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JD.com Supplies Dubai-based B2B Platform to Boost E-commerce in the MENA Region

by Guo Ji

Tradeling, a Dubai-based B2B e-commerce platform, has partnered with JD.com to sell products supplied by the Chinese e-commerce giant on its platform, enabling Tradeling to provide its business customers with high quality Chinese products in the MENA (Middle East and North Africa) region. The partnership was announced this week.

For a limited period of time, Tradeling will offer free delivery service for the goods supplied by JD.com to its customers. The partnership is expected to provide local businesses with access to millions of Chinese products such as electronics, beauty products, home furnishing and more. Tradeling will also look at opportunities to leverage JD.com’s unparalleled logistics advantages to power fast delivery service for its customers.

“China is an important global market in which we have had long-standing business relationships,” said His Excellency Mohanmmed AI Zarooni, director general of Dubai Airport Freezone Authority (DAFZA). “This partnership with JD.com will provide access to a key trade route to further enhance the buying power of regional buyers through highly competitive rates.”

“Our partnership with JD.com will give businesses in the MENA region the ability to access products from Chinese manufacturers at competitive prices, while having the added benefit of JD.com’s logistics and warehousing services,” said Marius Ciavola, CEO of Tradeling. “Our ultimate aim is to provide seamless trade at the best prices. This partnership does just that and gives MENA business buyers a greater customer experience.”

Marco Mao, general manager of JD.com’s Europe, Middle East and America Region Business, said: “We will bring a wide range of quality products to customers in the MENA region through the partnership with Tradeling, catering to the procurement needs of local enterprises.”

According to the partnership, the two parties will also explore private label business.

 

(press@jd.com)

JD Foundation Launches Children Books Donation Campaign 2021

by Vivian Yang

JD.com started a new round of its children books’ donation campaign on Apr. 23 to coincide with World Reading Day 2021.  From Apr. 23 to May 19, people in 27 provinces, municipalities and autonomous regions in China may donate books by a few simple clicks on JD’s app.

Once the book pick-up appointment is made through the JD app, JD’s couriers will collect them free of charge. All of the books will be sent to charity organizations for selection, sorting and disinfection before being delivered to designated schools.

Donated books are required in good condition to be eligible for the program. Picture books, educational books, classic literature and reference books for children between 5 to 12 years old are preferred.

“The entire book donation process is tracked in JD’s system,” said Chen Zeng, vice president of JD.com. “Donators can easily find the whereabouts of their donated books and charity organizations will also publicize their book handling details on the platform to keep a transparent record.”

This campaign, started in 2015, is the e-commerce giant’s flagship charity initiative aiming at increasing reading access for children in China’s rural and underdeveloped areas. It draws increasing attention and participation from society over the years. This year, the program will continue to be organized by JD Foundation, People’s Daily, China Social Assistant Foundation and Stars Youth Development Center, and supported by JD Books, JD Reading and JD Logistics.

Before the public campaign, JD Books has offered 500 books to a middle school in Beijing for children of migrant workers. Meanwhile, JD Reading donated dozens of e-readers and hundreds of e-books and audiobooks to charity organizations, in an effort to enrich children’s reading choices.

“Every book has the potential to change a child’s life. We are pleased to see that more and more caring people and organizations join this campaign this year to satisfy more children’s thirst for reading,” Zeng added.

 

(vivian.yang@jd.com)

 

Posted in ESG

In-depth Report: Pursuing the Broader Future of Intelligent Medical Services

by Hui Zhang

In a speech to more than 1,000 colleagues after the ceremony of JD Health listed on the Hong Kong Stock Exchange in late 2020, CEO Lijun Xin specifically highlighted Dongyuan Wang, general manager of JD Health’s Intelligent Medical Services department, as a true professional whose extensive understanding of pharmacy medical services perfectly match with JD Health’s business needs.

Her track record speaks for itself. Within one year after Wang joined JD Health in 2018, her team became profitable and has continuously achieved various milestones. “I am grateful to Xin for giving me the opportunity to work here and pursue my goals,” said Wang.

