Is ByteDance Still Leading Overseas Expansion in the AI Era?

ByteDance has been a major player in the tech industry, especially with its strong focus on artificial intelligence (AI).

Recently, the company was featured prominently in the a16z Top100AI list, where it took the lead at the company level, holding six spots across the Top50 Web and App lists. Among these products are Hypic, Cici, Doubao, Coze, and Gauth, some of which are relatively new AI-driven offerings.

Despite these achievements, ByteDance’s journey in the AI sector may not be as smooth as it seems.

A Closer Look at ByteDance’s AI Products

Hypic, the overseas version of Xingtu, and Gauth have seen success, largely driven by their integration of AI. Hypic, initially a photo-editing app, now includes features like AI photo-taking and old photo restoration. Gauth, an educational tool focused on AI-driven problem-solving, has made significant strides after its initial “free-range” phase, which saw little investment or advertising.

However, the success of these two products appears to be more the result of integrating AI features into established products rather than leading innovation in the AI field.

Doubao, Cici, and Coze, on the other hand, face challenges. Doubao, an AI chatbot, has gained traction in China, but its overseas counterpart, Cici, is struggling to break into markets beyond emerging regions like the Philippines and Indonesia. Coze, an AI agent platform, initially showed promise, but after moving to a paid model, user visits dropped significantly.

Monetization Challenges

One of the biggest hurdles for ByteDance’s AI products is commercialization. Many of its AI-driven apps, such as Doubao and Cici, have yet to find a profitable business model. While Doubao has secured a dominant position in China, it remains a free service, heavily reliant on ByteDance’s advertising spend. Cici, launched earlier, has stabilized in user growth but has yet to begin monetization efforts.

Even Coze, once a promising AI agent platform, has struggled after its shift to a paid model. High competition and the lack of a clear, must-have function have led to a rapid decline in users.

The Broader AI Landscape

ByteDance has also ventured into other AI fields like image generation and e-commerce with products such as PicPic and Doubao Aixue. However, many of these initiatives have not gained the same traction.

While ByteDance continues to experiment in different AI tracks, from interactive story platforms to AI photo tools, most of these products have yet to find their niche or achieve significant commercial success.

In Conclusion

While ByteDance continues to be a key player in the AI space, its current offerings reflect a mixed bag of successes and challenges.

Products like Hypic and Gauth have found moderate success, but the company faces difficulties in monetizing its AI-driven apps and maintaining user interest. As the company continues to explore various AI sectors, it may take more time to replicate the global success it achieved with TikTok.