WeChat and Ant Group Bets on AI App Store, Giants Compete for ‘Apple Tax’

Tech Planet has exclusively learned that WeChat’s cloud development team is creating an application platform called ‘Cloud Development AI Agent.’ This is a multi-platform AI agent development framework designed to provide enterprises and mini-programs with a dedicated agent platform. Through this platform, users can achieve 0-code development to create personalized intelligent assistant products.

Coincidentally, Ant Group is also developing an AI application building tool called ‘Cheese Pie.’ The developer is Ant YunTong (Shanghai) Information Technology Co., Ltd., which is 100% controlled by Ant Group. Users can also build AI applications on this platform without any coding, supporting the creation of various product forms such as Alipay mini-programs.

Since the beginning of this year, AI agent application development platforms have become a new track for global AI platforms. In January of this year, OpenAI launched a platform called GPT Store, which allows users to create, discover, and use custom GPTs for various purposes, further lowering the threshold for the development and use of AI agent applications, and marking the arrival of the era of ‘AI application stores.’

Many Chinese internet giants have also started to position themselves in this space. Since the beginning of this year, they have successively launched alternative versions of the ‘GPT Store.’ For example, ByteDance’s Coze, Tencent‘s Yuanqi, and Baidu, Inc.’s APPBuilder, these AI application stores not only allow for the creation of AI agent products but also enable the distribution of the created products.

The internet industry is full of expectations for this new track. Baidu, Inc. CEO Robin Li stated in his speech at WAIC 2024, ‘Intelligent agents are the AI application development direction we are most optimistic about, and search is the largest entry point for intelligent agent distribution.’ At the 2024 Spring Volcano Engine FORCE conference, product manager Pan Yuyang introduced that Coze, a next-generation AI application development platform launched by ByteDance, will bridge the last mile from large models to user scenarios.

SEE ALSO: The ByteDance Version of GPTs “Coze” Is Now Online

There is no doubt that the ‘AI application store,’ which integrates product creation and distribution, has been regarded by internet giants as the arena for the second half of AI.

If major companies’ AI application stores emulate the business model of the App Store, relying on revenue sharing from the intelligent applications within the store, they are expected to create new growth points. Similar to traditional app stores, revenue sharing from applications is a significant opportunity.

According to Apple’s financial performance report for the third quarter of fiscal year 2024, software services revenue grew by 14.1% year-on-year, reaching $24.213 billion, accounting for 28.3% of total revenue. In the first quarter of 2015, Apple’s software revenue accounted for only about 6%, which has increased fourfold over nearly 10 years.

The impressive performance of service revenue is attributed to the ‘Apple tax,’ which refers to the revenue sharing from app income. Apple charges a commission on all digital content consumption for apps on its App Store, typically ranging from 15% to 30%. This fee applies to in-app purchases and subscription services.

Moreover, in terms of market size, intelligent agent applications are experiencing explosive growth. According to data from MarketsandMarkets, the global autonomous intelligent agent market size was $345 million in 2019, and it is expected to reach $2.992 billion by 2024, with an annual compound growth rate of 54% from 2019 to 2024.

This means that a large number of intelligent agent applications will appear in the form of software assistants, while existing assistant products in software form will also be upgraded to autonomous intelligent agents. Whoever owns the AI application store will also have commercial discourse power.

Nowadays, price wars in market competition are becoming increasingly intense. In order to seize market share, many platforms have lowered prices, even at the expense of profit margins. In May 2024, domestic large model manufacturers such as ByteDance, Alibaba, Baidu, Inc., and Tencent all adjusted the pricing strategies of their large model products, causing quite a stir in the industry.

Additionally, the development threshold for AI application stores still needs to be further lowered. However, many platforms currently face issues such as cumbersome operating procedures and unfriendly interfaces. Complex function settings and parameter adjustments confuse users, increasing the difficulty of use and the learning costs. For example, in the model configuration process, ByteDance Coze requires users to have a high level of technical knowledge, which is a significant barrier for users without a technical background.

As a container for intelligent agent applications—AI app stores have become a battleground for giants in the second half of AI. Currently, major players are still in the initial stage, and the main competition is yet to come.