Chinese AI Applications Expand Beyond Chatbots

Chinese companies such as DeepSeek and ByteDance are rapidly advancing artificial intelligence models, moving beyond chatbots to explore broader applications.

Recent developments highlight the growing sophistication and adoption of AI technology in China.

Generative AI in Action
Baidu’s AI-integrated Wenku platform, which streamlines the creation of presentations and documents, reached 40 million paying users by the end of 2023, with revenue up 60% year-over-year. New features, such as AI-generated presentations based on financial filings, were launched last week.

Corporate adoption of generative AI is also accelerating. Ben Yan, director analyst at Gartner, reported that over 10% of Chinese businesses now use generative AI, up from 8% six months ago—a faster adoption rate compared to prior growth. Yan highlighted AI agents, which automate complex tasks from search to booking, as a key driver of this expansion.

AI Agents Enter the Market
Advanced AI agents are set to scale in China. Tencent plans to integrate them into its WeChat platform, according to CEO Pony Ma. These agents, like OpenAI’s “Operator,” aim to handle tasks such as restaurant reservations seamlessly.

Local AI Innovation and Compliance
Chinese companies are also embedding AI into domestic smartphones. Brands like Honor, Xiaomi, and Vivo have enhanced on-device AI features that operate efficiently without heavy reliance on cloud services, catering to regional consumer preferences.

However, regulatory hurdles persist. AI models in China require official certification, delaying launches like Baidu’s Ernie bot, which only went public in August 2023, nearly a year after ChatGPT’s debut. Despite this, applying certified models in specific tools or platforms faces fewer restrictions.

Challenges in Adoption
Convincing businesses to share proprietary data or use AI-generated content commercially remains a challenge. While multinational corporations are cautious due to copyright and legal concerns, local brands are more willing to experiment, according to Chris Reitermann, CEO of Ogilvy Asia-Pacific and Greater China.

Global Expansion
China’s AI applications are also reaching global markets. Alibaba’s Accio, an AI-powered search engine for product sourcing, now serves 500,000 small businesses. Launched in November, Accio reduces research time from weeks to days by providing targeted product suggestions and profitability insights.

Mike McClary, a seasoned e-commerce entrepreneur, praised Accio for streamlining the supplier negotiation process, calling it a “gamechanger” for product sourcing and envisioning AI’s future role in ad creation.

These developments underscore China’s ambition to lead in AI innovation, with applications transforming industries both locally and globally.