Chinese tech powerhouse Baidu recently announced that its artificial intelligence (AI) product, Ernie bot, has exceeded 100 million users. This success raised Baidu shares 3 percent higher in U.S. trading, maintaining the company’s positive trajectory throughout 2023. However, the tech giant did not specify whether these figures represented active users or the cumulative count over a particular period.
Multilingual dominance
In comparison with Microsoft-backed OpenAI’s ChatGPT, Baidu’s Ernie bot has demonstrated its versatility by accommodating users in both English and Chinese. Unlike ChatGPT, which is not officially available in China, Baidu’s Ernie bot seamlessly employs the Chinese language. To access Ernie bot, users need to register with a Chinese mobile number. The app is called “Wenxinyiyan” in Mandarin Chinese.
Regulatory hurdles
Although Baidu released Ernie bot in March, regulatory approval for a widespread rollout was only granted in late August. This delay placed Baidu in the company of other local players who received approval simultaneously. ByteDance, the parent company of TikTok, introduced its chatbot Doubao, securing the second position in the free-to-use productivity category on Apple’s app store in China as of today, Friday, morning.
Competitive landscape
While Tencent and Alibaba have predominantly focused on AI products for business partners, both tech giants have not shied away from offering chatbots to the public in China. Tencent’s chatbot seamlessly integrates into its widely popular WeChat messaging and social media app. This strategic move has allowed Tencent to maintain a strong presence in the chatbot arena and act as a competitor for Baidu’s Ernie bot in China.
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Monetization strategies
In a bid to monetize their advanced chatbot offerings, both Baidu and OpenAI have adopted distinct pricing models. Baidu initiated a subscription fee of approximately $8 per month for its most advanced version of Ernie bot in November. In comparison, OpenAI’s ChatGPT charges users $20 per month to access its latest available model. The competition between these pricing strategies will likely shape the future landscape of AI-powered chatbots.
Baidu’s Ernie bot has emerged as a fierce player in the global AI chatbot market. It is showcasing its ability to transcend language barriers and attract a massive user base. As the company continues to navigate regulatory landscapes and refine its monetization strategies, the success of Ernie bot signifies a new era in AI-driven conversational technology.
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