---
title: "The Application of Artificial Intelligence at Chinese Digital Platform Giants: Baidu, Alibaba and Tencent"
authors:
  - name: "Jia, Kai"
  - name: "Kenney, Martin"
  - name: "Mattila, Juri"
  - name: "Seppälä, Timo"
date_published: "2018-02-26"
series: "ETLA Raportit - Reports"
series_number: "81"
issn:
  - "2323-2447"
  - "2323-2455"
jel_codes:
  - "L8"
  - "L86"
  - "O3"
  - "O33"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-81.pdf"
keywords:
  - "Artificial Intelligence"
  - "Platforms"
  - "Platform Business Group strategy"
  - "Baidu"
  - "Alibaba"
  - "Tencent"
identifier: "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-81"
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."
abstract_translations:
  fi: "Kiinalaiset alustatalouden jättiläiset, Baidu, Alibaba ja Tencent, ovat lyhyessä ajassa nousseet maailman merkittävimpien tekoälyteknologian kehittäjien ja hyödyntäjien joukkoon. Katalyyttinä tälle kehitykselle on toiminut kiinalaiskolmikon soveltama niin sanottu PBG-strategia (Platform Business Group strategy). Sen ajatuksena on, että alustayritykselle syntyy synergiahyötyjä, kun kuluttajille suunnatut palvelut yhdistetään yhdeksi monitoimialaiseksi palvelukokonaisuudeksi. PBG-strategian soveltaminen on mahdollistanut kolmikolle poikkeuksellisen laajojen ja moniulotteisten datamassojen hyödyntämisen tekoälyalgoritmien kehityksessä. Aasialaisten alustajättien tekoälykehitys vaikuttaakin muodostuvan varsin erilaiseksi verrattuna yhdysvaltalaisten alustajättien tapaan kehittää ja hyödyntää tekoälyä. Mikäli kiinalaiset alustatoimijat onnistuvat pyrkimyksissään laajentua globaaleille markkinoille, ne tulevat muodostamaan Euroopan perinteisille toimialoille täysin uudenlaisen uhkakuvan Googlen, Androidin, Facebookin ja Amazonin tuomien haasteiden rinnalle."
---

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

**Published:** 2018-02-26  
**Categories:** Julkaisut, Raportit  
**URL:** https://www.etla.fi/julkaisut/the-application-of-artificial-intelligence-at-chinese-digital-platform-giants-baidu-alibaba-and-tencent/

#### 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.

# Baidun, Alibaban ja Tencentin tekoälystrategioista

#### Tiivistelmä

Kiinalaiset alustatalouden jättiläiset, Baidu, Alibaba ja Tencent, ovat lyhyessä ajassa nousseet maailman merkittävimpien tekoälyteknologian kehittäjien ja hyödyntäjien joukkoon. Katalyyttinä tälle kehitykselle on toiminut kiinalaiskolmikon soveltama niin sanottu PBG-strategia (Platform Business Group strategy). Sen ajatuksena on, että alustayritykselle syntyy synergiahyötyjä, kun kuluttajille suunnatut palvelut yhdistetään yhdeksi monitoimialaiseksi palvelukokonaisuudeksi. PBG-strategian soveltaminen on mahdollistanut kolmikolle poikkeuksellisen laajojen ja moniulotteisten datamassojen hyödyntämisen tekoälyalgoritmien kehityksessä. Aasialaisten alustajättien tekoälykehitys vaikuttaakin muodostuvan varsin erilaiseksi verrattuna yhdysvaltalaisten alustajättien tapaan kehittää ja hyödyntää tekoälyä. Mikäli kiinalaiset alustatoimijat onnistuvat pyrkimyksissään laajentua globaaleille markkinoille, ne tulevat muodostamaan Euroopan perinteisille toimialoille täysin uudenlaisen uhkakuvan Googlen, Androidin, Facebookin ja Amazonin tuomien haasteiden rinnalle.

---

## Additional Information

**Kirjoittajat:** Jia, Kai - Kenney, Martin - Mattila, Juri - Seppälä, Timo

**Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-raportit-reports-81-kansi.jpg

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-81.pdf

**Key Words:** Artificial Intelligence, Platforms, Platform Business Group strategy, Baidu, Alibaba, Tencent

**Avainsanat:** Tekoäly, Alustat, PBG-strategia, Baidu, Alibaba, Tencent

**Jel:** L8, L86, O3, O33

**Paivays:** 26.02.2018

**Sivuja:** 11

**Kieli:** en

**Sarja:** ETLA Raportit - Reports

**Sarja Nro:** 81

**Issn:** 2323-2447, 2323-2455 (Pdf)

**Saatavuus:** 2

**Publication Research:** No



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