She has led her team in partnership with the Third Hospital of Peking University to create an AI-based prescription review and analysis system, and cooperated with Tianjin Nankai Hospital to build the Nankai JD Internet Hospital during the pandemic. Additionally, JD Health launched its first Internet hospital for Traditional Chinese Medicine (TCM) in cooperation with the First Affiliated Hospital of Henan University of Chinese Medicine. Leveraging JD’s big data, AI, 5G among other technologies, Wang also led her team to promote the construction of “Health City” projects in several cities including Beihai in Guangxi, Taicang in Jiangsu and Hebi in Henan.

From Left to right: Lijun Xin, CEO of JD Health, Dongyuan Wang, General Manager of JD Health’s Intelligent Medical Services at Celebration Ceremony to Mark JD Health's Successful Listing on HKEX

From Left to right: Lijun Xin, CEO of JD Health, Dongyuan Wang, General Manager of JD Health’s Intelligent Medical Services at Celebration Ceremony to Mark JD Health’s Successful Listing on HKEX

All of her accomplishments at JD Health are the result of her past experiences, which paved a way for her entry into the healthcare industry, even starting from the time when she was only a little girl.

“I always believed it was my fate to enter into the healthcare industry,” said Wang.

Finding Inspiration

Wang was born in the northeastern Chinese city in Heilongjiang. Her father was a dentist who later operated an offline pharmacy that was the first of its kind in the city. Recalling the memories of her childhood, Wang seemed to realize that everything was arranged by fate.

“I helped my parents to take care of the business in the store if they were caught up in other things,” said Wang. “So in a way, I can say I’ve been involved in the medical industry since I was only 9 years old.”

She joined IBM’s big data analysis product line, accumulating nearly 15 years of working experience related to information technology, offering solutions to various of organizations including hospitals and medical institutions.

In 2016, the computer program AlphaGo sealed a 4-1 victory over Go grandmaster Lee Sedol, in an unexpected victory that reinforced Wang’s belief in the power of technology to change the world.

“Previous to that victory, I would never have imagined that technology could surpass human beings,” Wang said. “I realized that we had underestimated the power of technology. Suddenly I saw the full scope of potential.”

 

Dongyuan Wang at Panel DiscussonDongyuan Wang at Panel Discusson

Dongyuan Wang at Panel Discusson

Paving Her Own Path

In 2016, Wang started her own business with partners, providing intelligent healthcare solutions to hospitals and medical institutions.

Running a business comes with many challenges. During her first three years of entrepreneurship, Wang never took a weekend off, and she did everything herself, from equity allocation to talent recruitment. In order to recruit as many talents as possible, she visited more than 10 colleges and universities by herself in a year and patiently introduced her business to students again and again. She was eager for knowledge, which helped her deal with the intensity of the work load and various new challenges.

“I always believed that there was a lot for me to learn,” Wang said. “Setting up our own business brought me back to the beginning of my life journey,” she said, recalling her early years working for her family drugstore.

Over three years of entrepreneurship, she was and studying for an EMBA program at the same time. She remembered working with and learning from frontline physicians to enrich her clinic experiences; and also learned from IT engineers how to mark each gastroscopy image to assist with the computer’s machine learning.

She recalled a fond memory of cooperation in 2017 with a renowned general hospital in Shanghai, Ruijin Hospital, on the precision of medication for children with Acute promyelocytic leukemia (APL), the M3 subtype of acute myeloid leukemia (AML) subtype. Arsenic trioxide is helpful in controlling the M3 subtype of AML, and can effectively control the progression of the disease. It is widely used in clinical applications, but arsenic trioxide is highly toxic and potentially life-threatening if it is taken in the wrong dosage. Through in-depth research with professional doctors and technicians, she found that technology could provide doctors with guiding doses of medication, ensuring the safety of sick children.

Wang’s experience with entrepreneurship enabled her to grow quickly in the medical industry while also making her better understand the difficulty for a small start-up to achieve big changes.

“Only companies with a sound business foundation of infrastructure, updated information system and extensive logistics network have the ability to make changes to the industry. JD is one of the companies that I believed to have strong technical and platform capabilities,” said Wang.

In 2018, after three rounds of discussions with Xin, she decided to join JD because of its platform advantages, technology strength and logistics capabilities.

