ByteDance risks throwing away its lead in China’s fierce market for consumer artificial intelligence by monetising too early, according to analysts, after its flagship chatbot Doubao shed millions of users following a sneak peek at paid-subscription tiers.

The assessment follows a 6.1 million drop in Doubao’s monthly active users (MAUs) in May – a rare slump for the app since its 2023 launch – after it teased its first-ever subscription options, according to data released on Wednesday by global AI market tracker Aicpb.com.

The 1.81 per cent month-on-month decline was a “worrying sign” for the TikTok owner in a competitive domestic market where user numbers dictated “everything”, Li Bangzhu, founder of Aicpb.com, said.

“The era of free AI services in China is still far from over, so Doubao definitely might be monetising too early,” Li said.

In early May, ByteDance updated Doubao’s iOS App Store page to reveal new subscription tiers. The standard paid plan starts at 68 yuan (US$10) per month, or 688 yuan per year. The premium “professional” plan was priced at 500 yuan per month, or 5,088 yuan per year.

Despite the subsequent user exodus, Doubao has maintained its status as China’s most popular AI mobile app with 330 million users, according to Aicpb.com.