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Tag: Artificial intelligence

  • Over Half of Southeast Asian Retailers Remain Stuck in AI Pilots

    Over Half of Southeast Asian Retailers Remain Stuck in AI Pilots

    More than 56 percent of consumer goods and retail companies across Southeast Asia remain trapped in continuous testing, unable to scale artificial intelligence into commercial production.

    While 8 percent of enterprises in the region have fully deployed AI initiatives compared to a 6 percent global average, retail operators lag behind banking and technology peers.

    Why Models Fail at the Border

    Across global retail, nearly 75 percent of AI projects fail to reach production deployment. Poor data quality accounts for roughly 85 percent of those collapses, compounded by the region’s mix of modern supermarkets, social commerce platforms, and traditional corner stores.

    A demand forecasting algorithm tuned on clean transaction records in Singapore often breaks down when deployed across Indonesian point-of-sale systems or Vietnamese wholesale networks. Without standardized data definitions across borders, multi-market rollouts stall before delivering operational cost cuts.

    Another 73 percent of failed retail AI programs lacked quantifiable performance metrics before launch. Broad mandates to improve customer personalization frequently dissolve without hard targets, such as cutting category stockouts by 4.5 percent across secondary regional logistics hubs.

    Regulatory Divergence and Vendor Risks

    Multi-market operators now run AI workloads across separate cloud platforms to mitigate operational outages. More than a third of large enterprises deploy five or more models in production, driven by concerns that single-vendor disruptions could halt real-time pricing and automated purchase orders across physical storefronts.

    Singapore and Vietnam have introduced comprehensive risk-based AI regulatory frameworks, while neighboring markets develop separate data residency rules. Retailers operating across Jakarta, Bangkok, and Manila face distinct local sovereignty laws that penalize centralized data models.

    For regional retail groups that expanded through rapid store acquisitions over the past decade, technical fragmentation creates the same operational drag that previously hobbled centralized enterprise resource planning rollouts. Successful operators are shifting away from standalone software pilots, requiring field managers to redesign replenishment and supply workflows around automated tools before approving cross-border rollouts.

    Regulatory compliance deadlines in Singapore and expanding data sovereignty enforcement in Jakarta will test whether multi-market retailers can maintain cross-border automated pricing and inventory pipelines through 2027.

  • Over A Third of Asian Shoppers Would Let AI Switch Brands, Accenture Finds

    Over A Third of Asian Shoppers Would Let AI Switch Brands, Accenture Finds

    More than a third of consumers across Asia would let artificial intelligence switch their purchases to a competing brand if the algorithm found a better match, according to data from Accenture.

    The finding reveals that conventional customer loyalty offers little protection against automated shopping tools designed to optimize price and product fit.

    Shoppers who identify as loyal to specific labels are willing to delegate buying decisions to autonomous digital assistants. These systems evaluate alternative products in real time and execute switches without requiring consumers to compare catalogs manually.

    Automated choices challenge legacy loyalty

    Retailers across the Asia-Pacific region have invested heavily in points schemes, subscription tiers, and bespoke mobile apps to lock in repeat buyers. Autonomous software cuts through those incentives by prioritizing immediate utility over historical brand affinity.

    When an algorithm spots a cheaper alternative, faster delivery, or better specifications, consumer willingness to let the machine override personal habits leaves traditional retention strategies exposed.

    The change shifts power toward platforms that control the automated interface rather than the merchants producing the goods.

    Trust gaps determine adoption speed

    Consumer willingness to hand over purchasing authority depends directly on how much trust shoppers place in the underlying algorithms. Retailers operating in Asian markets must now compete not only on shelf presence and digital advertising, but on whether their product feeds are structured for automated evaluation by third-party AI agents.

    Brands that fail to provide clean, verifiable product specifications risk being bypassed entirely by autonomous recommendation engines.

    Enterprise retailers across the region are now reassessing product data infrastructure as agentic commerce tools move from experimental pilots into mainstream consumer applications across Asian digital storefronts.

  • KDDI Launches Paid Consumer AI Assistant Buffmee in Japan

    KDDI Launches Paid Consumer AI Assistant Buffmee in Japan

    Japanese telecom operator KDDI launched Buffmee, a consumer artificial intelligence assistant that charges JPY 980 a month for verified search and study tools. The service runs on Google Cloud and restricts query answers exclusively to curated materials from licensed book publishers, magazines and specialized databases.