Intelligent Healthcare

“The country always want more people to have access to better quality health care services while spending less money. But the reality is that only a small proportion of people can afford to enjoy better quality services because it currently requires spending more money,” said Wang.

“The only way to solve this challenge is to carry out technological innovation, through which we can expand our services to lower-tier cities, thus improving the local medical professionalism, and lowering the misdiagnosis rate.”

Wang herself has encountered such an example of misdiagnosis in a lower-tier city. A few years ago Wang’s mother was diagnosed with a serious disease, Lupus Erythematosus, in her hometown hospital. Her family members panicked, so they chose to come to one of Beijing’s hospitals, Peking Union Medical College Hospital, for a second opinion. Unexpectedly, the Beijing hospital declared a different diagnosis: her mother did not have the disease. Her mother remains healthy today.

“The misdiagnosis rate in lower-tier cities is rather high, and many people have missed the best time for treatment. or had over treatments or even malpractices because of misdiagnosis,” said Wang.

Dongyuan Wang at JD Headquarters in Beijing

Dongyuan Wang at JD Headquarters in Beijing

On the subject of foreign diagnosis systems, such as IBM’s Watson, Wang believes that the reason for its ability to output correct and standard diagnosis answers is because the machine has been subjected to a rigorous and deep learning process. Wang believes that such products would be of great help in improving the diagnosis in China’s.

“Assisted diagnosis and treatment is one of the developmental directions in the future, especially for people in lower-tier cites. The first thing I came to JD to do is to make a system that can assist in prescribing rational drug use. Through the system, I hope people can find the right drugs, which are safe, effective and affordable,” said Wang.

She has also led her team to create an AI-based prescription review and analysis system, titled the PharmCOO (“Pharma chief operating officer”), which optimizes the clinical prescription process and improves patient safety. Using JD’s advanced natural language processing and deep learning technology, PharmCOO can provide doctors timely reminders on any issues, and consultation on the use of various drugs. Rather than a static database, the knowledge graph-based system is unique in that it also constantly learns from the experience of medical professionals, enabling it to improve accuracy, and taking the burden off of pharmacists to memorize troves of medical data so that they can focus on their work. It is already being applied in hospitals in Beijing, Hebi of Henan province and other cities.

In addition to developing this technological system, Wang also led her team to assist Beihai of Guangxi Zhuang Autonomous Region and several other cities in Jiangsu province, in the construction of “Health City” projects. JD gives full play to its supply chain and technical capabilities, and cooperates with the government, hospitals and communities to carry out medical services and health management to build a digital intelligence health ecosystem. At the same time, JD empowers lower-tier cities with the digitalization of medical systems, thus further improving the efficiency of medical supply chain in lower-tier cities.

“Every project I’ve done may seem to have a halo from the outside, but in fact, these projects have been an ordeal for me. JD Health’s first annual financial results were released in March, and mentioned JD Health’s efforts in helping Beihai to build a ‘Health City’. I was almost in tears when I saw the project I led mentioned in the financial results. It was my contribution to not only JD Health, but also to lower-tier cities such as Beihai and Hebi. No one else knows how much we struggled to make it happen; only  my team and I know all the hardships we endured in order to facilitate cooperation like this,” said Wang.

In March 2020, when the pandemic was still in serious condition and basically everyone was still at home in quarantine, Wang traveled to Beihai in order to promote the implementation of the Health City Project.

Accompanied by a young colleague on her team, she faced more than 20 government officials, including mayor, vice mayors, officials from health care commission and health insurance bureau, to present them the proposal and persuade them to join the project. Faced with the new cooperation model, the mayor questioned her for nearly 40 minutes, repeatedly questioning the function and effectiveness of the business model. Eventually, with Wang’s steady and professional response, Beihai city agreed to join JD Health’s Health City project.

Following her Fate

Wang mentioned that she will continue to explore ways of using technology to improve conditions in the healthcare industry over the next 5-10 years.

“We can undoubtedly improve China’s grassroots healthcare capability and reduce the misdiagnosis rate through technological innovation,” said Wang.

“Healthcare is my fate, and I would give anything for it.”

