The Chinese technology company Tencent is implementing an artificial intelligence agent within WeChat, the widely used “super-app” in China that contains many different features, from instant messaging to social media, from digital payments to banking services; it also allows you to book a taxi, for example, order food delivery, find nearby businesses, pay bills, and even carry out various bureaucratic procedures.
THE STEPS BEFORE THE LAUNCH
According to the Financial Times – which broke the news, causing Tencent’s shares on the Hong Kong stock exchange to rise by 10.5 percent – the company is currently testing a prototype of the agent, after which it will have to start the compliance process with Chinese authorities. Following this step, the agent will be made available to a limited group of WeChat users before mass rollout.
WHAT WILL WECHAT’S AI AGENT BE USED FOR?
The launch date of the feature is not yet known. However, we know that the agent will be able to perform various operations on behalf of users among the numerous mini-programs contained in WeChat, such as ordering food based on indicated taste and price preferences. It will be accessible – a source revealed to the Financial Times – with a swipe to the right from the app’s main screen.
WHAT TENCENT’S COMPETITION IS DOING
Other Chinese technology companies competing with Tencent have already introduced AI-based features on their platforms: ByteDance (the company that developed TikTok) has implemented online shopping in Doubao, for example, and Alibaba has integrated its e-commerce and browsing services within Qwen Ai.
Tencent is behind – in fact, WeChat already has the Yuanbao search chatbot – but it could catch up with the competition due to the fact that WeChat is the most used app in China, with 1.4 billion monthly active users: neither Doubao nor Qwen Ai reach similar numbers, nor do they possess as much data on Chinese users’ habits.
THE PROBLEM OF COMPUTING POWER (AND COSTS)
According to a source from the Financial Times, Tencent considers the launch of WeChat’s artificial intelligence agent “its top strategic priority.” For this reason – explains the newspaper – executives “are paying close attention to ensure every aspect of the agent is perfect, which could lead to a prolonged testing phase and numerous revisions before the final launch.”
Given the volume of WeChat users, Tencent might face some difficulties securing sufficient computing power: historically, the company – like other Chinese Big Tech firms – has relied on Nvidia processors, but now it can no longer access them due to U.S. trade restrictions, while Chinese alternatives remain limited despite efforts. It also appears that Tencent did not stockpile many Nvidia microchips before the American ban on exports to China came into effect.
Another obstacle is the expense-to-revenue ratio: Tencent’s own internal assessments indicate that a large-scale release of an artificial intelligence agent will be very costly, and it is unclear whether the company will be able to generate sufficient revenue in the short term to cover the expenses.
