China's AI boom inspires solo entrepreneurs, allowing independent businesses to thrive in tough job market

AI For Business


China's artificial intelligence boom is creating a new group of “individual entrepreneurs” who are turning their business dreams into reality with the help of technology, bringing a glimmer of hope to a bleak job market.

Although there is no government data tracking this group, the proliferation of affordable AI models suggests that the number of AI-powered solopreneurs in China is increasing. According to recent data from the U.S. Census Bureau, there are approximately 30 million independent contractors in the United States, accounting for 6.8 percent of all economic activity.

In China, local governments are actively seeking to attract private enterprises (OPCs) as a way to harness the potential of AI.

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In November, Suzhou, a city in eastern China's Jiangsu province, launched the OPC Service Alliance to support sole proprietorships. Also last month, the city of Shanghai designated a building in Jing'an District for private businesses, providing office space and computing resources.

With youth unemployment reaching record levels in China, the opportunities offered by traditional employers are no longer enough for the country's millions of university graduates, making self-employment an attractive option for this highly educated group.

Graduates attend a job fair at Fuyang Normal University in eastern China's Anhui province. Photo: CFOTO/Future Publishing via Getty Images alt=Graduates attend a job fair at Fuyang Normal University in eastern China's Anhui province. Photo: CFOTO/Future Publishing via Getty Images>

Karen Dai, a 38-year-old entrepreneur from Shanghai, leads SoloNest, a growing networking group for solopreneurs. Since its founding last year, SoloNest has organized more than 100 events, attended by more than 2,000 people, she said.

Participants' endeavors range from online sportswear sales and content creation to software development, AI-generated pet portraits, and bar management.

Dai said the networking business became profitable soon after launching because of low overhead costs. She said her income was about 500,000 yuan (about 77,000 yen) a year, the same amount as her previous salary working as a full-time marketing director at an online education company.

Zai Gao, a 23-year-old self-employed designer and teacher at Shanghai Visual Arts University, found AI tools to be liberating. Gao, who has been working on AI-generated content for three years, said his income as a solopreneur is comparable to that of a graphic designer at a major tech company.

He said nearly every independent designer around him is experimenting with AI tools, noting that “AI is creating a customized career path for everyone,” allowing them to “become more of their authentic selves.”

Gao uses a variety of AI image and video tools, including Youchuan, developed by a Chinese startup similar to Midjourney, and ByteDance's text-to-video conversion tool Jimeng. He also uses AI music tools from Suno AI, Splash Music, and Udio, as well as Google's Gemini 3 (his current favorite).

One of Gao's recent works features an AI-generated image of a man resembling the late Apple founder Steve Jobs, wearing his signature black polo neck and jeans, playing a vinyl record on a white turntable.

Gao's monthly spending on AI tool subscriptions ranges from 500 yuan to 1,000 yuan. “This is an extension of my brain,” Gao said, explaining how the AI ​​will enhance his abilities.

One of the best-known proponents of sole proprietorship is Sam Altman, founder and CEO of OpenAI. In a conversation with Reddit co-founder Alexis Ohanian last year, Altman said AI could free individual entrepreneurs from the need for large teams and large venture capital reserves.

“In a small group chat with my tech industry CEO friends, there were stakes in the first year of a single-person billion-dollar company that would have been unimaginable without AI – and now. [it] It’s going to happen,” he said.

Despite its potential, AI-powered entrepreneurship has raised concerns that it will simply add to China's growing 200 million gig workers. Given that almost one in five people under the age of 24 is currently unemployed, many fear that AI-powered solopreneurship will have a limited impact on the economy as a whole.

Only about 20 percent of SoloNest event participants found a sustainable source of income, and 40 percent were still looking for steady income, Dye said. About 40% have not yet started a business, but are keen to start one, she added.

Still, many independent business owners (Dai among them) remain enthusiastic supporters of this new trend.

“Our capabilities are limited because we are a one-man company,” she says. “But AI can push the boundaries of what we can do.”

This article originally appeared in the South China Morning Post (SCMP), the most authoritative news organization on China and Asia for more than a century. For more stories from SCMP, explore the SCMP app or visit SCMP on Facebook. Twitter page. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.





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