The large-scale model is accelerating its implementation in the field of education.
On January 3rd, education technology company NetEase Youdao (NYSE: DAO) launched the first education big model in China, "Ziyue" 2.0 version, and launched multiple landing products and applications based on the big model in one go, including AI tutoring "Little P Teacher", Youdao Speed Reading, virtual human oral private teaching Hi Echo 2.0, and Youdao AI learning machine X20.
NetEase Youdao's "Ziyue" big model was officially released in July 2023, and passed algorithm evaluation and national "dual new" (new technology, new business information security) evaluation in October and November of the same year.
Compared to version 1.0, the biggest change of the "Confucius" Big Model 2.0 is the Search Augmented Generation (RAG), which is a framework that combines big models with external knowledge sources to improve question answering ability and avoid hallucinations.
A common consensus in the industry is that large models represented by ChatGPT are heavily biased towards science and face insurmountable challenges in science such as mathematics and physics. This phenomenon seems to have improved.
According to Zhou Feng, CEO of NetEase Youdao, the "Confucius" Big Model 2.0 not only improves parameters, but also adds RAG functionality, computational algebra, and other capabilities, making it "relatively good at finding solutions in mathematics, physics, and other aspects, with relatively industry-leading accuracy indicators."
Just half a month ago, TAL (NYSE: TAL) also launched the latest version of its learning machine - Xueersi xPad2 Pro, equipped with the mathematical model MathGPT, which is the Nine Chapters Model. The company emphasizes its functions in automatic problem-solving in mathematics and correcting complex application problems.
According to Zhao Puzheng, the product manager of Xueersi Learning Machine, based on the Nine Chapters Model, "Mathematics Asking at Any Time" can solve 80% of math problems in primary and middle schools as soon as possible. For those who cannot answer temporarily, they can upload live person explanations within one hour and generate AI video analysis within 20 minutes.
In contrast, NetEase Youdao's latest learning machine, the AI Learning Machine X20, claims its biggest selling point to be the "three in one" model, which integrates learning machines, practice machines, and student exclusive computers.
In the learning machine mode, X20 has two selling points: firstly, the newly launched AI tutor, Teacher P, supports free Q&A for all subjects and multiple rounds of interaction. The second is the world's first virtual human oral private teaching Hi Echo 2.0, which has been iteratively upgraded.
In the learning and practice mode, NetEase Youdao mainly seeks external cooperation to avoid content shortcomings. The built-in "5-year National College Entrance Examination · 3-year Simulation" in X20 is a relatively high recognition and high demand practice question resource among current student groups.
In computer mode, X20 provides some differentiated functions, such as typing practice, programming practice, and parental control.
In terms of price, the Youdao AI learning machine X20 is priced at a mid to high end in the industry, with a price of 5999 yuan for 8G+256G and 7999 yuan for 16G+512G.
By comparison, Xueersi's xPad2 Pro Max and xPad2 Pro, which have exclusive teaching resource advantages, have an initial launch price of 8599 and 6599 yuan respectively; The Little Ape Learning and Training Machine, which focuses on learning and training functions, is priced at 4299 yuan with an initial launch price of 3899 yuan.
At present, the prices of learning machine products on the market vary greatly, ranging from thousands of yuan to tens of thousands of yuan. The price range of iFlytek learning machines is concentrated at over 4000 yuan, targeting the high-end market; The price of Xiaodu learning machines is concentrated below 4000 yuan, forming a mismatch competition between the two. According to data statistics from iResearch Consulting, the price range for Chinese consumers purchasing learning tablets in 2022 is concentrated between 2001 and 3000 yuan, accounting for 43.4%.
The serious homogenization of educational intelligent hardware products has become an industry consensus, and some even engage in price wars, leading to vicious competition in the industry. In order to further capture the market, major brands are constantly "rolling" hardware parameters and launching new product concepts.
In 2023, with the explosion of big models, incorporating AI big models into educational intelligent hardware has become an option for some brands to avoid homogenization.
Brands such as Xiaodu, iFLYTEK, Xueersi, Homework Help, and Reading Lang are currently launching learning machines that combine with large models. The newly added AI functions are mainly implemented in oral practice, essay correction, personalized learning, and other scenarios. With the support of AI technology, the prices of these intelligent learning machine products are usually high, basically above 5000 yuan.
