TikTok’s AI Strategy: ByteDance’s Global Ambitions

Submitted to:
Prof. M. P. Sebastian

Submission by:
Piyush S Sonawane
PGP/25/115
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?
• The amount of data produced by both humans and machines today significantly
surpasses our capacity to consume, analyse, and make decisions based on that
data. All machine learning is built on artificial intelligence, which also serves as the
basis for all difficult decision-making. In order to make the best decision,
computers are quite effective in calculating combinations and permutations. The
basic future of enterprises is AI and deep learning, which is the logical extension
of machine learning.
• TikTok is an app that enables young people to create a range of films, including
dancing, magic tricks, and amusing videos, to satisfy their pleasant hidden desires.
The AI algorithms on TikTok can quickly understand what people want. They keep
track of the user's "likes," comments, and feedback as well as the duration of each
video viewed. This aids TikTok in determining user preferences and retaining them
for longer periods of time.
• Toutiao employs artificial intelligence to curate daily news and articles for users
from its partner websites. Toutiao will provide a distinctive consumer experience
by understanding its users using the machine-learning algorithm of the app and
customising information for each user. Through the use of attention-grabbing and
up-to-date content, Toutiao has been able to draw in the younger generation,
which is more engaged in entertainment.
• By giving both customers the information, they prefer and can relate to more, AI
produces value for both of them. Users benefit from this since they have access to
more content that is better suited to their preferences.

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?
These programmes can be imitated, and several companies are already doing so. The
following are the key considerations:
▪ AI Algorithm
▪ Adequate Marketing
 ▪ Emphasizing Early Adopters
▪ Chinese Aversion
▪ Deep Pockets
▪ Regulations
• The majority of the aforementioned ideas fall short of developing a successful blue
ocean strategy for apps like TikTok or Toutiao. Since firms like Facebook, Instagram, and
Amazon have already mastered this field and made substantial advancements in it, AI
algorithms are simple to copy.
• In-shorts, Instagram Reels, YouTube Shorts, Facebook Lasso, and Byte App may be the
main rivals for these apps. It has recently gotten more interactive and attention-grabbing
with the addition of Instagram Reels.
• Given their technological know-how and substantial financial resources, it may be
concluded that apps with an established user base like Facebook, Instagram, Twitter, and
even Amazon can quickly enter the "short Video form" entertainment market.

3. What new application should ByteDance build using its AI capabilities? What value does
AI provide there?
The most well-known AI-Powered Products from ByteDance is Toutiao, which is literally
translated as news. It's also known as BuzzFeed with intelligence. Artificial intelligence has
developed over the past few years into a well-known buzzword in a variety of businesses.
Since AI is so well-known, it is anticipated that until 2022, prominent tech investors would
invest approximately three times as much in AI. Leading IT companies have continued to
express interest in investing in artificial intelligence, which has led to the technology being
used in an increasing number of goods and applications. Despite the fact that AI
technology has been useful

The mobile app development sector offers one of the most potential applications for AI,
with implementations in the healthcare, education, and financial sectors.
• ByteDance can concentrate on the following projects because to their extensive
experience utilising AI technology:
▪ Making voice helpers easier
▪ Fintech Start-ups o Health tech start-ups (AI support) (AI support)
 ▪ Digitalizing businesses
▪ Service-based AI
▪ Making AI-powered navigation tools
• The operations of all of the aforementioned endeavours are strikingly similar to those
of ByteDance. Therefore, they wouldn't need to make a significant alteration if they
entered one.
• The company must think about expanding their horizon and primarily try to enter the
service business due to immense business expertise and acumen in the particular sector.
• The company can always keep experimenting at the edge to find out new opportunities
or it can definitely re-invent itself at roots to become a completely new service provider
kind of a company.

4. What should TikTok do in response to government fines? Can ByteDance find a way to
censor its content to the satisfaction of Chinese government? What other solutions are
possible?
Due to the frequent data security issues that these applications face, governments from
nations like India and the United States of America have banned apps like TikTok. TikTok
retains the standard level of intrusive app access; theoretically, it could be used by the
Chinese intelligence services as a gateway to track specific users or gather sensitive
information. The issue is that laws pertaining to the rule of the People's Republic of China
require that all Chinese apps provide their user data to the Chinese Government as a pre-
legal obligation.
• In addition, these apps raise societal concerns by encouraging aggression (abusive
behaviour) among a target audience as young as 14 years old.
• Additionally, the app had a sizable user base with a demography of people who resided
in rural areas of developing nations like India. Additionally, the software was being used
to promote criminal and immoral behaviour.
• TikTok's options include privatising data, which entails entering into a contract with
governments to route all traffic and data through secure local servers. Government-
recognized businesses can maintain and oversee these servers.
• The next step would be to establish a strict "no tolerance" policy regarding sexual and
copyrighted content. Additionally, carefully scrutinising the uploaded videos is necessary
to look for any evidence of illegal or criminal activity.
• AI and reinforcement learning can be used for this, together with human interaction.
• Because these apps also bring in a significant amount of investment and generate a
significant amount of new employment, ByteDance must assist governments in
understanding the economic implications of such acts. Along with this, the app has given
voice to the underprivileged so they can demonstrate their basic abilities and capabilities.
• As a result, ByteDance must make the most of its current AI capabilities in order to win
over governments and contribute to the restoration of the jobs that the app once created.