Baidu Inc (ADR) (NASDAQ:BIDU) and Xiaomi are teaming up in order to “establish in-depth cooperation” in the worlds of artificial intelligence (AI).
The Chinese tech giants are exploring ways to improve the consumer experience in regards to the Internet of Things (IoT), especially smart devices and consumer electronics. The companies will seek to cooperate in a number of areas, including deep learning, voice recognition and conversational AI.
“Xiaomi has accumulated solid experience in smart hardware, big data and established a smart devices ecosystem,” Qi Lu, Baidu’s vice chairman, group president and COO, said in a statement recently.
Lu added that Baidu has a strong structure in the world of AI, including its conversational AI system DuerOS. He said the company is using its world-leading AI technologies and information ecosystems to help propel the IoT industry into the future.
The two companies are paving the way to improve AI not only in China, but around the world.
An analytical study from the McKinsey Global Institute discovered that the potential economic impact of the IoT, including consumer surplus, in 2025 could be gargantuan, reaching anywhere from $3.9 trillion and $11.1 trillion.
Accenture conducted a similar study to measure how big of a chunk of the world’s economy will depend on AI and IoT, noting that the industrial IoT could add roughly $14.2 trillion by the year 2030.
BIDU shares fell 1.7% Tuesday.