 

(zhanghui36@jd.com)

 

JD Data: Three Key Findings from JD’s Reading Report

by Ella Kidron

Ahead of World Book Day (Apr. 23), JD Books, the books division under JD.com, and the JD Big Data Research Institute released a report on how consumer reading habits have changed in China on Apr. 21. Here are a few highlights from the report:

1. The types of books people are reading has changed under COVID-19

The pursuit for reading books which provide a sense of comfort is a clear trend of 2020. In particular, the types of books with the most growth (as compared with 2019) are answer-seeking, childhood and hometown-reminiscing, a rejection of maturity, realism, and self-healing. Among female consumers, interest in literature, foreign language and parenting books declined, while economics, finance, law and psychology rose.

2. Different types of books are bought at different times of the day

JD Data shows that motivational books are typically bought between 7-9 a.m., love and marriage between 2-4 p.m., foreign language books between 5-7 p.m. and fashion and beauty in the wee hours between midnight and 2 a.m.

Types of books bought at different times of day

Types of books bought at different times of day (Source: JD Big Data Research Institute)

3. Higher incomes are associated with a broader reading repertoire

The data finds that the high income consumer group has the broadest tastes in terms of books. Topics of interest include computing and internet, finance and investment, law, art, painting, biographies, and novels are among the categories not found in the consumption patterns of other income groups. More generally, higher income groups’ reading habits were more associated with spiritual exploration, literature and history and quality of life, with top categories including cooking, painting, calligraphy and more. Mid-to-low income consumer groups were associated with buying more practical books focused on production, work and study. One of the main drivers for the explosive interest in photography and film is the dramatic rise in popularity of livestreaming in lower-tier markets.

Fei Lu, Senior Analyst at the JD Big Data Research Institute, said: “Much has changed in 2020. For those who believe that reading can change your destiny, note that picking a book is merely picking a direction. Real growth comes from the test of life.” The data indicates that COVID-19 has not only increased people’s interest in reading, but also inspired them to rethink how they approach their lives.

Fei Lu shares highlights from book report at a media event at a JD office in Beijing

Fei Lu shares highlights from book report at a media event at a JD office in Beijing

 

(ella@jd.com)

JD Health and GSK to Expand Cooperation

by Hui Zhang

Global pharmaceutical leader GlaxoSmithKline (GSK) announced plans to expand cooperation on consumer healthcare with JD Health on April 19, in the areas of technology, product and services.

“The health industry is not only a fast-growing industry, but also related to the dignity and quality of life of every person,” said Lijun Xin, CEO of JD Health. “Through this cooperation, JD Health will join hands with GSK Consumer Healthcare to continue promoting public healthcare management and providing one-stop solutions for consumers.”

Through the cooperation, GSK will create a variety of customized products for JD Health, which will also be the first platform in China to sell them, thus further enriching healthcare product categories on JD Health. In return, JD Health will leverage its own platform resources and supply chain capabilities to shorten the transaction process between products and consumers, and assist GSK’s consumer healthcare products’ sales online.

Susan Gu, greater China general manager at GSK Consumer Healthcare, said GSK has witnessed the tremendous impact of digitalization on the healthcare ecosystem in recent years. “The scenarios and channels through which consumers access healthcare services are undergoing a profound digital transformation,” Gu said. “The pandemic has not only accelerated the process, but has also raised national health awareness like never before, making consumers more focused on long-term health management.”

As a research-driven pharmaceutical and healthcare company, GSK Consumer Healthcare is fully engaged in digital healthcare development, Gu added.

“This in-depth collaboration with JD Health is an important step in our digital transformation process. We hope that by joining forces with JD Health, we can work together to build a digital, sustainable health ecosystem that will help achieve our vision of providing innovative health solutions to every Chinese consumer to help them improve their quality of life.”

It’s not the first time for JD Health and GSK to deepen bilateral cooperation. The two companies signed a memorandum last year to deepen collaboration on vaccinations. The two sides will explore new vaccination supply and service solutions based on the strength of the Internet and other technologies to provide premium and safe vaccinations, and make them accessible to a wider range of people in China.

