Chinese companies Baidu, SenseTime Group launch AI chatbots 

Chinese tech companies, including Baidu Inc and SenseTime Group, have launched their AI chatbots to the public after receiving government approval. This move comes as China aims to expand the use of AI products in the face of competition with the United States. Baidu introduced its ChatGPT-like chatbot, Ernie Bot, to the public, while SenseTime made its chatbot, SenseChat, fully available to users. Baichuan Intelligent Technology and Zhipu AI, two AI startups, also announced similar public launches.

Shares of Baidu and SenseTime saw positive gains in early Hong Kong trade, rising by 3.1 per cent and 2.7 per cent respectively, amid a broader market that was trading slightly lower.

AI development

China differentiates itself from other countries by requiring companies to undergo security assessments and obtain clearance before releasing mass-market AI products. Government efforts have intensified to support AI development as it becomes a focal point of competition with the US. Reports indicate that 11 firms, including ByteDance and Tencent Holdings, have received government approvals for their AI products.

While companies such as Baidu and SenseTime gained approval for their chatbots, other tech firms working on large AI language models, like Alibaba Group, reportedly have not obtained government clearance. The approvals were expected following China's introduction of interim rules to regulate public use of generative AI products, which took effect on August 15. These rules have expanded companies' ability to test AI products with more features and marketing, sparking anticipation of potential industry consolidation as only firms with strong data and technology capabilities might thrive in the long run.

Shawn Yang, an analyst at Blue Lotus Capital Advisors, said the government's move to greenlight AI products could spark consolidation in the industry.

"Many people were rushing into the large language model business," he said, "but the industry may soon consolidate. Only those with data and tech capability will be able to push forward.

(With Reuters Inputs)