    Unlike general-purpose chatbots that scrape the open internet, Buffmee functions as a closed ecosystem where users can cross-check answers directly against partner citations. The platform targets daily consumer queries across education, cooking, sports, parenting, business and personal finance.

    Curated data over open web searches

    KDDI designed the app to address rising consumer frustration with unverified AI search results and hallucinations. Partner publishers provide copyrighted and premium texts to the platform, gaining a controlled digital distribution channel while KDDI secures proprietary content for its model.

    Users interact through structured shortcuts and dedicated buttons designed to reduce prompt writing. The software includes tools for text summarisation, data analysis, image generation, daily planning, test problem creation and digital flashcards.

    Freemium tiers and study tools

    The service operates on a two-tier pricing structure. The free tier caps usage at 100 chat sessions and 10 image generation requests per day, while the JPY 980 (USD 6.50) monthly subscription removes all volume limits. KDDI is offering the premium tier free for the first year to build initial consumer adoption.

    Asian telecom operators are increasingly shifting from commodity network access into branded consumer digital services to defend average revenue per user. While regional peers in Southeast Asia and South Korea have focused primarily on enterprise AI contracts and customer care automation, KDDI is taking subscription software directly to retail mobile subscribers through curated publisher partnerships.

    KDDI will track conversion rates as early adopters reach the end of their 12-month free promotional period and transition onto the standard monthly billing cycle.

  • CelcomDigi Debuts Sophia AI to Automate SME Workflows in Malaysia

    CelcomDigi Debuts Sophia AI to Automate SME Workflows in Malaysia

    CelcomDigi rolled out an agentic artificial intelligence platform called Sophia AI in Malaysia, targeting operational bottlenecks across retail, supply chain, and small-business operations. The carrier developed the tool after testing more than 400 internal automations across its own corporate workflows.

    Unlike simple conversational bots, agentic AI operates autonomously across connected business systems. The platform executes multi-step tasks, flags processing exceptions, and updates enterprise software without requiring manual intervention from staff.

    Automating Retail and Supply Chains

    For retail and wholesale distribution networks, the platform takes over the invoice-to-payment cycle. Sophia AI reads supplier invoices, validates billing data against purchase orders, routes payment approvals, and updates accounting records across multi-store operations.

    CelcomDigi also designed the architecture to handle procurement and inventory tracking in manufacturing, appointment scheduling and claims processing in healthcare, and document verification for public sector agencies. Businesses can adjust the tool to match their existing infrastructure rather than overhauling internal software systems.

    “Our focus now is helping other organizations, particularly SMEs, achieve the same benefits,” said T. Kugan, chief enterprise business officer at CelcomDigi. “With our agentic AI solution, we can successfully eliminate repetitive administrative tasks while empowering employees to devote time on higher-value work.”

    Closing the Enterprise Adoption Gap

    Regional telecom operators are pitching automation software directly to commercial clients to grow enterprise revenue beyond standard mobile connectivity. Similar rollouts by Singtel in Singapore and HKT in Hong Kong show carriers bundling proprietary software with 5G data pipelines and cloud hosting.

    Adoption among smaller merchants remains uneven. Findings from Malaysia’s Ministry of Finance Economic Outlook 2026 report show SMEs struggle with artificial intelligence deployments because of unclear returns on investment and software tools built only for large corporations. CelcomDigi is pairing Sophia AI with its enterprise data, cloud, and cybersecurity bundles to lower onboarding friction for smaller accounts.

    Commercial rollouts for Malaysian enterprise clients begin immediately through CelcomDigi’s business division.

  • Chinese AI and Chip Makers Hand Millions in Stock to Lock Down Staff

    Chinese AI and Chip Makers Hand Millions in Stock to Lock Down Staff

    Chinese artificial intelligence and semiconductor firms are granting stock awards worth millions of dollars to staff across entire workforces to halt talent poaching.

    Chip designer Cambricon Technologies unlocked nearly 600,000 shares for 124 core staff, delivering an average payout of 5.57 million yuan (US$828,000) per employee. The Shanghai-listed company also launched a 5 million share scheme covering 944 workers through 2028, representing 85.3 per cent of its total payroll.

