Image Source: Scienjoy

China’s live-streaming industry once created billion-dollar companies virtually overnight. 

During the boom years of 2015 to 2020, platforms like JOYY Inc (NASDAQ: YY), Hello Group Inc (NASDAQ: MOMO), Huya Inc (NYSE: HUYA), and Douyu International Holdings Ltd (NASDAQ: DOYU) surged into multi-billion-dollar valuations. 

Today, investors have largely abandoned the category as it has become one of the most tightly regulated sectors of China’s digital economy. 

Perhaps no company is a better reflection of this rise and fall than Scienjoy Holding Corporation (NASDAQ: SJ) a Chinese platform whose stock has fallen 94% over the past 5 years.  The company is making a splash, however, by announcing a strategic pivot towards AI-powered interactive entertainment.
 

Image Source: Scienjoy

AI Vista Live! 

On December 11, Scienjoy launched AI Vista Live, a next-generation AI platform in Dubai.  The launch serves as a milestone in the Company's AI transformation strategy and its expansion into the high-growth digital human sector.

So what exactly is AI Vista Live!? The platform creates characters that can talk, answer questions, teach lessons, or provide customer service.  Instead of relying on human livestreamers, the company is building interactive AI agents that can speak, respond, and perform tasks in real time.

The platform can power:

• AI customer service representatives
   
• AI hosts or presenters for livestreams or events
   
• AI guides in banks, airports, or government offices
   
• AI helpers embedded in apps or kiosks

The global digital human / AI agent industry is a rapidly expanding market, valued at roughly USD 31.5 billion in 2024 and projected to grow to over $625 billion by 2032, with a compound annual growth rate of around 45%.

The launch is significant because it moves Scienjoy’s AI strategy from concept to commercialization, with enterprise clients already using the technology in the United Arab Emirates, including Abu Dhabi Securities Exchange, Emirates NBD, and the Dubai Police. 

This shift could become a catalyst for the company’s growth if enterprise deployments scale and recurring revenue opportunities develop, especially as traditional livestreaming remains under pressure.

 "The introduction of AI Vista Live! marks a pivotal moment in Scienjoy's AI innovation roadmap. It bridges the gap between digital interaction and human-like engagement, expanding the possibilities for businesses and consumers to experience and apply AI in real-world scenarios,” said Victor He, Chairman and Chief Executive Officer of Scienjoy.

“Dubai serves as our strategic gateway to the Middle East, where demand for advanced AI solutions is accelerating. With AI Vista Live!, Scienjoy is strengthening its presence in next-generation digital human applications in the United Arab Emirates market, demonstrating our commitment to sustained innovation in the rapidly evolving digital-human technology revolution and long-term shareholder value.”  

The Science Behind The Pivot

For most of its history, Scienjoy operated a network of mobile livestreaming platforms where human hosts interacted with users in real time. Revenue came primarily from virtual gifting, where viewers buy digital items and send them to their favorite hosts.

The company's core business was built around livestream entertainment through a host-driven content ecosystem.  This was a highly profitable model, but external factors beyond the company's control led to the pivot.  In 2020, China imposed strict rules on tipping and digital gifting, content moderation, and algorithm transparency, alongside other regulations. The economics of livestreaming fundamentally changed in China.  

Instead, by focusing on AI-generated digital humans, the company is working towards acquiring enterprise clients while penetrating foreign markets not subject to China’s strict regulations. 

Catalysts to Watch

Several potential catalysts could influence investor sentiment:

1. Expansion of enterprise deployments in the UAE
Pilot tests from the Abu Dhabi Securities Exchange, Emirates NBD, and Dubai Police provide real-world validation. 

2. Regional expansion across the Gulf States
Dubai often serves as the entry point for companies targeting Saudi Arabia, Qatar, Bahrain, and other markets investing heavily in AI infrastructure.

3. Recurring revenue potential
Enterprise AI contracts can create longer-term, predictable revenue streams, unlike livestreaming.

4. Diversification outside China
Shifting revenue sources away from China’s regulated livestreaming economy reduces risk and broadens the company’s identity.

Forward View

Whether AI-driven digital humans gain broad adoption remains an open question. Still, the technology is moving too quickly for investors to ignore—especially within a small-cap name attempting a strategic reset. Scienjoy still has limited institutional coverage and few published price targets, but the launch of AI Vista Live! could draw new attention from analysts and retail investors if the company demonstrates early commercial traction.

Execution will be key. Pivoting from livestreaming to enterprise AI is ambitious, but if Scienjoy can convert its Dubai pilot clients into recurring revenue, the stock's narrative could shift meaningfully.
 

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