GSK is a science-led global healthcare company. The company researches, develops and manufactures a wide range of medicines, vaccines and consumer healthcare products.

(zhanghui36@jd.com)

Beijing TV Broadcasts JD’s One-Hour Delivery Services

by Hui Zhang

A reporter from Beijing Radio and Television(BRTV) filmed JD’s one-hour delivery services by following a real order placed by a consumer on Apr. 15. It only took 28 minutes for the consumer to receive the product after placing the order. The footage was broadcasted on the program “Living at the Moment” of BRTV’s Life Channel at 17:23pm on the same day.

The customer surnamed Zhu placed an order within JD’s App for items spanning various categories, such as fruit, vegetables, ice cream, fresh produce and one fragile item, a glass, posing a real test for JD’s logistics capabilities.

The customer surnamed Zhu placed an order within JD’s App for items spanning various categorie

Screenshot of JD App

From the offline store side, a camera recorded the whole process of order fulfillment. Workers at the offline store had been dispatched to different areas of the store to pick up products, and then all the products gathered into an office so as to review if each order has been fulfilled.

“The whole process only takes about 10 minutes, from picking out to packaging the items,” said Yatao Li, general manager of Beijing Huaguan Commercial Technology Development Company. The Huaguan supermarket where Zhu’s order was fulfilled is only one of JD’s partners in its omnichannel fulfillment supply chain innovation program.

 

The whole process only takes about 10 minutes, from picking out to packaging the items

Screenshot of Items Packaged

The courier knocked on Zhu’s home door only 27 minutes 53 seconds after she placed this order. All the products including the fresh produce and the glass arrived in good condition.

As early as April 2020, JD already joined hands with JDDJ (JD Daojia, a local on-demand retail platform under Dada Group) and other offline channels such as Walmart, Yonghui Superstores, Better Life and BHG, covering over 10,000 offline stores with nearly 3 million products across 100 cities to improve logistics efficiency and get products into customers’ hands even faster.

To further enhance consumers’ shopping experience, JD ramped up its cooperation with Dada Group to provide JD’s customers with one-hour delivery service of daily necessities powered by Dada. Through the cooperation, JD customers can now directly buy over three million products from participating stores on JD.com and receive the products within an average time of one hour. Some products can even be delivered within 15 minutes.

More than 20,000 chain supermarkets across China have now participated in the program, making a myriad of products available for consumers to order online, ranging from fresh groceries, home appliances, consumer electronics, to healthcare and personal care products.

 

(zhanghui36@jd.com)

Jingxi Opens First Baby and Maternal Store

by Ling Cao

Jingxi, a business group under JD.com focusing on lower tier markets, announced on Apr. 20 to open its first store for baby and maternal products.

Located in Chengdu, the capital of Sichuan province, the store covers product categories include infant powder, nutritional supplements, diapers, washing and care products, apparel and toys. In addition, using a WeChat mini program, customers can purchase the products online and have them rapidly delivered home in as fast as 30 minutes.

Hongjie Shao, general manager of the operations center within Jingxi, said: ”This is a new program for Jingxi, aiming to provide cost-effective products and high-quality service and experience for pregnant mothers and children from newborn babies up to 12 year olds.”

In addition to traditional products, the store also has a designated area to support the purchase of cross-border products, pet products, etc., making a trip to the store become more of an experience.

Integrating omni-channel supply chain, logistics, marketing and technology capabilities, Jingxi can empower the store with standardized decoration, pricing and inventory management, and can provide training courses, helping merchants make their businesses more sustainable.

Shao added, “In the future, we will bring JD Service+ to the store, and connect membership system with other Jingxi stores, providing more diverse services for customers.”

 

(ling.cao@jd.com)

In-depth Report: IEEE Fellows Series – Dr. Xiaodong He: Using AI to Break down Communication Barriers

by Ella Kidron

“Before, on the research side, we used to think, ‘With technology, anything can be taken care of,’” explained Dr. Xiaodong He (pronounced “heh”, not “he”) in a conversation on Apr. 2. Dr. He is a vice president at JD.com and the deputy managing director of JD AI Research. An IEEE Fellow, he has decades of experience in most game-changing areas of the field of AI. In joining JD, he made a transition from doing pure, cutting edge research, to doing extensive commercial applications, in addition to top of the line research.