    Hardware Giants Expand Workforce Coverage

    Zhongji InnoLight, which makes optical transceivers for AI data centres, allocated 2.48 million shares across 99 key personnel in its latest vesting cycle. Based on April market pricing, that distribution yielded an average of more than 26 million yuan per recipient.

    Equipment manufacturer Advanced Micro-Fabrication Equipment China widened access further. Its March restricted share programme enrolled more than 97 per cent of its workforce. GPU maker Moore Threads followed in April by assigning 1,080 employees, roughly 85 per cent of its headcount, into its equity pool. At memory producer ChangXin Memory Technologies, founder Zhu Yiming pledged 768 million shares, half his partnership stake, to fund a decade-long employee pool while excluding himself from payouts.

    Zero Targets and Pre-IPO Payouts

    AI model developers are structuring payouts with fewer performance hurdles. Hong Kong-listed MiniMax issued 1.16 million zero-cost shares in June to core personnel, tying vesting schedules solely to tenure rather than operational benchmarks. Rival developer Zhipu AI allocated a 9.8 per cent post-listing stake across 426 staff through an internal platform, yielding an average holding value exceeding HK$100 million per person.

    Big Tech platforms are stepping up their own programmes to match startup offers. Tencent Holdings granted more than 38.6 million shares under its employee scheme, representing 0.42 per cent of its issued equity, as Alibaba Group Holding, Baidu, Meituan and Xiaomi rework compensation packages.

    The scale of these handouts reflects how quickly technical headcount costs have risen across mainland China. Where earlier stock plans favoured senior directors, current programmes distribute equity down to floor engineers to insulate operations from overseas recruitment drives and venture-backed rivals.

    Market watchers are now monitoring upcoming interim financial filings to track the share dilution costs from these multi-year vesting programmes.

  • Pakistan Plans AI Trade Data Network Linking 55 Overseas Missions

    Pakistan Plans AI Trade Data Network Linking 55 Overseas Missions

    Pakistan’s Ministry of Commerce reviewed plans in Islamabad to build a sovereign cloud and artificial intelligence platform connecting commercial trade data across more than 55 overseas trade missions.

    Commerce Minister Jam Kamal Khan met with representatives from the Pakistan Digital Authority and data-centre operator Sky47 to draft the framework. The plan targets disparate datasets covering thousands of tariff codes, exporter registries, chambers of commerce, and the Trade Development Authority of Pakistan.

    Centralising Export Data And Sovereign Cloud

    The ministry aims to consolidate fragmented departmental databases into a unified national system. Officials reviewed data governance protocols that classify trade information into open, shared, restricted, and personally identifiable tiers while keeping data ownership within respective public agencies.

    Discussions centered on shifting trade analysis away from static reports toward predictive computing models. Khan directed departments to build direct digital feeds between domestic commercial bodies and trade attachés stationed abroad.

    Expanding Data Centre Capacity With Sky47

    Sky47 presented plans to expand its local data-centre footprint to support sovereign hosting, cybersecurity, disaster recovery, and the higher computing loads required by machine learning models. The company outlined facilities featuring energy-efficient cooling, intelligent data storage, and metadata management designed to replace small, departmental server setups.

    Government trade digitisation across South Asia has often stalled at the portal stage, leaving exporters reliant on manual clearance and disconnected trade attachés. Consolidating tariff analytics and real-time overseas market intelligence onto sovereign servers represents an effort to modernise export logistics that regional peers like India and Vietnam completed years earlier.

    The ministry and the Pakistan Digital Authority will next draft sector-specific roadmaps under a broader national digital master plan before opening integration to provincial agencies and private trade groups.

  • Uzbekistan Commits $100 Million to Subsidise AI Across 10,000 Businesses

    Uzbekistan Commits $100 Million to Subsidise AI Across 10,000 Businesses

    Uzbekistan will spend at least $100 million to subsidise artificial intelligence adoption across 10,000 enterprises, covering half the cost of software implementation for commercial operators. The state-backed program targets manufacturing and consumer supply sectors, extending automation subsidies from the textile trade into food processing, electrical engineering, and construction materials.

