OpenDNA signs distribution deal to roll out AI platform in China
Chinese online consumers are expected to account for more than half of global online retail sales this year.
Artificial intelligence (AI) and e-commerce marketing company OpenDNA (ASX: OPN) has inked a deal with Chinese high-tech agency Qingdao Edge Technology Company (QEdge), which will see its AI platform rolled out in the world’s largest online market.
Under the agreement, QEdge will market and sell OpenDNA’s AI and machine learning technology on a non-exclusive basis in China, where online consumers are believed to generate more than half of the world’s digital data.
OpenDNA’s AI system offers personalised real-time, targeted marketing that allows brands to better market products to consumers based on their profiles and behaviours.
It works by tracking user interests in apps and web platforms to build psychographic maps of these interests, adding third party data that predicts and delivers information relevant to each individual consumer based on their profile and previous behaviour.
The company is confident that its platform will have wide application in China, where consumers are considered early and eager technology adopters, as reflected in smartphone penetration rates across the country.
“Industry forecasts show that in 2019 the country will account for over 55.8% of all online retail sales globally,” it stated.
According to the company, other research has estimated more work activities in China can be automated than any other country in the world, at 51%.
Government support for the AI sector
In addition, the platform rollout is expected to benefit from China’s strong government support for the AI sector it aligns with the State Council-issued ‘New Generation Development AI Development Plan’.
This plan prioritises China’s focus on AI applications and has set specific benchmarks including a targeted gross output of RMB 1 trillion (A$200 billion) for the core AI industry and a whopping RMB 10 trillion (A$2 trillion) for related industries by 2030.
OpenDNA managing director Bryan Carr said the two companies will work together to target sectors where they think they can deliver quick improvements in China’s online market through the application of its AI platform to sectors such as e-commerce.
“Based on the large volume of data being generated online every day and the alignment with the State Council-issued AI development plan, we see this as a great opportunity to expand into new industry sectors and generate new revenue streams for both companies,” QEdge general manager Xiaodong Wang added.
Recent deals
OpenDNA has moved from strength to strength in the last few months, snapping up a string of partnerships including an agreement with Sightseeing Pass Australia to market and sell Australian tourism packaging to Chinese travellers.
It also inked a deal to integrate Novatti Group’s (ASX: NOV) China Payments platform into its own RooLife portal, allowing Chinese consumers to pay for products and services in Australia using WeChat and Alipay.
Last month, it also announced an agreement to acquire Sydney-based digital strategy and tactics company Blackglass from IncentiaPay (ASX: INP).