Youdao(US:DAO) 3 6 Ke·2024-01-08 05:14Core Insights - The core focus of the article is on the advancements and applications of AI in the education sector, particularly through the launch of NetEase Youdao's upgraded educational AI model "Ziyue" 2.0 and its associated products [1][3][4]. Group 1: AI Model and Applications - NetEase Youdao has released the "Ziyue" 2.0 version, which significantly enhances the accuracy of responses by utilizing Retrieval Augmented Generation technology, thereby reducing hallucination issues [1][3]. - The company has introduced three new AI applications: AI home tutor "Xiao P Teacher," Youdao Speed Reading, and virtual speaking tutor Hi Echo 2.0, following the launch of six major AI applications in July [3][4]. - Hi Echo, a virtual speaking tutor, operates on a subscription model with pricing set at 68 yuan/month or 698 yuan/year, and has nearly one million registered users [4]. Group 2: Market Strategy and Consumer Behavior - The company aims to reshape consumer perceptions regarding software payment, noting a strong willingness among users to pay for effective AI products [4][5]. - The AI learning machine X20, which integrates the "Ziyue" model and other AI applications, is positioned to assist parents in tutoring their children, addressing a significant market demand [4][5]. - Despite a decline in revenue from smart hardware in Q3 2023 due to marketing channel adjustments, the company remains optimistic about technological innovation driving hardware sales growth [4][6]. Group 3: Competitive Landscape and Future Outlook - The competitive edge of NetEase Youdao lies in its comprehensive capabilities, including educational training experience, software, and hardware design [6][7]. - The company emphasizes the importance of practical applications of large models in education, predicting that 2024 will be a pivotal year for AI super applications in the sector [7]. - The integration of high-quality data with foundational models is crucial for enhancing educational outcomes, as demonstrated by the improved performance of the AI applications [6].