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Yang Wei, an associate professor at China Europe International Business School (CEIBS), offered her views on Lao Gan Ma's application of AI: a company using AI to improve efficiency does not mean consumers will perceive better product value. According to a 36Kr·AI report, Lao Gan Ma's 2025 revenue was about 5.4 billion yuan, and in the same year its AI visual quality inspection system was fully launched, bringing the defect rate for key-process products down to 0.02% and achieving 100% traceability of core raw materials. Yang Wei noted that no public data shows how much revenue AI has contributed; she also cautioned that Lao Gan Ma once sparked a taste controversy by adjusting the source of its chili pepper procurement, and that if the company only emphasizes saving labor without explaining how quality is guaranteed, it is easy for people to worry that the familiar taste will change.
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Lao Gan Ma Uses AI: Costs Saved, but Can It Keep the Flavor?Developments
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Oct 30
36Kr · AI
Lao Gan Ma Uses AI: Costs Saved, but Can It Keep the Flavor?
In 2025, Lao Gan Ma's revenue was about 5.4 billion yuan. In the same year, its AI visual quality inspection system was fully launched, reducing the defect rate for key processes to 0.02% and achieving 100% traceability of core raw materials. Yang Wei, an associate professor at China Europe International Business School (CEIBS), noted that there is no public data showing how much revenue AI has contributed, and that a company using AI to improve efficiency does not mean consumers will perceive better product value. She cautioned that Lao Gan Ma once sparked a taste controversy by adjusting its source of chili pepper procurement; if the company only emphasizes labor savings without explaining how quality is guaranteed, it is easy for people to worry that the familiar taste has changed.