Chinese Companies Utilize Artificial Intelligence for Various Applications
Baidu Introduces AI-Powered Advertising Platform
Chinese search engine giant Baidu recently unveiled a platform called QingGe, which enables the creation of AI-powered advertising campaigns. This platform is similar to Google’s AI-powered ads and has shown promising results during early testing. Corporate testers reported a 20% increase in conversion rates, achieved in a fraction of the time typically required by advertising agencies.
Nomura analysts state that the commercialization process for large language models (LLMs) is already underway in China. They also mention that regulatory approval for more than 10 LLMs to be accessible by the public has removed obstacles to monetization. This indicates a growing trend in the adoption of AI technologies in the country.
Tencent Integrates AI Model into Advertising and Messaging Apps
Another Chinese company, Tencent, has integrated its AI model into advertising content creation and its own video conferencing app, similar to Zoom. Additionally, Tencent has opened the waitlist for a chatbot called ChatGPT, which is available within its popular social messaging app WeChat. WeChat, locally known as Weixin, boasts over 1 billion users, demonstrating the advantage of China’s large user base.
China’s ability to rapidly increase internet penetration and create an online ecosystem, ranging from e-commerce platforms like Taobao to bike-sharing services, has contributed to the country’s advantage in the AI market. Chinese consumers have shown openness and enthusiasm towards new products, as demonstrated by the successful collaboration between Luckin Coffee and Kweichow Moutai, which resulted in the sale of millions of spiked lattes.
Potential and Challenges of China’s AI Applications
While China’s AI applications are still developing, they have the potential to catch up with more advanced models like ChatGPT. Tony Zhang from CLSA mentioned that certain fields, such as word processing integration, commercial advertising, and consulting, could be the first areas where real commercial use of AI tools emerges.
Beijing’s approval of public-facing AI applications, like Baidu’s Ernie bot, allows for wider usage in China. Alibaba Cloud recently announced the opening of its large language model Tongyi Qianwen to the public, collaborating with brands like Taobao and Oppo to create innovative applications.
Revenue Generation through Generative AI
Generative AI and large language models have contributed significantly to the revenue of companies like SenseTime, accounting for 20% of their earnings in the first half of 2023. Testing and implementing AI technologies can generate revenue for businesses.
Nomura analysts have a neutral rating on Baidu and a buy rating on Tencent, reflecting their positive outlook on these companies’ AI initiatives.
ByteDance Sets an Example in AI Applications
ByteDance, the parent company of TikTok and its Chinese counterpart Douyin, showcases the potential impact of AI-powered apps on business efficiency and reach. Brands leveraging these platforms can quickly gauge consumer preferences and influence purchasing decisions more effectively compared to traditional methods like surveys.
In China, where millions of internet users cannot easily access platforms like ChatGPT or Google, AI-powered applications provide an essential tool for both businesses and consumers.
Chinese Companies Utilize Artificial Intelligence for Various Applications
Baidu Introduces AI-Powered Advertising Platform
Chinese search engine giant Baidu recently unveiled a platform called QingGe, which enables the creation of AI-powered advertising campaigns. This platform is similar to Google’s AI-powered ads and has shown promising results during early testing. Corporate testers reported a 20% increase in conversion rates, achieved in a fraction of the time typically required by advertising agencies.
Nomura analysts state that the commercialization process for large language models (LLMs) is already underway in China. They also mention that regulatory approval for more than 10 LLMs to be accessible by the public has removed obstacles to monetization. This indicates a growing trend in the adoption of AI technologies in the country.
Tencent Integrates AI Model into Advertising and Messaging Apps
Another Chinese company, Tencent, has integrated its AI model into advertising content creation and its own video conferencing app, similar to Zoom. Additionally, Tencent has opened the waitlist for a chatbot called ChatGPT, which is available within its popular social messaging app WeChat. WeChat, locally known as Weixin, boasts over 1 billion users, demonstrating the advantage of China’s large user base.
China’s ability to rapidly increase internet penetration and create an online ecosystem, ranging from e-commerce platforms like Taobao to bike-sharing services, has contributed to the country’s advantage in the AI market. Chinese consumers have shown openness and enthusiasm towards new products, as demonstrated by the successful collaboration between Luckin Coffee and Kweichow Moutai, which resulted in the sale of millions of spiked lattes.
Potential and Challenges of China’s AI Applications
While China’s AI applications are still developing, they have the potential to catch up with more advanced models like ChatGPT. Tony Zhang from CLSA mentioned that certain fields, such as word processing integration, commercial advertising, and consulting, could be the first areas where real commercial use of AI tools emerges.
Beijing’s approval of public-facing AI applications, like Baidu’s Ernie bot, allows for wider usage in China. Alibaba Cloud recently announced the opening of its large language model Tongyi Qianwen to the public, collaborating with brands like Taobao and Oppo to create innovative applications.
Revenue Generation through Generative AI
Generative AI and large language models have contributed significantly to the revenue of companies like SenseTime, accounting for 20% of their earnings in the first half of 2023. Testing and implementing AI technologies can generate revenue for businesses.
Nomura analysts have a neutral rating on Baidu and a buy rating on Tencent, reflecting their positive outlook on these companies’ AI initiatives.
ByteDance Sets an Example in AI Applications
ByteDance, the parent company of TikTok and its Chinese counterpart Douyin, showcases the potential impact of AI-powered apps on business efficiency and reach. Brands leveraging these platforms can quickly gauge consumer preferences and influence purchasing decisions more effectively compared to traditional methods like surveys.
In China, where millions of internet users cannot easily access platforms like ChatGPT or Google, AI-powered applications provide an essential tool for both businesses and consumers.