ByteDance's Doubao Chatbot Rockets to Global No. 2
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ByteDance's AI chatbot, Doubao, has surged to become the second most widely used AI application globally, fueled by the rapid integration of generative AI into daily life in China, reports Nikkei Asia. The app, launched in June 2023, offers conversational and advisory services through diverse virtual avatars, catering to a wide range of user needs.
Doubao's success is highlighted by its October user base of 51.3 million in China, securing the top spot among domestic AI apps, according to Chinese research firm Aicpb.com. Globally, it ranks second, though significantly behind ChatGPT's 258.16 million users.
Unlike many global top 10 AI apps that rely on OpenAI's models, Doubao utilizes homegrown AI models, showcasing China's strides in developing its own AI technology. The app's affordability is also a key factor, with commercial use of its underlying model costing less than 1% of its US rival, ChatGPT.
The integration of AI into various applications is rapidly transforming daily life in China. Ant Group, an Alibaba affiliate, launched Zhixiaobao, an AI assistant that connects to Alipay and other apps, enabling diverse functionalities such as hailing taxis and paying bills.
While China's AI technology is still considered to lag behind the US, the country is leading in developing practical applications. A survey by Vention shows that China's AI adoption rate is nearly 60%, significantly higher than the roughly 30% in the US and other advanced economies.
The widespread adoption of AI in China, coupled with the relatively low cost of Doubao, is driving its rapid growth. However, concerns remain regarding data privacy, as many Chinese users readily share personal information with AI apps.
"Institutionalized privacy protections and anonymization technology have become more widespread, but Chinese people are resigned to the idea that their data will be leaked because of the frequency of such leaks in the past," said Li Zhihui of Nomura Research Institute.
The intense competition in China's AI market, with over 5,700 AI companies as of June 2023, is driving down prices, suggesting that profitability remains a challenge for many players. The potential for Chinese AI companies to expand overseas, while requiring compliance with international regulations, presents significant opportunities for growth.