China Allows Chatbots, Tech Stocks Jump

9 Min Read
China Introduces Chatbots

Five major tech firms in China, including Baidu Inc and SenseTime Group, have just released public versions of their artificial intelligence (AI) chatbots. This action, which has been given the green light by the Chinese government, shows how serious China is about competing with the United States in the artificial intelligence market.

AI Chatbots are Made Public by Baidu and SenseTime

Baidu, China’s most popular search engine, has made its artificial intelligence chatbot, Ernie Bot, available to everyone. The well-known AI firm SenseTime has made its chatbot, SenseChat, available to everyone. Launches like these show that businesses are making an effort to meet the rising demand for AI chatbots by offering cutting-edge options to customers.

In addition to Baidu and SenseTime, the public was also introduced to chatbots developed by AI startups Baichuan Intelligent Technology, Zhipu AI, and MiniMax. The importance of artificial intelligence chatbots is growing in China, and this effort shows that.

Rules and Approval from the Government

China is unique in that it mandates security reviews and approval from authorities before companies can release AI products to the general public. The government takes a proactive stance to guarantee that AI products are safe and legal.

The government has recently shown its support for the advancement of AI technology by approving 11 companies, including Baidu and SenseTime. Companies like ByteDance (TikTok’s parent company) and Tencent Holdings (also a legitimate business) are allowed to join. These greenlights demonstrate China’s determination to encourage innovation and advance the country’s artificial intelligence sector.

Influence on the Market and the Mood of Investors

Baidu and SenseTime’s launches of artificial intelligence chatbots have boosted their stock prices significantly. Both Baidu and SenseTime saw share price increases of 2.1% and 2.3%, respectively, during trading in Hong Kong. This reflects the market’s optimism regarding the future success and expansion of businesses utilizing artificial intelligence chatbots.

Market Competition and the Benefits of Being an Early Adopter

In China’s fiercely competitive internet market, being first to market is crucial. For example, Baidu’s Ernie Bot skyrocketed to the top of the free apps chart on Apple’s App Store in China. Companies that get in first can use user feedback to improve their products, giving them a leg up on the competition.

Morningstar analyst Kai Wang emphasized the value of early approval, noting that it allows businesses to improve their products ahead of the competition. Companies with strong data and technological capabilities will likely emerge as industry leaders as the AI market continues to develop.

The Government’s Role in AI Industry Consolidation

The approval of artificial intelligence products by the Chinese government may cause a wave of mergers and acquisitions. Many businesses have hastily entered the market for large language models, but only those with strong data and technological capabilities will succeed in the long run, according to Shawn Yang, an analyst at Blue Lotus Capital Advisors.

With the government investing in AI research and the demand for superior AI products, it’s a good time to be an AI-focused business. As a result of this merger, the AI industry in China should become more dynamic and competitive.

Testing Procedures and Compliance with Regulations

Before releasing AI products to the general public in China, businesses must first undergo security reviews and receive official approval, per the country’s AI regulations. Before now, companies could only launch limited public trials of AI products. Companies can now conduct more extensive tests of their AI products, release updates with new features, and launch widespread advertising campaigns thanks to the new rules.

These governing measures guarantee that AI products are of adequate quality, safety, and privacy. The rules help advance AI in China by letting businesses cater to a wider customer base.

Expansion and Future Goals

In addition to introducing Ernie Bot, Baidu has stated its intention to roll out a number of “AI-native apps.” This business decision is in line with Baidu’s long-term goal of utilizing AI technology to offer users cutting-edge answers in a wide range of fields.

Following regulatory clearance, another tech giant in China, Alibaba, plans to release its own artificial intelligence model called Tongyi Qianwen. Companies are racing to get their artificial intelligence products to market so they can cash in on the surging demand for AI-powered products and services.

In conclusion, major Chinese tech firms like Baidu and SenseTime have recently released AI chatbots that demonstrate the country’s continued leadership in the field of artificial intelligence (AI) innovation. Thanks to the government’s backing and the regulatory framework in place, the AI industry is flourishing.

The success of Chinese AI businesses in the face of competition from the United States will depend on factors such as first-mover advantage, government approval, and industry consolidation. Baidu, SenseTime, and other companies are positioned to take advantage of this expanding market now that their AI chatbots are available to the general public.

See first source: Reuters


Q1: Which major tech companies in China have recently released public versions of their AI chatbots?

A: Baidu Inc and SenseTime Group, along with AI startups Baichuan Intelligent Technology, Zhipu AI, and MiniMax, have released public versions of their AI chatbots.

Q2: What does the release of these AI chatbots indicate about China’s approach to AI competition?

A: The release of AI chatbots by these companies reflects China’s commitment to competing with the United States in the AI market and its willingness to promote cutting-edge AI technology.

Q3: How does China’s government ensure the safety and legality of AI products?

A: China mandates security reviews and approval from authorities before companies can release AI products to the public, demonstrating the government’s proactive stance on AI product quality and safety.

Q4: Which major tech companies received approval for their AI products from the Chinese government?

A: Baidu, SenseTime, ByteDance (TikTok’s parent company), and Tencent Holdings were among the 11 companies approved by the Chinese government to release AI products.

Q5: How did the release of AI chatbots affect the stock prices of Baidu and SenseTime?

A: The launch of AI chatbots led to significant stock price increases for Baidu and SenseTime, reflecting investor optimism about the future success of AI-driven businesses.

Q6: Why is being an early adopter important in China’s tech market?

A: In China’s competitive tech market, being the first to market is crucial for gaining a competitive edge and receiving valuable user feedback for product improvement.

Q7: How might the government’s approval of AI products impact industry consolidation?

A: Government-approved AI products may lead to mergers and acquisitions as only businesses with strong data and technological capabilities are likely to succeed in the long run.

Q8: What role does the government play in the expansion of the AI industry in China?

A: The government’s investment in AI research and the demand for superior AI products are driving expansion and competition in the AI industry in China.

Q9: How have China’s AI regulations changed regarding the release of AI products?

A: Previously, companies could only conduct limited public trials of AI products. Now, businesses can undergo security reviews and launch more extensive tests, updates, and advertising campaigns.

Q10: What are Baidu’s future plans in the AI field?

A: Baidu intends to roll out “AI-native apps” and aims to use AI technology to provide advanced solutions across various fields.

Featured Image Credit: NII; Unsplash – Thank you!

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Becca Williams is a writer, editor, and small business owner. She writes a column for and many more major media outlets.