NetEase, the Chinese tech giant listed on Nasdaq under the symbol NTES, has been quietly developing a range of artificial intelligence products. Several of these technologies are already starting to reach commercialization. Among their partners are big names like 20th Century Fox from the U.S., along with various domestic and international appliance and furniture brands.
At the NetEase Cloud Innovation Conference held recently in Hangzhou, the AI division showcased several of its latest offerings. These included "Netease Insight," an augmented reality interactive projection module capable of turning any surface into a screen for real-time, three-dimensional virtual object display. Other products on display were "NetEase Video," "NetEase Porter" — an intelligent chatbot development platform, and the "NetEase Smart+" open platform.
The AI division, based in Hangzhou, focuses heavily on deep learning, voice processing, computer vision, pattern recognition, human-computer interaction, and heterogeneous computing. Their aim is to explore new forms of user interaction in the next generation. According to Wang Yuan, the Executive Dean of NetEase's Hangzhou Research Institute, the AI division traces its roots back to 2012 when it initially focused on facial recognition and its application within NetEase's email service — making it the first in China to offer face recognition login functionality. By 2016, the company had rebranded itself and expanded AI services across all of NetEase's products. Today, the team includes over 100 professionals, many of whom hold PhDs and have returned from overseas studies, with the team growing rapidly.
A source inside NetEase mentioned that the AI division would soon be established as a separate business unit, branching off from the Hangzhou Research Institute. Currently, giants like Alibaba and Tencent have also set up AI labs and recruited numerous technical experts from places like Microsoft and Amazon’s Seattle headquarters. Alibaba recently released a smart speaker, marking its entry into the voice-intelligence market.
Wang Yuan stated that NetEase will not focus on fundamental AI research but rather concentrate on applying AI technology practically, integrating it into real-world business scenarios. Given that the majority of NetEase’s revenue comes from gaming, they are particularly interested in exploring how AI can enhance gaming experiences. He remarked, "Projects like Google's AlphaGo, while impressive, lack commercial value. We won’t necessarily pursue such endeavors."
NetEase has several deep learning applications in the works:
Firstly, in content security, where it applies to image identification, text recognition, and video filtering.
Secondly, in smart customer service. Robots handle around 86% of customer inquiries, leaving only 14% to be answered manually. In 2016 alone, these robots processed over a billion queries, saving customers over $100 million.
Thirdly, through "NetEase Porter," a unified platform for dialogue bots that can be used across multiple scenarios. For instance, the education solution offered by NetEase Cloud allows users to configure bots on the Bode platform, accessing vast amounts of high-quality content and services like music, cloud classrooms, e-commerce, emails, news, etc., thereby adding conversational intelligence to products.
In the realm of augmented reality (AR), NetEase has two main applications:
The first is "NetEase Insight." This adds AR capabilities to marketing models like print and video ads. Many global brands, including Coca-Cola, Spotify, and BBC, have adopted AR to improve user engagement. NetEase developed its own AR engine, enabling realistic 3D presentations of virtual objects.
An example of this was a project with Alien, where a virtual entity appeared in the real world and jumped onto the "Pure Land" of the internet from your side. Another collaboration was with a well-known domestic appliance manufacturer, allowing consumers to virtually inspect product details before purchasing.
The second is "NetEase Shadow," which projects screens onto any flat surface, ideal for smart kitchens and interactive classrooms.
AI advancements and the accumulation of vast datasets are also driving new cloud computing applications. "Cloud computing shouldn't just be a technical term for selling server space and computing power," said Wang Yuan.
On the same day, NetEase Cloud, its big data brand, shared its progress over the last two years: by June, it had served 350,000 corporate clients and reached 700 million end-users.
NetEase Cloud also announced a deep partnership with Inspur and Intel. They plan to collaborate strategically in cloud computing, big data, and AI. Wang Hongli, Vice President of Inspur Group, expressed optimism about NetEase's potential in the capital markets and its long-term technological accumulation. She noted, "Inspur and NetEase have cooperated for ten years. NetEase has built significant expertise in big data and distributed storage. The key challenge now is integrating these capabilities, packaging them, combining hardware and software, and adopting a more open mindset."
Inspur and NetEase aim to leverage their strengths to create innovative solutions that push the boundaries of what’s possible in the digital age.
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