In a significant move spurred by China's Government drive to expand the usage of artificial intelligence (AI) products, five prominent Chinese tech companies, including Baidu and SenseTime Group, have unveiled their AI chatbots to the public. This development follows government approvals and underscores China's aim to compete with the United States in the AI arena.
Leading Chinese online search provider Baidu has introduced its chatbot, Ernie Bot, which bears similarities to ChatGPT, and made it fully accessible to the public. SenseTime, a major player in the AI landscape, has also unveiled its chatbot, SenseChat, with accessibility extended to all users, as confirmed by a SenseTime spokesperson via email.
Additionally, three AI startups—Baichuan Intelligent Technology, Zhipu AI, and MiniMax—have announced their respective public launches of AI chatbots, further enhancing the range of AI-powered conversational agents available in the Chinese market.
Shares in both Baidu and SenseTime surged in Hong Kong trade, with gains of 2.1 percent and 2.3 percent, respectively, in a market that was trading 0.55 percent lower overall.
In contrast to some other nations, China imposes stringent regulations on companies, mandating security assessments and official clearance before the mass-market release of AI products. Recent efforts by Chinese authorities have been aimed at bolstering AI development, recognizing its growing significance in international competition, particularly with the United States.
Reports from Chinese media suggest that a total of 11 firms have received government approvals, including tech giants ByteDance, the owner of TikTok, and Tencent Holdings. However, neither company has responded to inquiries regarding their AI initiatives.
Baidu's CEO, Robin Li, emphasized that by making Ernie Bot widely accessible, the company aims to accumulate substantial real-world human feedback to enhance the chatbot's capabilities. Additionally, Baidu plans to introduce a series of "AI-native apps."
Alibaba's status regarding government approval remains uncertain as of this week. However, an Alibaba Cloud spokesperson informed Reuters that the company had completed filings for its AI model, Tongyi Qianwen, and is awaiting official launch clearance. The spokesperson also expressed expectations that regulators would release a list of approved companies within the coming week.
Securing the first-mover advantage in China's competitive internet industry is deemed crucial. Following the announcement, Baidu's Ernie Bot ascended to the top position in the free app category on Apple's App Store in China.
Analysts anticipate that companies granted approvals will have an edge in fine-tuning their products more swiftly than competitors, cementing their positions in the evolving AI landscape.
OpenAI, renowned for ChatGPT and backed by Microsoft, is reportedly poised to generate over $1 billion in revenue over the next year, according to a report by tech-focused publication The Information.
These approvals were widely anticipated following the implementation of interim rules in China aimed at regulating generative AI products for public use, which took effect on August 15. These regulations have broadened the scope of AI product testing, allowing for increased features and marketing without the need for prior government approval, except for products targeting businesses.
Shawn Yang, an analyst at Blue Lotus Capital Advisors, noted that the government's greenlight for AI products could trigger industry consolidation. He emphasized that the ability to advance in the industry would increasingly hinge on data and technological capabilities.
