Ant Group to hike capital outlay for AI

Ant Group will step up investments in artificial intelligence and data elements in the next 10 years, with a key focus on distributed database, blockchain, privacy computing and green computing technologies, and provide AI-powered intelligent services for more enterprises, according to the Chinese financial technology company.

He Zhengyu, chief technology officer of Ant Group, said the company will strive for technological innovation and invest heavily in AI technology represented by large language models, while bolstering sharing of data and unleashing the value of massive data resources.

The company recently set up its innovation and technology headquarters in Beijing at a new campus called T-Space, marking a significant move in its expansion into the high-tech sector.

At the T-Space launch ceremony, Eric Jing, chairman and CEO of Ant Group, said the company will make full use of Beijing's advantages in talent and technological innovation, increase investments and usher in a new chapter for Ant.

Ant Group has also established a new subsidiary in Beijing which offers intelligent customer services, marketing, operation, and technology research and development for enterprise clients.

This is aimed at helping these clients improve management efficiency and reduce costs via AI-powered technology.

The new subsidiary is part of Ant's heightened efforts to promote the commercialization and industrial application of AI technology, and help enterprises achieve digital and intelligent transformation and upgrade.

The company's technological research institute, which is also located in Beijing, mainly concentrates on making breakthroughs in core and cutting-edge technologies related to data elements and AI, such as intelligent robots, data storage and high-performance real-time graphic computing technology.

Technology is an important strategic direction for Ant. For instance, OceanBase, which was launched in 2010, serves as an open-source distributed relational database that Ant developed and uses in managing huge amounts of data collected through its mobile payment app Alipay.

As of the end of June, Ant employed more than 3,000 people in Beijing, with over 2,000 employees dedicated to technical research and development.

With the optimization of generative AI and deep learning algorithms, AI technology could be used to tackle more complex problems and is becoming an important tool to drive the innovation of enterprise service models, experts said.

According to a report by global market research company International Data Corp, China's spending on AI will likely hit $38 billion in 2027, and account for about 9 percent of the global market, with a compound annual growth rate of about 25 percent from 2023 to 2027.

The consultancy noted that most enterprises will experience a notable shift in the weight of technology investments toward AI implementation and adoption of AI-enhanced products and services.

Kitty Fok, managing director of IDC China, said Chinese companies respond faster to AI deployments compared to their foreign counterparts, adding that generative AI technology is driving digital transformation across industries, including manufacturing, transportation, energy, healthcare and retail.

Jiang Han, a senior analyst at market consultancy Pangoal, said AI technology has huge application potential in the enterprise service segment as it can provide customers with more accurate and personalized services by analyzing their behaviors, help companies optimize and adjust strategies, and improve their business performance.

fanfeifei@chinadaily.com.cn