China's leading technology companies ( BigTech ) are making lucrative profits thanks to significant strides in developing generative artificial intelligence (AI) services.

Alibaba Group's online shopping site Taobao recently introduced a virtual assistant called Duxiaoxiao, powered by Baidu's AI chatbot, Ernie Bot.

Duxiaoxiao virtual shopping assistant is tailor-made to suit each buyer's preferences, providing a personalized shopping experience.

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China's BigTechs Are Going Their Own Way to AI.

Meituan, a popular Chinese delivery service giant, has also entered the generative AI business market with its own chatbot called Wow.

Described as “a community of AI friends for young people,” Wow uses a number of underlying AI models to provide users with a customized chat experience.

Although still in development and in beta, Wow is touted to have the ability to establish personal connections with users through friendly and highly interactive conversations.

These unique AI chatbot products reflect the efforts of Chinese BigTechs to create diverse AI services for both individual users and enterprise customers, despite the increasing costs involved in building and improving AI models and products.

Companies like Baidu and Alibaba are increasingly marketing AI services to a wide range of industries, including information technology, finance, legal, entertainment, transportation, and many others.

Although the share of generative AI to total revenue is still relatively small compared to core businesses, Chinese BigTechs are actively looking to expand the sector's contribution to overall business.

Baidu's Qianfan, a service AI chatbot model, allows customers to access a range of specialized AI chatbot models at competitive prices.

The pricing structure is based on the demand for tokens - units of text that the AI ​​chatbot reads and generates. In addition, Baidu has launched an upgraded chatbot, Ernie Bot 4.0, which is more powerful, with a significantly higher price per unit of 1,000 tokens (about 750 words of text), clearly reflecting the increasing complexity and demand for advanced AI technologies.

In contrast to Baidu's 'pragmatic' pricing, OpenAI currently maintains a monthly fee of $20 for a ChatGPT Plus membership, which allows customers to receive faster responses and access to the large GPT-4 language model.

OpenAI remains confident about ChatGPT's widespread popularity, with over 100 million weekly active users globally.

Through personalized AI chatbots and targeted AI services, China's BigTechs are bringing AI technology to life faster than any other country in the world.

Strict Chinese government regulations and limited approvals for domestic AI services could pose challenges to the growth of AI chatbots in the country.

However, the practical needs and ambitions of Chinese BigTechs to conquer technology will overcome these barriers, expected to revolutionize the user experience, further blurring the lines of interaction between humans and AI.

(according to SCMP)

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