- Ant Group, backed by Alibaba, launched the Zhixiaobao app, an AI-powered life assistant.
- The app helps users with tasks like ordering food, hailing taxis, booking tickets, and accessing Alipay.
- Launched in Shanghai amid growing AI competition from global tech giants like Google, Meta, and Microsoft.
- Zhixiaobao is powered by Ant’s BaiLing foundation model, an AI large language model approved by Chinese regulators.
- Ant Group’s business has faced restructuring and financial fines following the 2020 IPO block by Chinese authorities.
- Ant’s profits have fallen 10%, and its valuation has dropped over 70% since the canceled IPO.
- Additional AI services were announced for merchants, healthcare providers, and insurance companies.
Main AI News:
Ant Group, the fintech firm backed by Alibaba, has entered the AI arena with the release of its Zhixiaobao app. This “life assistant” enables users to perform daily tasks such as meal ordering, taxi hailing, ticket booking, and finding local dining or entertainment options. Integrated with Alipay, the app streamlines access to digital payment services.
Launched in Shanghai, Zhixiaobao arrives as global tech giants like Google, Meta, and Microsoft intensify their investment in AI, focusing on developing chatbot-driven solutions to enhance consumer experiences.
“Alipay is committed to harnessing AI’s potential to improve the user experience, ensuring that AI assistants like Zhixiaobao become valuable tools in everyday life for all,” said Ant Group President Cyril Han in a press release.
Since Chinese regulators blocked its 2020 IPO, Ant has had to reshape its operations to comply with new financial oversight requirements. In 2023, the company was fined 7.1 billion yuan (US$984 million) for regulatory violations following the departure of its founder, Jack Ma. According to Bloomberg, Ant also saw a 10 percent drop in profits during the first quarter of 2023, with its valuation dropping more than 70 percent since the halted IPO.
Zhixiaobao is powered by Ant Group’s BaiLing foundation model, an AI-based language system approved by the Chinese government last year. This app is the latest in a series of AI-driven products from Ant as the company seeks to deepen its presence in the AI space.
At the Shanghai event, Ant Group also unveiled new AI-powered services for merchants, healthcare providers, and insurance firms, signaling the company’s broader ambitions in AI innovation across industries.
Conclusion:
Ant Group’s move into AI with the launch of Zhixiaobao signals a strategic shift aimed at regaining momentum after facing significant regulatory and financial setbacks. By integrating AI into its ecosystem, mainly through Alipay, Ant is positioning itself to compete in an increasingly AI-driven market. This development reflects a broader trend where leading tech companies focus on AI-powered solutions to enhance user engagement and service efficiency. For the market, this suggests rising competition in AI innovation, with companies seeking to leverage artificial intelligence to drive new revenue streams and solidify their foothold in key sectors like finance, retail, and healthcare. Ant’s push could also lead to further AI advancements and regulatory scrutiny in China’s tech landscape.