    President Shavkat Mirziyoyev announced the funding following consultations with business owners in the Khorezm region. Government data presented at the meeting showed that 54 per cent of domestic companies using modern management and AI systems saw product demand increase. A quarter of those businesses lowered production costs, while higher sales allowed 40 per cent to raise worker wages by more than 10 per cent.

    Subsidies for Factory Automation

    Under the initiative, the state will reimburse 50 per cent of what companies spend to introduce automated management systems and machine learning tools. Participating enterprises will also receive access to pre-built, open-platform software designed to eliminate the cost of developing proprietary applications from scratch.

    Hardware support will run through the Center for Digital Government Project Management, where authorities recently brought online Uzbekistan’s first supercomputer cluster. Companies building AI models for commercial products can process workloads on the facility without charge, with research and development bills settled directly by the state budget. Computing capacity at the cluster will triple next year.

    The push reflects how Central Asian governments are attempting to modernize domestic supply chains and bypass legacy enterprise systems. While Southeast Asian manufacturing hubs rely heavily on private capital and foreign software vendors to automate shop floors, Tashkent is using direct treasury subsidies to pull mid-tier producers into modern data workflows.

    Supercomputing and Regional Education

    Administrative processes are seeing similar investments. The Ministry of Digital Technologies signed an agreement with South Korea’s National Information Society Agency and UZINFOCOM to build an AI system that processes and manages citizen appeals to state bodies, starting with a feasibility study and pilot rollout.

    Across the border, Kazakhstan is focusing resources on technical labor. First Vice Minister of Artificial Intelligence and Digital Development Rostislav Konyashkin confirmed the establishment of Qazaq AI Research University under orders from President Kassym-Jomart Tokayev. The institution will embed machine learning coursework into outside degree programs and build research links with partner centers in China, Finland, and the United Arab Emirates.

    Uzbek authorities will open the enterprise application window in stages, with initial disbursements prioritized for food processors and light industrial plants preparing export shipments.

  • Alibaba Net Profit Plunges 75 per Cent on Heavy AI Infrastructure Spending

    Alibaba Net Profit Plunges 75 per Cent on Heavy AI Infrastructure Spending

    Alibaba Group reported a 75 per cent plunge in quarterly net profit to June as capital expenditure on artificial intelligence surged. Group revenue rose 9 per cent to 268.95 billion yuan, matching market forecasts while cloud computing gains offset slowing domestic commerce.

    Capital spending climbed 75 per cent year on year to 67.68 billion yuan in the three months to June 30. The Hangzhou-based group has already deployed half of its 380 billion yuan AI investment budget scheduled through 2029, buying server processors and expanding data centres to handle surging enterprise demand.

    Surging Compute Costs and In-House Silicon

    Chief executive Eddie Wu said the company expects to break even on its AI-related capital expenditure within three years at current gross margins. Revenue from AI cloud and compute services jumped 45 per cent to 48.44 billion yuan during the quarter, with annual recurring revenue from AI model-as-a-service exceeding 16 billion yuan.

    To rein in hardware expenses, Alibaba is replacing commercially procured processors with silicon built by its in-house chip division, T-head. The proprietary semiconductors are now running across clustered server racks for both model training and inference workloads, which management expects will widen operating margins as deployment expands.

    The margin squeeze mirrors the heavy infrastructure spending across Asia’s technology sector, where hyperscalers and platform operators are absorbing massive upfront costs before enterprise software monetization matures. Alibaba is defending its cloud dominance against domestic rivals Tencent and Baidu, while simultaneously backing frontier model developers such as Moonshot to anchor future compute traffic to its ecosystem.

    Reorganisation and Core Retail Headwinds

    Adjusted earnings per American Depositary Share fell to 8.52 yuan, trailing the 10.53 yuan consensus tracked by LSEG. Softer consumer demand in mainland China continues to weigh on the core marketplace division, prompting chief financial officer Toby Xu to highlight macroeconomic friction across domestic online shopping.

    Wu now leads the dedicated Alibaba Token Hub following an internal restructuring that split operations into four divisions: e-commerce, AI cloud and compute, model applications, and other businesses. Affiliate Ant Group recorded a 1 per cent rise in quarterly profit as it tests AI shopping assistants and digital health tools.

