A report from the China Telecom Research Institute says demand for tokens, or word units used in AI processing, is rising sharply in China as the focus of the artificial intelligence industry shifts away from competition over foundation models and computing power toward large-scale agent deployment and application monetization. The report, titled Development Research Report on AI Infrastructure in the Agent Era (2026), describes AI as entering a new stage in which agents become the main form of deployment.
According to the report, agents are making complex AI technology less visible to end users and more widely accessible, allowing both consumers and businesses to complete complex end-to-end tasks without needing specialized technical expertise. Rao Shaoyang, head of the Industry and Enterprise Strategy Research Institute at the China Telecom Research Institute, said China’s annual token consumption is expected to reach 10 quintillion in 2026 and exceed 3,500 quintillion by 2030, with a compound annual growth rate close to 12x.
The China Telecom Research Institute said demand for tokens, or word units used in AI processing, is surging in China as the industry’s focus shifts from competition over large models and computing power to large-scale deployment of AI agents and application monetization.
In its Development Research Report on AI Infrastructure in the Agent Era (2026), the institute said artificial intelligence is entering a new phase in which agents are becoming the primary form of AI deployment. The report said agents make complex AI technology less visible and more broadly accessible, allowing both individuals and businesses to complete complex end-to-end tasks without specialized technical knowledge.
Rao Shaoyang, head of the Industry and Enterprise Strategy Research Institute at the China Telecom Research Institute, said China’s annual token consumption is expected to reach 10 quintillion in 2026 and exceed 3,500 quintillion by 2030, with a compound annual growth rate close to 12x.
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