The podcast discusses Baidu's earnings and the future of AI development in China. They also explore challenges in monetizing AI for search engines. Additionally, they cover economic challenges in China, success in wealth management, and the AI revolution in tech stocks.
Baidu faces AI-related losses impacting profit, while challenges in monetizing search services persist due to consumer habits.
VR training platforms benefit surgeons, enhancing skills through muscle memory development for improved performance in real surgeries.
Deep dives
VR Training Platforms for Surgeons
Surgeons are benefiting from VR training platforms like those developed by fundamental VR and Orbus International. These platforms allow surgeons to repeatedly practice skills, leading to the development of muscle memory, enhancing their performance before operating on real patients.
Baidu's Operating Income and AI Business
Baidu's quarterly adjusted operating income surpassed expectations due to cost control, but its AI-related losses deepened, leading to a 7.1% decrease in adjusted profit. The company faces challenges as its core search business, primarily advertising-driven, is influenced by economic fluctuations, resulting in potential margin pressure.
Challenges of AI Monetization and Consumer Adoption
Implementing AI in search engines like Baidu and Google shows promise in enhancing search capabilities, but challenges lie in monetizing these services. Consumer habits of receiving free services hinder prospects of consumer payment for enhanced searches. Similarly, corporate willingness to pay for advertising based on improved search outcomes remains uncertain.
AI in China and Data Limitations
In China, AI models are challenged by limited Chinese language data, encompassing only about 10% of worldwide information. Censorship restrictions and access to training data impact the accuracy and effectiveness of AI technologies like chatbots. Baidu leads in chatbots in China, but financial sustainability in the AI sector remains uncertain amidst potential data limitations.
Robert Lea, Senior Analyst at Bloomberg Intelligence, joins the program to discuss Baidu's earnings. Plus, the future of AI development for Baidu and other top China tech firms. John Liu, Bloomberg Executor Editor in Beijing, sits down with us to discuss China's Chinese regulators are taking steps to gradually shrink "Direct Market Access” products for quantitative funds. Dan Ives, Managing Director and Senior Equity Analyst at Wedbush Securities, joins the program to discuss his perspective on APAC markets