A clear consumption trend in the learning machine industry is that the market share of high-end new products has increased.
The monthly tracking report on the online retail market of Chinese learning tablets released by industry research institution Lotu Technology shows that traditional education hardware enterprises represented by Bubugao, Xiaobawang, Youshixue, etc. are gradually being taken over by emerging technology enterprises represented by Xiaodu, iFlytek, and Little Ape.
From the first quarter of 2022 to the second quarter of 2023, the market share of high-end products priced between 4000 yuan and 5000 yuan has increased from 5.9% to 28.1%; The market share of high-end products priced above 5000 yuan has increased from 5.8% to 12.8%; The market share of low-end products priced below 2000 yuan has decreased from 74% to 41%.
In May 2023, Zhejiang Securities also pointed out in the "AI Industry Learning Machine Special Report" that with the continuous deepening of learning machine products combined with AI technology, the diversification of functions will drive the increase of consumer willingness to pay, and high-end learning machine categories will gradually occupy the leading position in the industry.
However, from the consumer side, the overall electronic consumer market has not yet returned to its previous active state. NetEase Youdao's intelligent hardware business generated a revenue of 251.9 million yuan in the third quarter of 2023, a year-on-year decrease of 29.3%. The company explained that it reduced the marketing channels for low return on investment intelligent learning products during the period.
In a media group interview after the press conference, Zhou Feng mentioned the issue of declining hardware sales. "Overall, consumer electronics is still not doing well this year, and consumer purchasing power is relatively weak. The entire industry is a chain, and the downturn will spread from consumers to manufacturers, and then to the backend supply chain. If we can face reality together and 'endure some hardship' together, we can withstand the cycle."
On the other hand, Zhou Feng believes that the biggest opportunity throughout the entire "downturn" cycle is innovation, in order to improve efficiency and productivity. The main task of NetEase Youdao's hardware business at present is channel restructuring, which will accelerate the launch of new products and rely on mature products to drive performance.
At the level of empowering business with big models, Zhang Yi, the product manager of Hi Echo, told Interface Education that Youdao Translation's subscription revenue increased by 160% year-on-year compared to the entire membership translation in the third quarter of 2023.
In addition to hardware consumption, in terms of software commercialization, taking the virtual human oral private teaching Hi Echo launched this time as an example, as a separate software download, its main profit model is membership payment, with continuous monthly subscription of 68 yuan/month, annual membership of 698 yuan/year, and continuous annual subscription of 498 yuan/year. As an additional feature, Hi Echo is available for free on other hardware of NetEase Youdao, such as the X20 learning machine, Listening Treasure, Youdao Dictionary Pen X6 Pro, etc.
The payment mentality of domestic users is not as mature as that of overseas users and is still being cultivated. In Zhang Yi's view, consumers used to be accustomed to free tools and software products, but in the era of big models, this logic needs to be rewritten.
"2024 will definitely be the first year of a true AI super application, with many AI super applications landing one after another." Zhang Yi told Interface Education, "This year, next year, or the next three to five years, big models and AI will reshape users' payment mentality for software."
When it comes to the impact of big models on performance, Zhou Feng expressed optimism and relatively rational investment. "There is no comparison of indicators or model scale, and there is no way to come up with models that exceed 100B. They can basically solve the problem within the original budget framework."
In the current "Hundred Model Battle", not only technology giants are "rolling" large models, but education companies are also accelerating the implementation and application of large models. What are the key competitive points?
In the field of education, Zhou Feng's answer is his understanding of educational scenarios. "Everyone uses chips, but the things they produce are different. For example, in this scenario, why use this tool and what kind of functions it provides truly help users?"
In his view, large models are a brand new technology with strong language understanding and generation capabilities. They are like a pure knife. To truly use them well, it is necessary to combine understanding of the scene, integrating surrounding facilities, resource content, etc., and do a good job as a whole to make a complete and useful product.
The past year of 2023 was the starting year of AIGC, and big models continued to give birth to new business models. Various companies are accelerating the implementation of big model applications. Many industry insiders believe that this year and the next two years will be the key years for the implementation of big models, and will also become the main trend in the development of artificial intelligence in the coming years.