Internet AI roadmap: Smart speakers in B2C and cloud services in B2B Internet firms’ AI businesses taking shape Overweight (Maintain) The artificial intelligence (AI) businesses of global and domestic internet companies are increasingly taking shape and entering the execution phase. The most notable Industry Report development in the B2C space is the launch of AI-based voice-controlled speakers. In the B2B space, cloud services supported by AI are gaining increasing attention. June 19, 2017 B2C: Launch of voice-activated speakers and everyday services Mirae Asset Daewoo Co., Ltd. An increasing number of everyday services integrated with voice-controlled speakers and AI platforms are coming onto the scene. Amazon (NASDAQ: AMZN, [Internet/Game/Advertising] CP: US$995.17) is the current leader of this market, with its Echo smart speaker and Jee-hyun Moon Alexa virtual assistant. Last week, the company launched an Alexa-enabled smart +822-3774-1640 shopping device called Dash Wand the same day it announced its US$13.7bn
[email protected] acquisition of the Whole Foods grocery chain. Also last week, NAVER’s Japanese subsidiary, LINE, unveiled smart speakers, named Wave and Champ, to which LINE will tie services like shopping and delivery. Domestically, both NAVER (035420 KS, BUY, TP: W1,160,000, CP: W878,000) and Kakao (035720 KQ, BUY, TP: W125,000, CP: W103,800) plan to release their own voice-controlled speakers this summer. B2B: Rapid growth of cloud services among firms strong in AI IT companies with strong AI capabilities are seeing rapid growth in their cloud revenue. Amazon , IBM (NYSE: IBM, CP: US$154.84), and Microsoft (NASDAQ: MSFT, CP: US$70.87) - with the Alexa, Watson, and Cortana, respectively - are enjoying double-digit growth in cloud revenue, which now makes up a meaningful percentage of overall revenue at all three companies.