The boundary between cinema and simulation in China’s hyper-growth short-drama market has just blurred into insignificance. For the first time, an entirely AI-generated production has claimed the top spot on the trending charts of Hongguo, one of the region’s most influential short-form streaming platforms.
The series, Bodhi Linshi (菩提临世真人AI版), a reimagined take on the classic Journey to the West, ascended to the number-one position in less than two weeks. While the plot—centering on the revival of the Monkey King and a quest for revenge—is designed for viral consumption, its victory represents a structural shift in the industry. The rise of AI-generated short dramas is no longer a technical curiosity. it is actively eroding the market share and livelihoods of human performers.
This transition is being fueled by a perfect storm of plummeting production costs, aggressive platform incentives and a regulatory environment that makes virtual humans more attractive than real children. As AI “simulated humans” move from the fringes to the center of the screen, the human actors who built the vertical-drama boom are finding themselves sidelined, underpaid, or digitally duplicated without consent.
The Economics of the Virtual Pivot
Within the industry, these productions are often categorized as “Manju” (漫剧), a hybrid of comic-style storytelling and cinematic AI. The economic appeal is stark. According to recent industry data, the cost of producing high-quality AI-simulated dramas has dropped significantly, with some estimates suggesting costs have fallen from roughly 1,500–2,000 RMB per minute to as low as 800–1,000 RMB per minute within a single year.
Platforms are accelerating this shift through direct financial engineering. In February, Hongguo introduced a fresh incentive policy for “Manju” content, assigning AI-simulated human dramas a revenue-sharing coefficient of 60—the highest among all comic-drama types. When combined with the removal of guaranteed minimums for human-led productions, small and mid-sized production houses have had little choice but to pivot toward AI.
The scale of the takeover is evident in the numbers. Data from WeTrue indicates that by the final week of March, AI-simulated humans accounted for more than 85% of the top 100 dramas in the “Manju” category. This surge is not just about cost; it is about capability. AI allows creators to execute high-fantasy, sci-fi, and apocalyptic settings—genres that are prohibitively expensive or risky to film with live actors—with a level of visual polish that appeals particularly to male and middle-aged audiences.
Navigating Regulations and Risk
Beyond the balance sheet, AI offers a strategic escape from increasingly stringent government oversight. The National Radio and Television Administration (NRTA) has tightened management of micro-dramas featuring children, leading many platforms to stop accepting scripts with “cute baby” themes to avoid the legal and ethical complexities of filming minors.
Production houses have responded by using AI to generate “compliant” child characters. A recent hit during the Qingming festival, Cheat Me Into a Good Rebirth? Fine, You’ll Regret It (骗我投个好胎？行，你们别后悔), featured a protagonist named Shi Ye who is entirely AI-generated. By replacing a human child with a digital one, producers bypass labor laws and regulatory scrutiny while maintaining the emotional hook of the “adorable child” trope.
The technical barrier to entry is likewise falling. The public beta of tools like Seedance 2.0 has opened API access to a wider range of creators, offering integrated copyright and portrait authorizations. As these tools evolve, the “uncanny valley”—marked by glitches like mismatched head and body orientations—is closing, making the distinction between a real actor and a simulation nearly invisible to the casual viewer.
The Human Cost: Pay Cuts and Portrait Theft
For the human talent, the “AI revolution” feels more like a collapse. While top-tier stars maintain their leverage, the rank-and-file actors of the vertical-drama world are facing a crisis of unemployment and wage devaluation.
The impact is most visible in daily rates. Some supporting actors in vertical dramas have reported their daily pay plummeting from 1,000–2,000 RMB to as little as 400–500 RMB. Extras have seen their earnings drop from 150 RMB to double-digit figures. In some cases, the instability has led to outright payment failures, with some actors taking to social media to demand unpaid wages from production houses.
| Actor Tier | Previous Daily Rate (Est.) | Current Daily Rate (Est.) | Primary Pressure Point |
|---|---|---|---|
| Supporting Actor | 1,000 – 2,000 RMB | 400 – 500 RMB | AI-simulated replacements |
| Extra/Background | 150 RMB | < 100 RMB | Reduced filming days |
| Mid-tier Talent | Variable | Significant Decline | Project cancellations |
More alarming is the rise of “portrait theft.” AI models are often trained on massive datasets of public images and videos, allowing producers to create virtual characters that bear a striking resemblance to real celebrities. This has triggered a wave of legal backlash. High-profile actors, including Gong Jun, Jackson Yee, and Yang Zi, have issued public statements condemning the unauthorized apply of their likenesses and voices to generate AI characters for profit.
Industry insiders describe a “grey zone” where producers claim characters are merely “similar” rather than clones, often relying on the fact that smaller actors lack the resources to pursue legal action. In this environment, a performer’s likeness can be used to create a digital twin that effectively competes for the performer’s own future roles.
The Future of the Frame
The penetration of AI extends beyond short-form content. Major entities like Yao Ke Media have already introduced dedicated AI actors, such as Qin Lingyue and Lin Xiyan, for specialized series like Qinling Bronze Mysterious Records (秦岭青铜诡事录). While some early viewers criticized the aesthetics as unnatural, the company maintains that these characters are designed specifically for the role’s requirements rather than as copies of existing humans.
Despite the disruption, some industry veterans argue that “real-shoot” (实拍) productions possess an irreplaceable value. Major labels like Kyushu and Shanhai have signaled a commitment to “boutique” human-led strategies, betting that authentic emotional resonance cannot be synthesized by an algorithm.
As the industry enters a period of deep adjustment, the focus is shifting toward the script. When high-conclude visuals become a commodity available to anyone with a subscription to an AI tool, the scarcity shifts from the image to the story. The coming months will likely see a clearer demarcation between “efficiency-driven” AI content and “emotion-driven” human cinema.
The next major checkpoint for the industry will be the potential introduction of more specific AI-disclosure mandates by regulators, which would require platforms to clearly label all AI-generated human likenesses.
Do you suppose AI characters can ever truly replace the emotional depth of a human actor? Share your thoughts in the comments below.
