China’s tech giants are eagerly developing consumer AI services, with Alibaba and Baidu at the forefront. This initiative is particularly noteworthy given that Western AI tools like ChatGPT and Bard are not accessible in China.

Multiple AI services are being launched across China

Alibaba’s marketplace Taobao introduced Duxiaoxiao, a digital assistant powered by Baidu’s AI, Ernie Bot. It’s designed to adapt to shopper preferences, exemplifying the trend towards personalized digital services. The service’s popularity is evident, with a significant following and sales within days of its launch.

baidu

Meanwhile, Meituan is carving out its niche with Wow, an AI service that aims to create a virtual community of AI friends for the younger generation. This is still in its infancy but signals a shift towards interactive, youth-oriented AI experiences.

The surge in AI development by Chinese companies comes as they seek to expand beyond traditional sectors into more innovative territories. Yet, these services currently represent a small slice of the revenue pie, which is dominated by core businesses. For instance, Baidu offers access to its AI models at competitive prices, and even launched a subscription-based model for its advanced Ernie Bot 4.0, reflecting the global trend of subscription-based AI services.

These advancements, however, don’t come without challenges. China’s stringent AI regulations could curb the growth and innovation of these services. With only a select few AI chatbots approved by Beijing and strict rules in place, the future landscape of China’s AI endeavors remains uncertain, potentially stifling the country’s ability to compete globally in the personal AI product market. Despite these hurdles, the push for AI innovation within China is a clear indicator of the country’s commitment to playing a significant role in the global tech scene.

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