Chinese Tech Giants Embrace AI for Online Interactions

China’s leading technology companies are swiftly incorporating artificial intelligence (AI) into their services, a move that’s transforming how millions interact, learn and work online.

Integrating AI, particularly in social media, education and workplace tools, significantly shifts China’s digital economy. As Baidu, Tencent, ByteDance and Alibaba race to leverage large language models (LLMs) and generative AI (GenAI), experts say the trend could redefine commerce and consumer behavior across the world’s second-largest economy.

“AI may become the lifeblood of their ecosystems,” Lars Nyman, chief marketing officer at CUDO Compute, told PYMNTS. “AI’s ability to analyze vast amounts of data in real-time allows for hyper-personalized ad targeting. For instance, WeChat’s AI can predict what you might want to buy before you even know you want it.”

China is the world’s largest online retail market, accounting for nearly half of all global eCommerce transactions. In 2020, the country’s digital marketplace buzzed with activity from over 710 million online shoppers, generating a staggering $2.29 trillion in sales.

AI Changes Social Media and eCommerce

A recent QuestMobile report highlights that tech firms have significantly expanded AI-driven features across their service offerings, capitalizing on the rapid development of LLMs. These companies stand to gain the most by integrating AI into products with large user bases.

This predictive capability is transforming eCommerce and digital marketing. Alibaba’s FinTech affiliate, Ant Group, has seen success with its “intelligent financial assistant” Zhixiaobao, which had nearly 60 million users at the end of June, according to QuestMobile.

Baidu has been integrating its Ernie LLM into various services, including its search engine and online document-sharing service Wenku. “Baidu search now gives AI-generated responses to user queries at the top of the results. Wenku can generate slide decks based on simple text prompts,” Nyman said, adding that these were ranked as the No. 1 and No. 3 most popular AI features in China by aicpb.com.

Chinese officials recently reported that more than 600 million people in mainland China now use large language models, marking a significant milestone in the country’s artificial intelligence sector. The number represents nearly half of China’s population and underscores the rapid adoption of AI technology in the world’s second-largest economy.

The Cyberspace Administration of China (CAC) has approved the release of 188 AI models. The models power apps and services in 20 main areas, including emotional companionship, artistic creation, online shopping and financial services.

AI’s Impact on Productivity and Education

Beyond social media and finance, AI is reshaping office collaboration tools, potentially boosting productivity across China’s business sector. “Chinese tech giants are developing AI-enhanced tools that can automate mundane tasks, predict project bottlenecks, and even draft reports,” Nyman said.

The broader economic implications could be significant, Nyman said, “potentially positioning China at the forefront of AI-driven economic growth.”

Adopting AI in education could have far-reaching effects on China’s future workforce and global competitiveness. “China’s strategic focus on AI in education is about leapfrogging ahead,” Nyman said. “As these AI-educated students enter the workforce, they will bring with them a level of digital literacy and adaptability that could make China an even more serious competitor on the global stage.”

According to the QuestMobile report, the versatility of LLMs has driven the current wave of AI adoption. However, the technology has challenges. GenAI is known to produce false information, and in China, it can generate politically sensitive content. As a result, the country requires government approval for the public release of LLMs.

As Chinese tech giants continue integrating AI across their platforms, the country appears poised for a digital transformation that could reshape its economy and global influence. The race to harness AI’s potential is on, and China’s tech sector is sprinting ahead, with implications that extend far beyond its borders.

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