    Management is targeting overall profitability for the group’s quick-commerce unit by fiscal 2029, while tracking a three-year payback window on its current infrastructure outlays.

  • Alibaba and ByteDance Divest from Gaming and Retail to Fuel AI Ambitions

    Alibaba and ByteDance Divest from Gaming and Retail to Fuel AI Ambitions

    Alibaba Group Holding and ByteDance are restructuring their business portfolios, selling off non-core assets in gaming and retail to private equity firms. This strategic shift aims to re-focus substantial resources and investment into the burgeoning field of artificial intelligence, as competition in the AI sector intensifies across Asia.

    Strategic Divestment For AI Focus

    The move sees Alibaba Group Holding in the process of selling Lingxi Games, its video game unit, to a private equity fund. This divestment reflects a broader trend among leading Chinese technology firms to streamline operations and concentrate capital on high-growth, strategic areas like AI. The decision comes as these companies face mounting pressure to innovate and secure a leading position in the global AI race.

    For retailers and consumer brands in Asia, this reorientation by tech giants like Alibaba has significant implications. Alibaba’s strong presence in e-commerce means that resources diverted to AI are likely to enhance capabilities in areas such as personalised recommendations, supply chain optimisation, and customer service automation. Similarly, ByteDance’s TikTok, a major platform for consumer engagement, could see advanced AI integration impacting everything from content delivery to advertising effectiveness.

    Implications For Asia’s Retail And Tech Sectors

    The decision by Alibaba and ByteDance signals a clear prioritisation of AI development over other business segments, including those with direct ties to consumer spending like gaming and certain retail operations. While the full scope of ByteDance’s retail divestments is not detailed, Alibaba’s move with Lingxi Games indicates a willingness to shed assets to fund core strategic initiatives. This aligns with broader market trends where technology companies are doubling down on AI infrastructure and research, viewing it as the next frontier for competitive advantage.

    This redirection of investment could lead to more sophisticated AI tools and platforms becoming available for businesses, potentially driving efficiency and innovation within the retail and consumer sectors. RetailNews Asia has observed similar strategic realignments across the region, where companies are either investing heavily in AI or partnering with AI specialists to stay competitive in an increasingly tech-driven market.

  • Perion Network Boosts AI Platform for Retail Media, CTV Growth

    Perion Network Boosts AI Platform for Retail Media, CTV Growth

    Digital advertising firm Perion Network is intensifying its focus on artificial intelligence (AI) to optimize ad campaigns for retailers and brands. The company is using its Perion One platform, which includes an AI-driven engine called Outmax and a client interface called Ask Perion, to navigate the fragmented digital advertising ecosystem.

    Perion’s strategy addresses the challenge advertisers face in gaining clear insights and managing performance across various platforms, formats, and audience segments. The AI layer analyzes campaign data, identifies inefficiencies, and provides recommendations to improve media investment returns.

    This move reflects a broader industry trend where technology providers are enhancing their offerings to support sophisticated retail media strategies. As retailers in Asia increasingly invest in both online and in-store advertising channels, platforms like Perion One become crucial for unified campaign management and performance measurement.

    Accelerated Growth in Key Ad Channels

    Perion Network reported substantial growth in spending across its newer advertising channels during the second quarter. Retail media spend increased by 60% year-over-year, while connected TV (CTV) rose by 56%, and digital out-of-home (DOOH) grew by 45%. Perion One’s overall spending saw a 15% increase, with its AI-driven optimization technology, Outmax, experiencing over 130% adoption growth.

    Outmax evaluates campaign performance across channels, creative assets, and key performance indicators, then suggests changes such as budget reallocation or creative adjustments. The company also introduced Ask Perion, an interface allowing clients to interact with the platform, submit campaigns, and review results. Perion aims to integrate Outmax with platforms like ChatGPT and Google Shopping, and plans to add more channels.

    Expanding Reach and Agency Partnerships

    Perion has secured new agency agreements expected to contribute significantly by late in the third quarter, following extensive testing. These partnerships demonstrate the platform’s ability to perform across diverse campaigns and channels, creating a competitive barrier for others. The company plans to replicate this model with additional clients.