Dr. He specializes in using AI, specifically conversational AI – a collection of technologies including natural language processing (NLP), natural language understanding, speech recognition, and machine learning techniques necessary for continued improvements – to improve services. The technologies themselves enable AI such as chatbots to interact with people in a humanlike way. At JD, this is taken to the next level. The team, which used to be 10 people and has since expanded to 300, has built a highly complex and sophisticated AI chatbot system which can not only efficiently handle customer queries but also detect emotion and respond to consumers in an emotionally appropriate way.

In a word, Dr. He and the team at JD are using AI to build more trust into the communication process, first from the perspective of human-to-machine, which later translates into human-to-human interactions. “If I had to summarize what we are doing in one sentence, we are using AI to help our client and their customer to feel closer,” he explained.

Dr. Xiaodong He

Dr. Xiaodong He

Research to commercial application

On-the-ground, firsthand observation has been instrumental in getting the product right. “We went to the frontlines to study from the top customer service professionals, and realized that before even solving a technical problem, the first thing they do is to understand where the customer is emotionally and get on the same page. Only after they have established emotional resonance do they attempt to address the technical elements of the customers’ query.” This is how the most effective, and mutually beneficial conversation occurs, and creating scenarios which are as layered and complex as everyday real customer queries are not easy to do in a lab. “There are many scenarios which cannot be simulated virtually. You need real world applications in order to determine the right [technical] solution to the problem.”

The immediate real-world application scenario of having over 471 million (as of Dec 2020) active customers from all regions across the country with diverse backgrounds, experiences has done wonders for JD’s conversational AI technology and helped it be competitive in world-leading AI competitions. “Through real-world application, we’ve been able to address some questions that the entire field only looking at and technology didn’t consider before.”

Last year, JD’s AI Research team was ranked No. 1 at Stanford University’s QUAC (Question Answering in Context) competition, taking down teams from a handful of leading companies around the world. JD has also submitted academic papers to top AI conferences hosted by the likes of the Association for the Advancement of Artificial Intelligence (AAAI) and the Association of Computational Linguistics (ACL). In these papers are discoveries which have been overlooked by entire industries, such as, how to make a deep learning model manageable and explainable.

Dr. He and team at JD.com

Dr. He and team at JD.com

The technology has also provided social value, and even been lifesaving in some cases. The Fine Granite Emotion Detection system that JD has developed ensures hypersensitivity to user queries. For example, last year a customer asked how many sleeping pills would be required to take one’s life. After noting the abnormality of the query, the system redirected it to JD’s “Life Channel” suicide hotline team. Comprised of staff with years of front-line service, the team is trained in psychological counseling to soothe customers that express suicidal thoughts during communication with them, and to take appropriate action to preserve their safety. Early intervention and quick response has saved tens of lives.

Commercial application to reproducibility

Dr. He equates the advanced customer service system JD has built with a Ferrari. The system’s sophisticated emotion detection system is able to not only understand but also respond with a tone that matches or acknowledges the tone of the user. It is also fully-customized to suit the unique needs of JD’s retail business down to the minutest, most granular details.

The great technical challenge comes in transforming this into a product which is widely commercialized, in essence turning it into the equivalent of a Toyota Camry – a very effective and reliable tool that is also cost effective and widely accessible. This is what Dr. He’s team has done.

There are three stages of development according to Dr. He: 1) technological breakthrough, 2) creating a product that businesses can use and 3) creating value for the end user. The first stage, technological breakthrough involves breaking world records at the very frontiers of technology and increasing a single percentage point.

JD’s voice shopping, customer service chatbot and emotion detection capabilities have been broken up into modular APIs which business can directly use in different scenarios. “We fully understand that the end user is unlikely to do any additional development on top of the product we provide. It needs to be immediately usable. The technology is at the heart of guaranteeing efficiency, but we need to do more work on top of that,” explained Dr. He.

