China Business Knowledge’s 5 tech waves to watch in 2026

2. Blockchain-verified AI agents bolster stablecoin safety

Blockchain is a decentralised digital ledger that records transactions across many computers, making it secure and transparent. As AI spreads across industries, its combination with blockchain could reshape finance by making systems more autonomous and interoperable, according to Kim Keongtae, Professor of the Department of Decisions, Operations and Technology.

His previous study shed light on the rising cryptocurrency and its influences on other technologies, underscoring the impact and functionality of blockchain on a wide range of applications. As AI takes on human tasks like trading and customer service, its ability to operate across platforms securely becomes critical, but without a universally accepted and verifiable digital identity, the AI programme cannot easily interact with other platforms.

“Blockchain provides the missing infrastructure, a neutral and verifiable identity layer for AI agents,” Professor Kim says. “The synergy extends to fraud detection and trust assurance. As AI models detect anomalies and suspicious behaviour, blockchain provides a tamper-proof source of truth to verify and cross-reference identities, transactions, and behavioural patterns.”

This secure, interoperable foundation also matters for a type of cryptocurrency called stablecoins, which are pegged to a stable asset like a fiat currency or commodities. As Hong Kong implemented a new regulatory framework for stablecoin issuers in August 2025, Professor Kim notes that its smooth launch is crucial for accelerating broader blockchain adoption and establishing the city as a regional leader in digital finance.

A cautious start by limiting issuance to a few trusted and well-funded companies can help establish standards for governance. “Over time, a broader range of HK$‑ or Chinese yuan‑pegged stablecoins could unlock local use cases and reduce reliance on US$‑backed stablecoins,” he adds. “In the near to medium term, investment and trading purposes are likely to remain the dominant use of stablecoins.”

3. More personalised e-commerce experience and smarter algorithms

E-commerce platforms nowadays deliver not just personalised product suggestions, but entire experiences tailored to consumers’ interests, making shopping feel personal, fast, and seamlessly woven into everyday life. Looking ahead, the momentum will only build.

Francisco Cisternas, Senior Lecturer of the Department of Marketing, anticipates that smarter models fuelled by richer data will allow more accurate predictions and better-timed offers. His recent study proposed a new budget-conscious model that can make the online retail recommendations more accurate. “Most routine tasks, such as recommending products, setting prices and designing creatives, are now already handled by algorithms,” he adds.

While AI is moving from a helpful assistant to the main decision-maker in e-commerce, Dr Cisternas points out that this doesn’t mean humans are out of the loop. AI often outperforms humans on repetitive and data-rich tasks, but it can falter when preferences are diverse or the data is scarce. “AI will be the central engine for many day-to-day decisions, while human and AI hybrids are the optimal mode,” he says.

In China, e-commerce giants have built a thorough ecosystem that integrates shopping, payments, logistics and social media under one roof. In the future, the country’s retail sector will continue to push the boundaries of seamless multi-channel integration, Dr Cisternas notes.

However, e-commerce must pivot from the old “right product, right moment” mantra to “right relationship, right lifetime” as shoppers look for more than just a quick purchase. “Personalisation that focuses on building long-term relationships with customers will outperform aggressive one-time price promotions,” Dr Cisternas adds.

4. Low-effort entertainment content dominates on social media

For most of us, social media isn’t just for connecting with friends, but also to see the world. Yet, it also often harbours a darker side that harms mental health and well-being. The Australian ban on social media has highlighted how “predatory algorithms” encourage youth to spend excessive time on screens.

This ban sheds light on the crucial role of humans as social media continues to evolve. “In the age of AI-driven tools flooding social media, humans will not compete with technology, but rather to distinguish themselves through superior judgment by knowing which content truly matters and defining the values and priorities that guide meaningful discourse,” says Philip Zhang, Associate Professor of the Department of Decisions, Operations and Technology.

Professor Zhang’s recent study shows that although AI can generate content and enhance social media consumption by filling missing metadata, it still falls short of matching the boundless creativity of humans. Human role would be even more crucial in the future, as Professor Zhang anticipates that social media will increasingly prioritise effortless consumption.

“If I were to imagine boldly, social media might instead evolve into a brain-computer interface one day,” he says. A brain-computer interface creates a direct communication channel between the brain and an external device, allowing users to control machines with their thoughts.

To complement the preference for low mental effort, simpler and more entertaining content would flourish greatly. This will make it harder for serious material to compete for attention—but not impossible.

He cites a podcast as an example and highlights the needs of seeking uninterrupted and insightful experiences. “While different platforms converge on similar features, the key is to identify niche audiences with specific and underserved needs.”

5. AI won’t fundamentally transform most industries yet

As elaborated above, AI has been used across industries. Our other recent articles have also explored how AI has and will continue to change our lives, from doing our jobs, data analysis, to supply chain management, with the vast majority of AI adoption remaining in early stages, rather than enterprise-wide scaling that reshapes core operations.

While there is lingering concern over the so-called “AI-winter”, where funding, interest, and excitement in AI dwindle, Michael Zhang, Wei Lun Professor of Business AI of the Department of Decisions, Operations and Technology, remains optimistic about its near-term impact. “Over the next few years, AI will undoubtedly boost productivity, especially in language and data-related tasks, but it is unlikely to fundamentally transform most industries, as current large language models still lack robust logical reasoning capabilities,” he says.

“Sectors closely tied to text and language processing, such as content creation, translation, legal documentation, and customer service, will experience the most transformative impact from AI in China,” Professor Zhang adds.