    Digital out-of-home remains Perion’s largest channel, with the company operating technology for in-store inventory at retailers like Best Buy Canada. Perion views in-store media as a significant growth opportunity, allowing advertisers to engage consumers near the point of purchase. The company’s network connects to over 1.6 million screens in more than 40 countries, and it aims to further expand this global access for advertisers. Also, CTV is a fast-growing product for Perion, supporting activity across major streaming services and platforms with its cross-channel approach.

  • KPMG Explores Global AI Integration in Retail from Strategy to Storefront

    KPMG Explores Global AI Integration in Retail from Strategy to Storefront

    Artificial intelligence is becoming a crucial component in retail operations, spanning from strategic planning to direct consumer engagement. A new report by KPMG details how retailers are adopting AI technologies across their global businesses to enhance efficiency and customer experience.

    The findings indicate that AI’s influence is moving beyond back-office functions and into more visible customer-facing roles. Retailers are deploying AI to optimize supply chains, personalize marketing efforts, and improve in-store shopping experiences. This comprehensive integration aims to streamline operations and create more responsive retail environments.

    Global Adoption Of AI In Retail

    The KPMG report outlines a broad spectrum of AI applications observed worldwide. These include predictive analytics for inventory management, AI-driven tools for customer service through chatbots, and personalized product recommendations online and in physical stores. The goal is often to meet evolving consumer expectations for speed, convenience, and tailored offerings.

    Such advancements require a strategic approach, as integrating AI effectively demands significant investment in technology infrastructure and skilled personnel. The report suggests that successful AI implementation relies on aligning these technological shifts with overall business objectives, ensuring that AI tools actively contribute to growth and competitive advantage.

    Implications For Asia-Pacific Retailers

    For retailers operating within the Asia-Pacific region, the global trends outlined by KPMG offer critical insights. Many regional companies are already at the forefront of AI adoption, particularly in markets like China and Singapore, where digital transformation is rapid. Businesses in Southeast Asia, for instance, are increasingly experimenting with AI to manage complex e-commerce logistics and to personalize mobile shopping experiences. The retail sector in Asia continues to invest heavily in smart technologies to improve operational efficiency and adapt to dynamic consumer behavior.

  • Nestlé Targets GLP-1 Drug Users with AI-Driven Nutritional Products, Expands Asia Offerings

    Nestlé Targets GLP-1 Drug Users with AI-Driven Nutritional Products, Expands Asia Offerings

    Nestlé is strategically adapting to the growing market of GLP-1 weight-loss drug users, turning a potential threat to packaged food sales into a new business avenue. The company is employing artificial intelligence and advanced nutritional science to create products designed for millions of consumers globally who use medications such as Ozempic and Wegovy.

    The rapid uptake of drugs from pharmaceutical giants like Novo Nordisk and Eli Lilly has raised concerns among investors about a potential long-term decrease in demand for traditional packaged foods, snacks, and beverages. However, Nestlé views this shift as an opportunity to cater to the specific needs of these consumers, particularly in managing the side effects of rapid weight loss.

    Addressing Side Effects With Targeted Nutrition

    Chief technology officer Stefan Palzer noted that Nestlé is well-positioned to serve this emerging market. The company is using AI and other technologies to analyse clinical research, pinpoint optimal nutrient combinations, and develop products specifically for GLP-1 users. Presentation materials highlighted side effects such as muscle loss and the reduction of facial fat, known as “Ozempic face,” indicating areas where Nestlé’s products can offer support.

    With an estimated 16 million Americans currently using GLP-1 medicines, a number expected to grow significantly, Nestlé’s response includes accelerating research and product development through AI. Its scientists are focusing on the consequences of rapid weight loss, developing items to help consumers manage muscle health, hydration, and overall nutritional intake.

    For example, Nestlé has incorporated collagen protein into products under its Vital Proteins brand to address concerns about skin, hair, and nail health. The company has also patented combinations of proprietary ingredients aimed at reducing the increased hunger some consumers experience after discontinuing GLP-1 treatments. In the United States, Nestlé introduced Boost Advanced Nutrition Shake, containing 35g of protein for muscle health. Crucially for the Asian market, Nestlé has launched Milo PRO High Protein, a higher-protein version of its popular malt drink, in Asia and Australia.

