BILI's Strategic AI Move: A New Era of Content Innovation

In the rapidly evolving streaming wars, artificial intelligence has emerged as the ultimate differentiator. Bilibili (BILI), the Chinese video platform once synonymous with anime and gaming culture, has leveraged AI-driven content creation to build a formidable competitive moat. By integrating AI into its core operations—from personalized recommendations to ad efficiency—Bilibili has not only solidified its position in the domestic market but also positioned itself as a global innovator in the $250 billion streaming industry.

AI as the Engine of Content Innovation

Bilibili’s 2025 AI strategy centers on two pillars: enhancing user engagement and optimizing monetization. The platform’s InsightAgent tool, powered by Alibaba’s Tongyi Qianwen models, has revolutionized advertising by generating real-time data insights for brands. During the 618 Sale, this system improved commercial deal efficiency by over five times, slashing the time brands needed for advertising decisions [5]. Meanwhile, the upcoming “Codename H” AI tool for video podcast production underscores Bilibili’s commitment to empowering creators with low-barrier, high-impact tools [1].

These initiatives are part of a broader push to embed AI across the platform. In Q2 2025, Bilibili reported a 20% year-over-year increase in advertising revenue, driven by AI-enhanced ad delivery and creative generation [1]. The company’s gross margin expanded to 36.5%, a testament to the cost-effectiveness of its AI infrastructure [6]. By automating tasks like content moderation and recommendation algorithms, Bilibili has reduced operational costs while scaling its offerings to a diverse audience spanning lifestyle, education, and gaming [4].

User Engagement: The AI-Powered Stickiness Factor

Bilibili’s AI-driven personalization has transformed user behavior. In Q2 2025, the platform reported an average daily time spent of 105 minutes, outpacing YouTube’s 40-minute average per session and TikTok’s 52-minute average [3]. This stickiness is fueled by AI-powered recommendations that curate content based on nuanced user preferences, from niche anime subcultures to educational tutorials. The platform’s “bullet comment” system, enhanced by AI moderation, further fosters a sense of community, with 78% of users expressing positive perceptions of virtual anchors and interactive features [5].

In contrast, competitors like Netflix and YouTube rely on traditional recommendation engines. While Netflix’s AI-driven ad-supported tiers have doubled ad revenue projections for 2025 [4], its 62.1-minute average daily usage pales against Bilibili’s engagement metrics [3]. TikTok, despite its 9.1 billion hours of Q2 2025 watch time, faces regulatory headwinds in the U.S., creating an opening for Bilibili to expand internationally [6].

A Competitive Moat: Bilibili’s Unique Ecosystem

Bilibili’s moat lies in its hybrid model: combining user-generated content (UGC) with professional-grade AI tools. Unlike YouTube’s ad-heavy, subscription-light approach or Netflix’s premium content strategy, Bilibili fosters a community-driven ecosystem where creators and viewers coexist. This is evident in its PUGV (Professional User-Generated Video) and OGV (Original Content) strategies, which blend grassroots creativity with polished production [4].

The platform’s AI tools further democratize content creation. For instance, Symphony-like generative AI tools on TikTok enable short-form content, but Bilibili’s focus on mid- to long-form video production via Codename H caters to a different audience—those seeking depth over virality [5]. This differentiation is critical in a market where 72% of marketers in 2025 prioritize authentic storytelling over transactional ads [2].

Financials and Future Prospects

Bilibili’s financials reflect the success of its AI-driven strategy. The company reported consecutive profitability for three quarters, with eCPM (effective cost per mille) rising over 10% year-over-year [4]. Its gross margin expansion to 36.5% in Q2 2025 [6] highlights the scalability of AI in reducing costs while boosting revenue streams.

Looking ahead, Bilibili’s investments in virtual reality (VR) and augmented reality (AR) could unlock new revenue channels. The platform’s e-commerce integrations, which saw a 30% year-over-year increase in performance-based ad revenue [1], also position it to capitalize on the $230 billion OTT video market [4].

Conclusion: A Strategic Bet on AI

Bilibili’s AI-driven content creation is not just a technological upgrade—it’s a strategic repositioning in the streaming landscape. By combining hyper-personalization, community engagement, and scalable monetization tools, the platform has built a moat that rivals even the most entrenched players. For investors, BILI represents a compelling case study in how AI can transform a niche platform into a global innovator.

Source:
[1] Bilibili (BILI) Q2 2025 Earnings Call Transcript [https://www.fool.com/earnings/call-transcripts/2025/08/22/bilibili-bili-q2-2025-earnings-call-transcript/]
[2] The State of Social Media Marketing in 2025 [https://influencermarketinghub.com/social-media-marketing-benchmark-report/]
[3] Video Streaming App Benchmarks (2025) [https://www.businessofapps.com/data/video-streaming-app-benchmarks/]
[4] Perspectives: Global E&M Outlook 2025–2029 [https://www.pwc.com/gx/en/issues/business-model-reinvention/outlook/insights-and-perspectives.html]
[5] Bilibili's InsightAgent Supercharges Ad Efficiency with AI [https://completeaitraining.com/news/bilibilis-insightagent-supercharges-ad-efficiency-with-ai/]
[6] Bilibili Profit Rises on Games and Ads [https://www.aol.com/finance/bilibili-profit-rises-games-ads-130036948.html]