Summary of the Key Points
This article highlights a crucial turning point in the industry: Over the past two years, domestic AI products have gained hundreds of millions of users by offering them for free. However, behind the surface of this apparent success, each AI request actually incurred significant server costs, resulting in greater losses for the companies. By the summer of 2026, four major companies—ByteDance, Alibaba, Tencent, and Baidu—simultaneously launched AI-powered office products, signaling the end of the era of free AI for everyone. These companies did not adopt a uniform approach to monetization:
- ByteDance leveraged its 400 million consumer users to integrate AI into corporate work processes.
- Alibaba tied AI directly to its e-commerce and local services to earn commissions.
- After investing 1 billion yuan in promotional offers, Tencent focused on developing office intelligence tools that could be practically applied in work.
- Baidu used a variety of products and government-enterprise cloud services to generate stable revenue.
The reason why the office scenario became the focal point for AI monetization is that it is the only area where AI can provide tangible results, allowing workers to truly experience the value of saving time—perhaps even replacing current applications like Lark and DingTalk as the primary entry point for using computers on the internet.
Detailed and Easy-to-Understand Explanation
Why the Free Offer Ended Suddenly in the Summer of 2026?
The free AI model of the past two years has created a misconception that AI services should be free. However, the companies have been incurring substantial costs. Every time an AI function is used (e.g., generating text, images, or organizing meeting notes), high-end GPUs are used, leading to significant hardware and electricity expenses. For example, ByteDance’s DouBao app has seen its user base increase by 1,500 times in just two years, with nearly 400 million active users. This rapid growth has only exacerbated the company’s losses due to increased server costs.
Companies were initially willing to spend money to attract users, fearing they would miss out on the market. But now that the user base is relatively stable, they can no longer afford to continue losing money. However, directly charging for AI services has faced resistance because users are accustomed to the free model and think they already have enough with the basic features. Therefore, the companies shifted their focus to the office sector, looking for new ways to make money.
The Different Monetization Strategies of the Four Companies
Each company has a unique approach to monetization, avoiding the common issue of users not wanting to pay for AI services:
- ByteDance: With 400 million consumer users, it integrated AI into Lark, allowing users to use AI to create documents, make PPTs, and access meeting notes without switching apps. It then charges companies based on the number of users.
- Alibaba’s Qianwen: This service doesn’t charge users for AI services. Instead, it helps with tasks like booking massage devices and completes orders on Alibaba’s platform, incorporating the cost of AI into its regular transactions without users even realizing it.
- Tencent: It tested AI products with promotional offers and later focused on developing practical office tools like WorkBuddy. It doesn’t set revenue targets for these tools but prioritizes providing a great user experience.
- Baidu: It launched multiple AI office products and uses its cloud services for businesses, targeting both small companies and large state-owned enterprises. Its revenue comes from selling computing power and cloud services, with 100% of major domestic banks and 80% of state-owned enterprises as its clients.
Why the Office Sector?
The office sector is the ideal platform for AI monetization because it offers tangible benefits. AI can help with tasks like organizing meetings, creating PPTs, and saving time, which users can immediately value. Moreover, this area is crucial for gaining control over the internet traffic flow, as it determines which applications become the primary tools for businesses.
The Real Impact of AI in the Workplace
The high penetration rate of AI in the workplace is not just about the size of the models or the number of users. The real competition lies in the ability to complete tasks effectively. Many AI products were initially ineffective, but now companies have improved their success rates significantly (e.g., to over 90%). The current total monthly active users of AI office tools in China is only 30 million, indicating significant potential for growth. The company that can most effectively complete tasks will have the power to set prices and will no longer rely on free offers to attract users. The real reshaping of the AI industry is just beginning.