    AI’s Role in Product Innovation

    Artificial intelligence is becoming integral to Nestlé’s product development cycle. The company has created internal systems to sift through scientific literature, simulate consumer behaviour, identify market trends, and assist product developers in navigating a vast database of approximately 120,000 recipes.

    One such tool, an internal platform named Food Genie, helps scientists and developers predict product performance and identify opportunities for reformulation. Palzer explained that AI thrives on data, which a large company like Nestlé possesses in abundance. Nestlé is experimenting with AI-driven consumer simulations to forecast how shoppers will react to new products and health claims before they reach retail shelves. The company is also using AI to monitor social media for emerging consumer trends, helping to distinguish fleeting fads from lasting market shifts.

    Despite Nestlé’s efforts, some nutrition experts, such as Amanda Avery, associate professor in nutrition and dietetics at the University of Nottingham, question the significant advantages of specialized products over whole, fresh foods. Avery pointed out that meat, fish, eggs, dairy, beans, nuts, and pulses remain relatively inexpensive sources of protein and nutrients. However, she acknowledged that marketing often influences consumer choices, suggesting that Nestlé’s targeted products are likely to find a receptive audience.

  • Tencent-backed AI startup checks students’ math homework

    Tencent-backed AI startup checks students’ math homework

    In China, there is a big culture of ‘practice makes perfect’. As such, school homework is a battlefield not only for Chinese children, but also for their parents, and teachers, who have the task of reviewing assignments. Technology is increasingly lending a helping hand, though, and now, a Beijing-based online education startup has developed an artificial intelligence-powered math app that can check children’s arithmetic problems through a simple snap of a photo. Based on the image and its internal database, the app automatically checks whether the answers are right or wrong.

    Known as Xiaoyuan Kousuan, the free app launched by the Tencent Holdings-backed online education firm, has gained increasing popularity in China since its launch a year ago. It claims to have checked an average of 70 million arithmetic problems per day, saving users around 40,000 hours of time in total.

    Yuanfudao is also trying to build the country’s biggest education-related database generated from the everyday experiences of real students. Using this, the six-year-old company, which has a long line of big-name investors, including Warburg Pincus, IDG Capital, and Matrix Partners China, aims to reinvent how children are taught in China.

    “By checking nearly 100 million problems every day, we have developed a deep understanding of the kind of mistakes students make when facing certain problems,” said Li Xin, co-founder of Yuanfudao (which means “ape tutor” in Chinese) in a recent interview. “The data gathered through the app can serve as a pillar for us to provide better online education courses.”

    Yuanfudao is China’s second largest online education unicorn by valuation, according to CB Insights. It is behind VipKid, which uses an online platform to connect Chinese students with North America-based teachers to learn English via livestreaming.

    Yuanfudao’s flagship app covers different subjects including math, English, and chemistry. Li said the firm has built a database with student answers to 6 billion questions. He said this know-how has enabled Yuanfudao to better analyze individual students, helping it towards the ultimate goal of providing tailor-made courses and homework.

    Li said the company’s aim is to “dramatically improve education efficiency in China.”

    “Giving different homework to different students even if they study in the same class is even more difficult than providing different news to different readers based on their individual interests and tastes,” said Li. “What we do requires a more accurate profiling of students.”

    Li said that the company’s flagship online tutoring app can produce a basic profile of a student’s strengths and weaknesses based on their answers to three to five questions.

    Founded in 2012, Yuanfudao, which has 200 million users (2 million of whom are paid users) bagged US$300 million in a round of funding in late December, valuing the company at more than US$3 billion. The Chinese online education market is hot, attracting increased interest from technology giants such as Tencent, Baidu, and NetEase in recent years.

    “We don’t really need money, but investors insist […] [on offering more funds]. We still had US$100 million in our bank account before landing this round,” said Li. He said the company was immune to the so-called tech winter, which has seen the venture capital pool almost dry up in China recently.

    Despite a recent slowing of China’s economy, the country’s online education market – covering children from kindergarten age to high school – is set to triple to 150 billion yuan (US$22.33 billion) by 2022, according to data from iResearch, fueled by ambitious “tiger” parents who are prepared to invest heavily in their children’s after-school education.

    Li said it was not his intention to make children work harder.

    “We don’t want children to drown in a sea of homework,” he said. “In the old days, you needed to put in lots of work and practice to stand out. But now technology can make a change.”

