


Core Insights - The report from CITIC Securities highlights the potential of AI in diverse scenarios such as companionship, interaction, and entertainment, with AI companionship being one of the most imaginative directions [1] Industry Summary - AI is driving the evolution of companionship applications in emotional interaction, narrative gameplay, and embodied experiences, which are expected to significantly enhance user engagement and monetization potential through breakthroughs in long-term memory, multimodality, and personalized recommendations [1] - CITIC Securities believes that leading domestic companies will achieve commercial validation first, supported by models and content ecosystems, and will accumulate advantages in user retention, payment conversion, and scenario extension, thereby accelerating industry growth [1]