Chinese companies are rapidly developing AI technology that goes beyond simple chatbots, integrating it into various products and services. While AI adoption in China is accelerating, challenges remain in convincing businesses to share proprietary data and utilize AI-generated content commercially.
Last week saw a flurry of releases showcasing Chinese companies' rapid progress in developing artificial intelligence models that rival OpenAI's ChatGPT. Now, many are building upon this foundation to create products that extend beyond the capabilities of a simple chatbot. According to Gartner research director Ben Yan, over 10% of businesses in China are currently utilizing AI, a significant increase from 8% just six months ago.
'We believe that China's AI sector is advancing at a pace comparable to that of the United States,' stated Jo Huang, head of private equity at Raffles Family Office, in an email. Chinese company Baidu revealed on Tuesday that its generative AI-integrated Wenku platform, designed for quickly creating PowerPoint presentations and other documents, has reached 40 million paying users. Revenue has surged by 60% year-over-year as of the end of last year. In recent weeks, the platform has rolled out updated features, including the ability to use AI to generate presentations based on a company's financial filings. On the corporate front, Gartner data and analytics director analyst Ben Yan estimates that over 10% of businesses in China are now using AI, a notable acceleration from the previous 8% six months ago. This represents a faster rate of adoption—the last 2 percentage point increase took over a year, he noted on Wednesday. 'With our clients, we hear more and more success stories,' he said in Mandarin, translated by CNBC. Yan highlighted that AI agents will play a crucial role in accelerating the implementation of this new technology within businesses. AI agents are more advanced than traditional AI models, capable of automating entire processes, from searching to booking, unlike AI models that primarily focus on specific functions like search and summarization. For instance, Tencent plans to integrate AI agents with its messaging and social media app WeChat soon, as CEO Pony Ma revealed to staff in a January 13 speech, according to a copy of the annual address seen by CNBC. The development of Chinese AI applications is also leading to the integration of these features into domestic smartphones. Unlike Apple's AI intelligence functions, which are yet to be implemented on iPhones in China, Chinese smartphone companies like Honor, Xiaomi, and Vivo have successfully enhanced the user experience of AI features. This is attributed to their efforts in improving the efficiency of AI models that can operate on the device without relying heavily on cloud services. The regulatory landscape surrounding AI in China also differs from that of the United States. While AI models require official certification for use in China, incorporating them into applications is significantly easier, according to Alex Lu, founder of Shanghai-based LSY consulting. Lu is currently working on an AI-powered tool that provides companies with daily insights on industry trends and global regulations, similar to a human consultant, and has been testing a free version with potential customers since June 2023. The team aims to charge between 70,000 and 100,000 yuan ($9,660 to $13,790) annually for the product once it's commercially released. However, a larger hurdle lies in convincing companies to grant AI access to proprietary data or utilize AI-generated content for commercial purposes.'I think there's much more caution than Chinese brands because of copyrights and legal issues,' Chris Reitermann, CEO of Ogilvy Asia-Pacific and Greater China and president of WPP China, told CNBC last year. He explained that clients attempted to use AI for campaigns but encountered compliance issues that prevented project launches. Reitermann added, 'Local brands, they may be a little less worried about these issues, more trial and error.'One example of this burgeoning AI landscape is the platform Accio, which helps businesses discover wholesale products using text or image prompts. It provides analysis on the products' consumer popularity and projected profitability, significantly reducing research time from weeks to a day or two, according to Mike McClary, who gained early access to Accio. McClary, CEO of amazing.com, boasts over $1 million in annual e-commerce sales and is based outside of St. Louis, Missouri. He stated that platforms like Alibaba.com and Amazon, which he previously utilized, involved sifting through hundreds or thousands of results and individually negotiating with five to ten suppliers before settling on one
AI China Chatbots Technology Innovation Business
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chinese Companies Race Ahead with AI Applications Beyond ChatbotsChinese companies are rapidly developing AI-powered products that go beyond chatbot functionality. With a growing number of businesses adopting AI, China's AI sector is advancing at a pace comparable to the United States. Companies like Baidu are integrating AI into their platforms, while startups are leveraging AI for tasks like market research and product development. This rapid development reflects differences in regulatory scrutiny and the types of technology being created compared to the US.
Read more »
Tencent Added to US Defense Department's 'Blacklist' of Chinese Military CompaniesThe U.S. Department of Defense (DOD) has added Chinese tech giant Tencent Holdings, Ltd. to its 'blacklist' of companies that allegedly aid the Chinese military. The DOD released its annual updated list of firms operating in the U.S. deemed to be 'Chinese Military Companies', which is a requirement under Section 1260H of the Mac Thornberry National Defense Authorization Act (NDAA) of FY2021. Tencent's inclusion on the list, which also includes 134 other companies, serves as a warning to American companies against working with these Chinese firms. While the designation doesn't mean immediate bans, it can negatively impact their reputations.
Read more »
US Considers Drone Restrictions on Chinese Companies Over Security ConcernsThe US Commerce Department is exploring new rules that could limit or ban Chinese drones due to national security risks. Concerns stem from the potential for adversaries to remotely access and manipulate these devices, exposing sensitive US data. Public comment is being sought on the proposed restrictions.
Read more »
US designates Tencent and CATL as Chinese military companiesThe US Department of Defense has added tech giant Tencent and electric vehicle battery maker CATL to its list of Chinese military companies.
Read more »
US Adds More Chinese Companies to Military ListThe US Department of Defense has added several more Chinese companies, including battery maker CATL and tech giant Tencent, to its list of companies considered to pose a national security risk. Both companies have denounced the inclusion, stating they are not involved in military activities and have no impact on their business operations. The DoD will prohibit the procurement of goods and services directly from these entities in June 2026, and indirectly in June 2027.
Read more »
US Adds Tencent, Other Chinese Tech Giants to Military Companies ListThe US Defense Department has added Chinese tech giants including Tencent Holdings, CATL, Changxin Memory Technologies, Quectel Wireless and Autel Robotics to its annual list of Chinese military companies. The designation, which has no immediate impact on business operations, has triggered a stock market sell-off for the listed companies. Tencent and CATL have called the inclusion a mistake, stating they are not involved in military activities. This move further escalates tensions between the US and China.
Read more »