ByteDance and Alibaba shut down AI companions under pressure from new Beijing rules
ByteDance and Alibaba are shutting down AI companions — virtual interlocutors that users could create and customize for long-term conversations. The companies are acting preemptively, without waiting for the new Chinese rules governing human-AI interaction to formally take effect. The synchronized move by the country's two largest tech giants signals that the requirements have already been formulated clearly enough.
AI-processed from Bloomberg Tech; edited by Hamidun News
ByteDance and Alibaba announced on July 6, 2026, the closure of features that allowed users to create personalized AI companions and communicate with them, preparing for new Chinese regulations governing human interaction with artificial intelligence to take effect.
What exactly companies are disabling
Both platforms provided tools for creating customizable AI characters: virtual conversationalists with a given personality, communication style, and ability to remember the context of previous conversations. Users could build long-term dialogical "relationships" with such companions — these scenarios are what fell under the new regulation.
The shutdown is taking place preventively: ByteDance and Alibaba are removing features ahead of official rule adoption, rather than in response to already-active restrictions. This step signals that companies received a sufficiently clear regulatory signal to not wait for the final text of the law.
Why Beijing is targeting AI companions
The AI companion market is one of the fastest-growing segments of consumer artificial intelligence. Tens of millions of users worldwide regularly communicate with personalized virtual conversationalists. The prolonged and personal nature of such interaction is precisely what attracted the attention of Chinese regulators.
Key concerns that typically stand behind such initiatives:
- accumulation of large personal data arrays during prolonged conversations with AI
- risk of forming emotional dependence on a virtual character
- difficulty in drawing the line between chatbot function and simulation of human relationships
- potential psychological impact — especially on youth audiences
China has already introduced strict restrictions on online games to protect minors from addiction. Regulating AI companions appears to be a logical continuation of this approach, extended to a new class of technologies.
How this relates to the global trend
The synchronized withdrawal by China's two largest technology conglomerates from AI companions contrasts with what is happening on Western markets. There, personalized AI conversationalists are among the priority growth areas: major companies are investing in long-term dialogue agents capable of maintaining context and building relationships with users.
Nevertheless, the regulatory vector set by Beijing has significance beyond China as well. The question of where the boundary lies between a "useful AI tool" and a "simulation of human relationships" is being discussed in different jurisdictions — simply at a slower pace.
What this means
The preventive step by ByteDance and Alibaba shows that in China, AI regulation is transitioning from general declarations to specific product restrictions. Companies operating in this market are forced to factor regulatory risks into development from the very beginning — not after launch. As AI companions become a mass product, China is setting a precedent that other countries will inevitably look toward.
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Key Questions Answered
What exactly companies are disabling?
Both platforms provided tools for creating customizable AI characters: virtual conversationalists with a given personality, communication style, and ability to remember the context of previous conversations. Users could build long-term dialogical "relationships" with such companions — these scenarios are what fell under the new regulation. The shutdown is taking place preventively: ByteDance and Alibaba are removing features ahead of official rule adoption, rather than in response to already-active restrictions. This step signals that companies received a sufficiently clear
Why Beijing is targeting AI companions?
The AI companion market is one of the fastest-growing segments of consumer artificial intelligence. Tens of millions of users worldwide regularly communicate with personalized virtual conversationalists. The prolonged and personal nature of such interaction is precisely what attracted the attention of Chinese regulators. Key concerns that typically stand behind such initiatives: accumulation of large personal data arrays during prolonged conversations with AI risk of forming emotional dependence on a virtual character difficulty in drawing the line between chatbot function
How this relates to the global trend?
The synchronized withdrawal by China's two largest technology conglomerates from AI companions contrasts with what is happening on Western markets. There, personalized AI conversationalists are among the priority growth areas: major companies are investing in long-term dialogue agents capable of maintaining context and building relationships with users. Nevertheless, the regulatory vector set by Beijing has significance beyond China as well. The question of where the boundary lies between a "useful AI tool" and a "simulation of human relationships" is being discussed in dif
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