TikTok’s AI Strategy: ByteDance’s Global Ambitions

Soubhagya Dash
PGP/25/116
Section A

1. What role does AI play in ByteDance's TikTok product? Is it different from

recommender systems? How does AI create value for consumers of these
products?

Role of AI in Toutiao With over 4000 distinct partner sites, it assisted in

curating daily news for users. It aids in content
customization, the establishment of an advertising-
based business model, acquiring a competitive
advantage over competitors such as Buzzfeed, and
increasing market share quickly.

Role of AI in Tiktok AI assisted content creators with multiple filters and

upgrades for production of quality videos by analysing
consumer behaviour in new cultural elements, self-
learning algorithms to stream tailored films, and AI
assisted content creators with various enhancements to
make better videos.

Role of AI in both platforms AI aided in the addition of stickiness to both apps,

boosted the learning impact gained from these
platforms as well as the significant network effects
generated from them.

Value Creation for Consumers of ByteDance

 Content Creators: To create virtual films in Tiktok and use Toutiao's bots for self-
reinforcement learning.
 End Users: Analysing the consumer behaviour to customize the content along with free
of cost access and providing permissions for diversified content
 Advertisers: There is a substantial network effect that can assist in more efficiently
targeting customers. There's also customer acquisition and sales conversion to consider.

2. How difficult is it for competitors like Facebook and Google to imitate the
success of TikTok? What is their best strategy to compete in this space?
The essential features in these applications are:
 Like, comment and Sharing Features
 Face Filters and Enhancers
 Pop-up Notifications with sound
 Uploading of Audio and Video and files
 Login and Splash Screen
 Simple User Experience and Navigation
The essential advanced intelligence for application creation
 Cloud Storage,
 Artificial Intelligence for filtering and personalizing data
 Databases for Payments
 Real-time analytics for notifications alerts.

The experts required for such development: UI/UX Designers, Android and iOS developers,
Database Experts, QA experts, Delivery Experts and Product Managers. The creation of App
will cost around $150,000 to $250,000 to inculcate the required features and functionalities.

Main competitors:
Facebook – They already have elements such as tales that may be leveraged to create a
Tiktok-like experience. Furthermore, Facebook has created Lasso, a Tiktok clone that is its
response to the highly popular Tiktok
Instagram – Its parent company FB has helped in launching Reels and IGTVs to compete
against Tiktok. Post the Ban of Tiktok, these features gained huge popularity.
Snapchats : The use of 24-hr status and updation of photos with filters had a huge fanbase.

3. How difficult is it for competitors like Facebook and Google to imitate the
success of TikTok? What is their best strategy to compete in this space?
The new applications that ByteDance can build using AI capabilities and their value that AI
provides is:
 Agriculture – Because the majority of users are from areas where agriculture is the
primary source of income, AI may be used to offer weather forecasts, soil and crop
analysis reports, and other information.
 Gaming – Users' interests may be analysed using their current user base, which can
subsequently be leveraged to gain a competitive edge.
 Customer Relationship Management Tools – They may use AI to enhance productivity
and efficiency by leveraging the data they already have about their consumers.
 Chatbots – Could reduce the number of grievance redressal and can increase efficiency
due to real-time data.
 Social Media Platforms – In order to improve user engagement, Artificial intelligence
(AI) can enhance the user experience.

4. How difficult is it for competitors like Facebook and Google to imitate the
success of TikTok? What is their best strategy to compete in this space?
Possible solutions that can be taken to alleviate Government tensions:
 ByteDance/top Tiktok's executives can arrange meetings with concerned government
authorities for discussion of application’s security concerns.
 Modifications in the data/privacy policy can be made, which will aid in gaining the
trust of the users.
 ByteDance should also post a video on social media detailing the efforts they've done
to comply with the rules of every given nation. If and when the prohibition is lifted,
this will make it easier for users to use the programme.
 If certain features/functionalities are judged to be dangerous to a country's security,
they might be deleted or changed.