China’s ‘One-Person Companies’ Surge as AI Agents Power Solo Entrepreneurs

In the age of AI, the traditional image of a startup — a garage full of sleep-deprived coders — is being replaced by the “one-person company.”

During a recent interview with Business Insider, Kuo Zhang, president of Alibaba.com, revealed that roughly 30% to 40% of the customers on Alibaba’s e-commerce platform are now solo entrepreneurs. These individuals are running full-scale operations without a single human employee on the payroll. Instead, they are leaning on AI to do the heavy lifting.

As Zhang explained to Business Insider, these AI tools aren’t just software. They are acting as a digital workforce. “Instead of taking the place of the human beings, actually, they are the employees of that solo entrepreneur,” Zhang said.

The secret sauce behind this explosion is the “AI agent.”

Unlike a standard chatbot, these agents can handle complex, multi-step tasks that used to require a dedicated team. Alibaba recently rolled out a tool called Accio Work, specifically designed to help these one-person powerhouses manage everything from marketing and logistics to tax compliance and customer complaints.

The demand is staggering. Alibaba’s primary Accio agent, launched in late 2024, has already reached 10 million monthly active users. Zhang noted that these tools bridge the gap for small business owners who have great products but lack the “grunt work” support of a large corporation.

“They are in lack of help or tax support. And now, AI is very easy to use. It’s very easy to adopt and to understand everything is going to change that perspective, and we think they can benefit from them the most,” Zhang told Business Insider.

The OpenClaw gold rush

Beyond Alibaba’s proprietary tools, an open-source AI agent called OpenClaw has triggered what locals are calling a “gold rush” in China. This craze has led to the creation of quirky, automated agents that handle everything from stock trading to setting up blind dates. While the scene is exploding in China, Zhang observed that the US market is still catching up.

However, the “gold rush” has its pitfalls. Some users have reportedly burned through hundreds of dollars on tokens without seeing a return on their investment.

Zhang emphasized that for these solo businesses to survive in the long term, the tech needs to be simple rather than flashy. He told Business Insider: “If you go to SMBs, you ask about all the fancy terms about AI, like the token economy, like cloud, like open cloud, probably they’ve never heard about that, and what they care most is about how these tools can help me.”

Government perks and global hurdles

To keep this momentum going, some Chinese cities are rolling out the red carpet for solo founders. Startups can find themselves eligible for free housing, rent-free office space, and massive subsidies of up to $720,000.

Despite the local support, these one-person giants still have to navigate the choppy waters of global politics, including shifting tariff policies and international trade rules. Zhang, who has led Alibaba.com since 2017, says the key to surviving the political “noise” is to stay obsessed with the tech and the customer.

Meanwhile, a massive $2.5 billion scheme to smuggle Nvidia AI servers into China highlights the growing global stakes — and risks — of the AI boom.

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