Chinese AI Application Developers Eye Overseas Market

As the domestic internet market approaches saturation, Chinese entrepreneurs are increasingly targeting international markets, creating new opportunities for AI developers.

TMTPOST -- In the remote high-altitude grasslands of Hongyuan county in Sichuan province, where the air is thin and the terrain rugged, developers from Southwest Minzu University have pioneered a unique artificial intelligence (AI) application.

Tasked with the mission impossible of determining yak weight and health without weighing the animals, these innovators have turned to AI.

By collecting a vast dataset of yak images and training a keypoint detection model with TensorFlow, they have developed a lightweight TensorFlowNet model that can estimate yak weight from a simple photo.

This breakthrough helps herders monitor and manage their livestock more effectively, underscoring the transformative potential of AI in diverse and remote applications.

ChatGPT has set a high bar for AI innovation, with the tech industry fervently searching for the next "killer app" that can leverage large AI models to revolutionize various sectors. The compelling use case from Southwest Minzu University exemplifies the kind of groundbreaking application that AI technology providers are eager to see. These providers are actively recruiting developers to join the race to create revolutionary AI applications, seeking to expand and enrich their AI ecosystems.

The current surge in AI innovation has created significant opportunities for developers, particularly in three major areas: transforming the Web platform, advancing edge AI, and expanding AI applications on a global scale.

As the domestic internet market approaches saturation, Chinese entrepreneurs are increasingly targeting international markets, creating new opportunities for AI developers.

Talkme app, developed by Tiantian Jinbu, is a good example. It has achieved significant success overseas, with high rankings in app stores and a strong daily return on investment (ROI).

"Talkme often ranks at the top of the Education category on the App Store and Google Play, with nearly 100,000 registered users worldwide," said Jia Zijian, the CEO of Tiantian Jinbu. Talkme uses AI to create personalized language learning paths for users, matching them with the most suitable scenarios for their learning goals, such as work, travel, or interviews.

Regarding its performance, Jia said that Talkme is currently generating positive returns daily, with a daily ROI greater than one, indicating that the business model runs well.

Data shows that there are now over 20,000 AI-related productivity tools available on Google Play and the App Store. Zhang Jun, Vice President of Marketing Insights and Solutions at Google Greater China, also noted that this year, in terms of overseas expansion, two niche industries have seen rapid growth: short dramas and AI-related productivity tools, with significant participation from Chinese developers.

Maple Interactive's ReelShort App is a good case among Chinese short drama platforms venturing into the overseas markets.

With content from partners included, the entire ReelShort platform saw more than a tenfold increase in Q1 2024 compared to the same period last year, said Nan Yapeng, Vice President of CrazyMapleStudio (Maple Interactive).

By the end of June, ReelShort's overseas gross merchandise value had exceeded $100 million, with another record-breaking performance in July, Nan added.

"Compared to the growth rate of domestic short dramas, the overseas market's growth rate is much higher, and user willingness to pay is also higher than in China. The app format naturally makes user retention easier than domestic mini-programs, and profit margins will be higher in the long run," said Nan.

A report surveying the executives of 375 Chinese overseas companies showed that 88% of respondents are exploring how to use AI in their businesses, with 81% already in the advanced planning stages for AI applications.

"I would describe the AI startup ecosystem in China as genuinely applying artificial intelligence. When a business idea emerges, Chinese entrepreneurs can quickly experiment and bring it to market, but this process is done with an extremely responsible and cautious attitude," said Sami, Global Head of Google's Overseas Accelerator Program, in evaluating Chinese AI entrepreneurship.

However, while AI application expansion is an inevitable trend, companies should assess their own data and infrastructure investment before taking action. "How much effort and determination are needed to pursue this? After implementing AI, how will ROI be measured? Ultimately, a thorough financial analysis is necessary. When ROI has not been validated, there are still many uncertainties," industry experts said.

Ranjit Atwal, Senior Research Director at Gartner, also commented on the challenges that may arise with the growing popularity of AI, saying "The adoption of generative AI features and AI processors on devices will soon become a standard requirement for technology vendors. As these become more common, vendors will find it increasingly difficult to differentiate themselves from competitors, making it harder to create unique selling points and drive revenue growth."

Despite these challenges, AI pioneers continue to push forward. Just before the publication of this article, Chinese customer relationship management (CRM) software vendor Fxiaoke announced a new round of $75 million in strategic financing to strengthen its internationalization and AI capabilities, accelerating the evolution from business-oriented CRM to intelligent CRM.

Similarly, Chinese SaaS marketing service provider Weimob recently highlighted its focus on "AI and international expansion" in its latest financial report.

 

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