Ant Group has received Chinese government approval to release products powered by its “Bailing” artificial intelligence (AI) large language model to the public. The model is anticipated to augment the company’s financial sector offerings and facilitate delivering more customized and efficient services to clients. However, deploying AI technology in the financial industry raises concerns about data privacy and security. Ensuring appropriate safeguards to protect customer data and to comply with relevant regulations is vital for companies like Ant Group.
The move marks a milestone for the Chinese fintech giant, positioning it as an industry leader in China’s rapidly evolving AI-driven finance sector. It also illustrates the importance placed by the Chinese government on security assessments and regulatory compliance in ensuring the responsible and safe deployment of advanced technologies.
In September, Ant Group unveiled its finance-specific AI model and began testing consumer and professional applications to tap into the full potential of the technology. It’s a proactive approach to leverage AI-driven solutions in the financial industry, which will significantly improve the quality and efficiency of existing services.
Unlike other countries, China requires that companies submit security assessments and receive clearance before releasing AI products to the public. This ensures that the tech will not harm the nation’s citizens and helps protect personal information from hackers. It’s a significant step in a country that has long been a leader in regulating the use of technology.
It is an encouraging sign that China continues to prioritize the responsible and ethical use of AI, which can be a significant driver for economic growth as the country strives to become a world power in the next few decades. The approval of Ant Group’s Bailing-powered products by the Chinese government is an excellent step in advancing AI-driven financial services in China and worldwide.
China’s regulators have been increasingly concerned about the rise of online lending platforms and whether they could create a risk for the country’s financial system. They have clamped down on shadow banking. That’s in addition to efforts to reduce corruption, including using illegal financing.
This year, Alibaba’s financial affiliate, Ant, reworked its business plans and raised fresh funding to address regulator concerns. However, an IPO revival remains years away, partly because the company is still waiting for Beijing to grant a financial holding license to regulate it more like a bank.
Ant has defined AI as one of its core strategies during its six-way spinoff and has been rolling out new products. Its commerce unit recently introduced tools, such as chatbots, that aid small businesses in expanding overseas. Meanwhile, its Ant Cloud platform now hosts half of China’s generative AI firms and serves about 80% of China’s technology companies. Its Hangzhou-based parent, Alibaba Group Holding Ltd, is focusing on AI as well, pushing its own commerce and retail businesses to focus on the technology. Its Alipay mobile payment service now uses its popularity to gather user insights and help boost sales for small merchants.