    Using AI technologies, the company has already made it possible to recommend different courses to students based on their individual progress on a certain subject. Li said the company can even help to close the educational gap between developed and underdeveloped regions in China through a deep analysis of students’ homework.

    The company has another popular homework assistant app, Xiaoyuan Souti, which uses similar image recognition technology to find answers to student questions across a range of subjects, guiding them through the steps needed to solve particular problems.

    “Through the app, we know exactly what kind of questions teachers in Shanghai assign as homework to students,” Li said. “By collecting the information and studying it, we can enable students in the rest of China to have access to Shanghai’s education resources, in the long run [providing] a fair education environment for all children.”

    “At the end of the day, the only thing that matters in education is one’s curiosity and cognitive ability,” he said.

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  • ViSenze AI technology helps people shop on Samsung phones

    ViSenze AI technology helps people shop on Samsung phones

    Visual commerce AI firm ViSenze has partnered with Samsung to help users easily discover and purchase products using the Shopping by Bixby Vision app on the electronics firm’s mobile devices. The partnership employs ViSenze’s automated visual-commerce technology and visual-search capabilities customised to consumers’ personalised shopping demands.

    “Consumers are exposed to countless products in their everyday lives that inspire and empower them to explore new trends,” said ViSenze CEO Oliver Tan. “Samsung is one of the first major companies to capitalise on this, recognising how essential it is to ensure the path from discovery to purchase is effortless.

    “At ViSenze, we work globally with some of the largest brands and retailers. Coupling this knowledge with our market-leading visual commerce technology, we are able to provide our partners with the insights and capabilities they need to find success with visual search and the commerce it’s driving each day.”

    According to material released by the brand, “Visual commerce solutions enable mobile shoppers to seize inspirational moments instantaneously by enabling them to find the same or visually similar products directly on their devices from top retailers such as Rakuten, Urban Outfitters and Zalora.”

    “Thanks to ViSenze, customers in this region can now take mobile shopping to new heights via Shopping by Bixby Vision, which makes shopping easier than ever, via your camera,” said head of mobile services & partnerships for Samsung Southeast Asia & Oceania Christopher Tarr.

    “From inspiration to instant gratification – it is that simple.”

  • India’s Tanishq brings its first Augmented Reality experience for its customers

    India’s Tanishq brings its first Augmented Reality experience for its customers

    From social media filters, to reshape the concept of traditional retail, Augmented Reality (AR) is rapidly growing in popularity because it brings elements of the virtual world, into the reality, thus enhancing the things we see, hear, and feel. AR has made retail engagement all the more experiential, fascinating and personal and it’s often considered to be in the middle of a mixed reality spectrum; between the real world and the virtual world.

    Tanishq has taken one step further to be more accessible to its customers by launching into the Augmented Reality experience at the Bangalore and Delhi airports. For the first time in India, a jewellery brand is doing an Augmented Reality/ hybrid reality (combination of physical space Augmented Reality) campaign at an airport to engage with a large audience at a completely new level. Tanishq is leaving no stone unturned to keep their customers happy by adopting innovative ways to display their product range.

    With this technological advancement, customers will have the option of ‘Try and Buy’; trying out the jewellery virtually looking at the AR screen. Customers can benefit from this advanced jewellery experience for a month starting from February 06, 2019 at Delhi airport and February 08, 2019 at Bangalore airport.

    Tanishq is implementing MirrAR, an Augmented Reality software platform in collaboration with StyleDotMe, a startup focused in innovative application of Augmented Reality (AR) and Artificial Intelligence (AI) for providing the next generation experience to consumers who are interested in the Gems and Jewellery industry. Using the platform users can virtually try on the jewellery in real time, without actually having to wear them.

    Sharing her thoughts on the launch of AR experience, Deepika Tewari, Associate Vice President, Marketing, Jewellery Division at Titan Company Limited said, “Tanishq has always aimed at providing the best for our customers and this fascinating initiative is one such approach in achieving the objective. Consumers have the option of browsing through multiple jewellery pieces virtually with just one click. The real-time customer experience will definitely strengthen the retail connection between the brand and our esteemed consumers; a transformative step on how India will shop and purchase jewellery in the near future.”

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