China has granted its approval for Ant Group, the fintech affiliate of Alibaba, to launch publicly an array of products utilizing generative artificial intelligence (AI). This significant development represents a notable shift in the stance of the Beijing government towards […]
China has granted its approval for Ant Group, the fintech affiliate of Alibaba, to launch publicly an array of products utilizing generative artificial intelligence (AI). This significant development represents a notable shift in the stance of the Beijing government towards Ant Group, which encountered regulatory challenges in 2020 following Jack Ma’s public criticism of the authorities. The approval underscores China’s recognition of the need for innovative local companies like Ant to take the lead in advancing artificial intelligence, particularly in the face of tightened US restrictions on advanced technology exports.
Ant Group has leveraged its large language model, Bailing, to develop applications such as chatbots for customer support and financial assistance. These applications showcase Ant’s disruptive nature, as the company has transformed the banking sector in China through its mobile payment system and online insurance and wealth management platforms. Although the 2020 crackdown disrupted Ant’s initial public offering plans, the government’s acknowledgment of private sector companies like Ant being instrumental in nurturing AI expertise indicates a shift in perspective.
The approval for Ant’s AI-powered products arrives at a crucial juncture for China’s banking industry, as domestic lenders grapple with credit losses stemming from the property crisis. The implementation of AI solutions, aimed at cost-cutting measures, may prove beneficial in marketing, investment advisory services, and anti-money laundering compliance for these lenders. Globally, the banking sector could save up to $340 billion annually through the utilization of generative AI.
While Ant Group and Alibaba faced significant setbacks due to regulatory challenges, including financial penalties and a decline in Alibaba’s stock prices, the approval for the public release of Ant’s AI-powered products signals a potential turning point in their fortunes. China’s recognition of the value of nurturing homegrown innovation and fostering AI expertise suggests that 2023 could bring new and promising opportunities for both Ant Group and Alibaba.