0830 GMT - AI is reshaping China's search engine landscape, Nomura analysts Jialong Shi and Rachel Guo say in a research note. Both Tencent and Baidu have begun tests to incorporate DeepSeek's AI model. While AI search offers more comprehensive responses compared with conventional search, its answer quality varies across different inquiries due to technology limitations at the current stage, the analysts say. AI search is likely to quickly gain user engagement, though traditional bidding-based search advertising models may not translate effectively to AI search formats, they say. Baidu may have to push its AI search harder, even at the cost of its search revenue in the near term, amid intensified competition, they add. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 17, 2025 03:30 ET (08:30 GMT)
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