“[The end user] doesn’t need know what voice detection is, or what our analysis model is in order to use the app effectively.” The final step is to turn this ability into a product where no knowledge of technology or what’s happening behind the scenes is necessary. “You need to create a closed loop where users who don’t understand technology and don’t even understand business can use it effectively – ‘I speak and you understand’ – that’s how you create real value.” This value translates into the three elements at the heart of retail and service – lowering costs, increasing efficiency and enhancing experience.

The technology requirement to achieve this is much higher. It’s a shift from going to the theoretical ends of the Earth to capture a 1% efficiency improvement to ensuring self-adaptation, robustness and diverse scenario application. Dr. He likens it to Elon Musk’s mission to commercialize and make accessible traveling by rocket to Mars. Researchers have two main motivations in technology development – technology for technology’s sake, or satisfying our internal curiosity about how far the envelope can be pushed, and creating value for society. “How you create value for society is simple – can society benefit from this product or not?” This involves reducing costs, scaling and ensuring reproducibility. When done right, it can transform industries ranging from municipal services to finance and more.

JD’s AI team recently announced the application and integration of its intelligent chatbot technology into the resident service hotline (12345 in China) for the city of Datong, a prefecture level city in Shanxi province.

Prior to the collaboration with JD, the hotline mainly relied on traditional customer service, resulting in a large number of missed calls and vague answers as service staff would rely on standard replies, impacting efficiency. Since applying JD’s technology, the number of daily calls have increased 31.7% with a pickup rate of 100%. The queries from Datong residents are first handled by the robot customer service and seamlessly transferred to human customer service as necessary. The service is also customized to recognize the local dialect, thanks to semantic analysis technology.

The application of JD’s technology has enabled a more service-oriented approach to local government service of residents while reducing costs. It’s also making it easier for all populations, such as seniors, to get their problems solved. Some seniors cannot use a computer or a phone or even type in Pinyin (the phonetic way to type Chinese) in order to write characters. “We want to provide high quality and attentive service to these people in a very natural way.”

According to Dr. He, it’s not about overcoming the so-called digital gap as much as breaking down communication barriers. With JD’s service, an senior resident in Datong who dials 12345 to report a broken traffic light at the end of her street can provide an address, arrange a person to fix it, and also receive a call a few days later to check in on whether it has been fixed, all within the span of a phone call.

An unlimited market

The application scenarios for such technology are seemingly endless. In the early 1940s, IBM’s president, Thomas J. Watson said there was a world market for about five computers. At the time, computers were exorbitantly expensive and required a highly technical background in order to operate. Now, with smart phones, over 3.2 billion people carry the equivalent of a powerful computer in their pockets. High quality customer service can be looked at the same way.

“In the future, not only will products have agents (to market themselves to consumers) but people will too.” They won’t just have one agent though. Dr. He envisions a world of multiple smart agents, similar to the way people use multiple apps on their phones. “We will have agents to manage our health, finances, education, and more.” He joked: “We might even have an agent for communication with our bosses, and an agent to manage our agents.”

Dr. Xiaodong He at JD's office in Beijing

Dr. Xiaodong He at JD’s office in Beijing

Breaking down barriers to high quality service

It may sound space age, but such a future could be closer to becoming reality than one might think. There have been huge breakthroughs from a tech perspective in the past five years, according to Dr. He. In 2016, AlphaGo’s defeat of 18-time world champion of the game Go, Lee Sedol of South Korea, demonstrated the sheer might of technology. Just last year, GPT-3 (Generative Pre-trained Transformer 3), an AI developed by OpenAI that is better at creating content that has a language structure – human or machine language – than anything that has become before it, took the world by storm. The next five years will be about product and ability breakthroughs. “We are moving from ‘Art and Science’ to engineering,” explained Dr. He. Every time there’s a new breakthrough, a US$ 100 billion company is created. “We hope we’re the next one,” he said with a chuckle.

Breaking down the barrier to entry for high quality service is just the beginning. “It used to be that only upscale places could afford to provide such service. Once the technology progresses in reducing costs, we will see the demand for humanized customer service mushroom.”

It is an immense technical challenge poised to provide massive value. “At this scale, we are doing something that nobody has ever done before. It’s incredibly exciting.”

 

(ella@jd.com)