CX Briefing: Baidu’s Revenue Slides Amid AI Pivot

A rundown of the news making headlines in and around China:

Baidu’s sliding revenue: Baidu Inc. saw the decline in its advertising revenue accelerate in the second quarter, as the search engine giant’s pivot to artificial intelligence (AI) hit its core business. Advertising revenue fell 15%, marking a fifth consecutive quarter of contraction. Overall revenue fell 4% and its core business’ profit tumbled 34% to nearly 4.8 billion yuan ($668 million). The company has previously admitted that offering AI-generated answers to queries has had a direct impact on advertising revenue. However, founder and CEO Robin Li said AI contributed to a 5% increase in the Baidu app’s monthly users and a 4% increase in how long the average user spent on the app.