Has over 10,000 enterprise clients, including well-known companies such as Xiaomi and BlueFocus

• Compliant operations will enhance brand credibility, attracting more brand advertisers
• Collaborating with regulatory authorities to develop governance standards can enhance industry discourse power
• Standardized AI content production helps Ke Ling AI establish a differentiated competitive advantage

• If users use Ke Ling to generate illegal content, it may negatively impact the brand image
• Continuous tightening of regulatory policies may increase compliance costs

There is significant synergy between Ke Ling AI and Kuaishou’s main app:

• User Diversion
  : High-quality AI content generated by Ke Ling enriches the content ecosystem of the main app
• Creator Empowerment
  : Reduces the threshold for creation and improves content production efficiency
• Commercial Conversion
  : P-side users can publish generated content on Kuaishou to realize traffic monetization

70% of Ke Ling’s revenue comes from overseas markets, and its global revenue structure reduces single-market risks [5]. A compliant content governance mechanism helps Ke Ling build brand credibility in overseas markets and respond to increasingly strict AI regulatory requirements in various countries.

The special governance upgrades the platform’s review responsibility from “passive cooperation” to “proactive pre-prevention and control” [3]. The platform needs to establish a content governance mechanism covering pre-event, in-event, and post-event stages, and is obligated to proactively review and quickly remove illegal “AI-Modified” videos upon discovery.

From a capital market perspective, standardized content governance helps enhance the “certainty premium” of Kuaishou. After the short-video industry enters the stock competition stage, the capital market increasingly values efficiency, monetization stability, and technological barriers [6]. Although compliant operations may mean a more conservative growth pace, it will enhance the company’s long-term certainty.

1. Short-term
   : AI content governance has limited impact on Kuaishou’s core commercial businesses, and the implementation of the policy helps reduce legal risks and compliance costs
2. Mid-term
   : Standardized governance lays a foundation for the sustainable development of Ke Ling AI, enhancing its competitive advantage in the AI video generation field
3. Long-term
   : Compliance innovation capabilities will become the platform’s core barrier, helping the market re-evaluate Kuaishou’s valuation logic

• Uncertainties in regulatory policies may affect the expansion pace of AI businesses
• Intensified competition may squeeze Ke Ling AI’s market share and profit margins
• Low GPU computing power utilization (below 10%) restricts the profitability of AI businesses [5]

[1] AASTOCKS - National Radio and Television Administration Deploys Special Governance Campaign for “AI-Modified” Videos (https://www.aastocks.com)

[2] People’s Daily Online - When Will the Absurd “AI-Modified” Videos Stop? (http://sc.people.com.cn)

[3] 21st Century Business Herald - The Gray Industry Chain Behind “AI-Modified” Classic Videos (https://www.21jingji.com)

[4] Kuaishou Technology - Unaudited Financial Results for the First Quarter of 2025 (https://ir.kuaishou.com)

[5] FutuNiuNiu - Kuaishou’s AI Tool Betting on the Future (https://news.futunn.com)

[6] CNFOL - After a 15% Gain in Two Days, the Market Re-evaluates Kuaishou’s AI Value (http://mp.cnfol.com)