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The Application of Artificial Intelligence at Chinese Digital Platform Giants: Baidu, Alibaba and Tencent

Author

Listed:
  • Jia, Kai
  • Kenney, Martin
  • Mattila, Juri
  • Seppälä, Timo

Abstract

The Chinese digital platform giants – Baidu, Alibaba and Tencent – have quickly risen to be amongst the most notable developers and users of artificial intelligence. One important catalyst for this development has been the so-called Platform Business Group (PBG) strategy used by Chinese digital platform firms. In this strategy a platform firm aims to develop powerful synergies by tightly linking together a number of different platforms it owns so as to offer multiple services to users under its umbrella. By applying the PBG strategy, Baidu, Alibaba, and Tencent are able to exploit enormous multi-faceted datasets on individuals for use in the development of artificial intelligence algorithms. As a result, the Chinese platform giants appear to be taking a somewhat different approach with the development and use of artificial intelligence than their Western counterparts. If the Chinese platform giants succeed in their efforts to expand into the global market, their business strategies will introduce a different threat to the conventional European industries from those challenges already presented by Apple, Amazon, Facebook, Google, and Microsoft.

Suggested Citation

  • Jia, Kai & Kenney, Martin & Mattila, Juri & Seppälä, Timo, 2018. "The Application of Artificial Intelligence at Chinese Digital Platform Giants: Baidu, Alibaba and Tencent," ETLA Reports 81, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:81
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    References listed on IDEAS

    as
    1. Shao, Tianyi & Kenney, Martin, 2018. "Ctrip: China’s Online Travel Platform – Local Giant or Global Competitor?," ETLA Working Papers 58, The Research Institute of the Finnish Economy.
    2. West, Joel & Mace, Michael, 0. "Browsing as the killer app: Explaining the rapid success of Apple's iPhone," Telecommunications Policy, Elsevier, vol. 34(5-6), pages 270-286, June.
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    Cited by:

    1. David Karpa & Torben Klarl & Michael Rochlitz, 2021. "Artificial Intelligence, Surveillance, and Big Data," Bremen Papers on Economics & Innovation 2108, University of Bremen, Faculty of Business Studies and Economics.
    2. Huanhuai Zhou & Hongming Xie & Xiaoping Chen, 2024. "Sustainable Development of Platform Enterprises: A Synthesis Framework," Sustainability, MDPI, vol. 16(11), pages 1-20, May.
    3. Tuzov, Viktor & Lin, Fen, 2024. "Two paths of balancing technology and ethics: A comparative study on AI governance in China and Germany," Telecommunications Policy, Elsevier, vol. 48(10).
    4. Mattila, Juri & Seppälä, Timo & Salakka, Kaisa, 2021. "The Little Engines That Could – Game Industry Platforms and the New Drivers of Digitalization," ETLA Brief 101, The Research Institute of the Finnish Economy.
    5. Vasile MAZILESCU, 2020. "A Helpful Analysis of the Technological Mix based on HPC and Artificial Intelligence for Maintaining Competitiveness in the Business Environment," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 14-21.
    6. Roman Lukyanenko & Wolfgang Maass & Veda C. Storey, 2022. "Trust in artificial intelligence: From a Foundational Trust Framework to emerging research opportunities," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 1993-2020, December.

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    More about this item

    Keywords

    Artificial Intelligence; Platforms; Platform Business Group strategy; Baidu; Alibaba; Tencent;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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