Youdao by NetEase Leverages AI to Broaden Education Services

On August 21, Chinese online education firms began adopting artificial intelligence technology to diversify their offerings. A subsidiary of a major tech company introduced new translation tools based on a large language model, Ziyue.

This subsidiary released an AI-powered dictionary pen capable of answering any questions and an audio-visual translation platform that offers a comprehensive workflow—covering transcription, recognition, translation, and dubbing.

Thanks to AI advancements, revenue from non-educational sectors is surging. Income from online marketing services saw a 24 percent increase, reaching a record high of 630 million CNY (approximately 87.8 million USD) in the last quarter compared to the previous year, according to the latest financial results.

The rapid expansion of cross-border live e-commerce, the international reach of Chinese short dramas, and similar ventures have created a strong demand for audio and video translation services. Zhang Yi, head of the smart application division, noted that the overseas e-commerce and short drama markets might currently be valued at around 10 billion CNY (about 1.4 billion USD), with expectations to grow into a 100 billion CNY market.

“Multi-channel networks face numerous challenges when translating livestream e-commerce content for international audiences, including compliance with regulations, cultural nuances, and originality standards,” Zhang explained. “Our product development plans aim to enhance solutions tailored to these specific needs.”

Embedding AI models into physical hardware has become a strategic goal for leading education companies, resulting in many new product launches during the first half of this year.

AI’s role in education is shifting from merely assisting with proactive learning to becoming a virtual instructor. Its cognitive abilities are approaching those of human teachers, stated Zhou Feng, CEO of the company, during a recent earnings call. Zhou also predicted that the market for educational smart hardware will likely exceed 34 billion CNY this year.