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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)

When E-Commerce Reaches Plateau: Pioneer Work of Two JDers on “The Roof of the World”

Vivian Yang and Yuchuan Wang

Xianfeng Wang and Danhua Nie are two JD.com employees in Tibet. When the company was looking for talent to break the ground for e-commerce development in the “roof of the world”, Wang and Nie immediately jumped on this opportunity with the mission to march onto the market and sow the seed of e-commerce to support the growth of partners and farmers there.

With an area of over 1.2 million square kilometers, Tibet is more than two times the size of France but its population, 3.5 million, is only about 1/20 of France. With longer days and strong UV rays at 4 km altitude on average, Tibet is the home to a lot of unique produce, such as Nyingchi apple, high-land barley, ganoderma (a type of fungi) and Yak meat.

“Challenging transportation infrastructure have made it hard to sell local agricultural products and deliver goods in,” said Wang. “Deliveries from other provinces to Tibet normally take at least 10 days.”

What’s more challenging is the physical impact of the harsh environmental conditions on Wang and Nie. They are originally from Hebei and Jiangxi provinces respectively in China’s plain areas and it is their first time to live in such a high altitude environment. “I felt a huge pressure in my chest and I wasn’t able to breathe freely. My head ached and felt like there was a swarm of bees stinging it,” said Nie. It wasn’t until the third day that the symptoms got weaker.

In Tibet, JD is leveraging its expertise in e-commerce and logistics to enable local people. Wang and Nie are the pioneers. They will focus on different work areas in Tibet based on their respective expertise.

Wang has rich experience in e-commerce operations and cross-team coordination at JD. His first role in the new post is to act as the chief organizer of the Nyingchi Peach Blossom Festival which lasts from Mar. 15 to Apr. 20 this year. To do this, he needed not only to manage all the exhibition and promotional activities offline in the local festival venues but also to pull together JD’s resources to do simultaneous online marketing activities.

Danhua Nie (third from the left) visited a local farm

Danhua Nie (third from the left) visited a local farm

Wang said that to prepare for the festival, he needed to get up at 5 a.m. to arrange exhibition logistics. He spent the daylight hours dashing around their booths and livestreaming spots, then continued to do product selection through midnight.

“Building up the fundamental infrastructure and operational capabilities for JD’s online pavilions for Tibetan specialties is the main goal of my current work here. And I’m eager to explore new models to help local produce to access the outside market,” said Wang.

Xianfeng Wang (left) talks with a local farmer

Xianfeng Wang (left) talks with a local farmer

Nie’s mission is to first emphasize helping local farms to set up all relevant standards so as to supply reliable products on the e-commerce platform. As a veteran who has been working in the agricultural field for the past ten years, his know-how about products and their supply chain management helped him negotiate with local partners. It also requires tremendous passion and patience for him to explain the basics to different people he has been visiting non-stop at the local production bases.

“You need to have a healthy body, a strong mind and capable working skills to take on this job,” said Nie, knowing in heart that there are so many things awaiting him to do on the ground, ranging from products selection, system backend construction, logistics, marketing and operations. “JD’s good reputation and in supply chain and logistics have laid a solid foundation for us to communicate and work with the local people,” Nie added.

Guided by the goal of finding differentiated local products, Wang and Nie have been climbing up the mountains for wild saussurea involucrata (an herb also known as “snow lotus” that is used in Traditional Chinese Medicine), tasting special yogurt and peppers for the first time in their lives in small farms, or dressing in local costumes to feel the differences between textiles.

Xianfeng Wang (first from the right) is tasting fruits with his partners in Tibet

Xianfeng Wang (first from the right) is tasting fruits with his partners in Tibet

During this process, both of them also noticed that some commodity prices on the local market are much higher than those in big cities. Take potatoes as an example, the wholesale price can be as high as RMB 6 yuan/kg (compared with around RMB 2 yuan/kg in Beijing) as Nie pointed out. Transportation difficulty to remote areas, damages in the transportation process, and multi-layer transactions in the traditional sales model all contribute to the price markup.

“We hope that through our hard work and collaboration with local partners, we can help local people enjoy the benefits of e-commerce with better quality products, equal price and same or next-day delivery service,” Nie envisioned.

“I want to train some ‘apprentices’ here in the coming two years, letting more local young people carry forward this meaningful cause of using e-commerce to benefit the local economy,” Wang added.

Dreams are becoming realities. On Jan. 1, 2021, an integrated warehousing and distribution center was opened in Lhasa, the autonomous region’s capital, by JD Logistics. It will serve as an important logistics infrastructure to drive up supply chain efficiency for the local economy, with priority on the promotion of local agricultural products. Nyingchi apples can now reach the greater nationwide market by the same and next-day delivery provided by JD.

And for Nie, he has another important goal in serving in Tibet: “I also want to use my actions to tell my 7-year-old son that a man should create value for society.”

 

(vivian.yang@jd.com, yuchuan.wang@jd.com )

JD Global Sales Launches Consolidated Shipping Service in 16 Markets

by Yuchuan Wang

JD Global Sales, JD.com’s outbound cross-border business, announced today it has launched consolidated shipping service in 16 markets including the U.S, Canada, Australia, Japan, Singapore, Hong Kong and more, enabling customers to enjoy a more convenient cross-border shopping experience.

The consolidated shipping service will enable products purchased from both JD’s first-party business and third-party merchants to be shipped in the same parcel for the first time. Consumers’ orders will be transported by JD to the consolidated shipping warehouse in Chinese mainland first, and then combine into one package for cross-border fulfillment.

“Compared with the normal direct shipping model, the consolidated shipping service provides an even easier and economical solution for our global customers,” said Chris Cui, head of JD Global Sales.

To meet increasing demand from global consumers, JD Global Sales also created the “cross-border experiencer” project recently to invite customers to experience JD’s services including registration, searching, order placing, logistics, aftersales and more; giving participants the opportunity to propose suggestions and preferences to help JD Global Sales optimize the customer experience.

JD Global Sales has seen rapid growth of its business in the past year, with sales volume of orders placed by overseas Chinese on the platform having increased 251% YOY in 2020.

 

(yuchuan.wang@jd.com)

JD Brings Fresh Milk to Customers via Cold Chain

by Ling Cao

JD will bring tailor-made fresh milk to customers via its in-house cold chain logistics spanning the whole fulfillment process, beginning on Apr. 22. The milk will be sold via JD’s omni-channel platforms, including its e-commerce platform and offline supermarket chain SEVEN FRESH, and others.

Created by JD Fresh and New Hope Dairy, the milk is a pasteurized version with a seven-day shelf life. Customers can be assured of freshness thanks to JD’s ability to send the milk to customers’ doorsteps the same day that it is produced.

“We saw more and more customers care about a healthy lifestyle,” said Hui Yang, from JD Fresh’s fresh and frozen food department.  “They tend to buy milk with higher protein. Through the partnership with New Hope Dairy, we can not only meet the requirement from the product side, but also narrow down the middle suppliers from production to sales, as well as source the milk from the 100% dairy farm rather than captive breeding, ensuring the highest quality and making it cost-effective.”

The low-temperature fresh milk has market potential, though it has faced challenges such as short shelf life and the far distance from the dairy farm to sales destinations, with problems in transportation making it hard to reach to lower-tier markets.

Under the partnership, both companies can provide customers with milk from 11 dairy farms across China, with 150,000 cows in total, as well as two pasteurization production lines in Hebei and Zhejiang. More importantly, the network can be connected with JD’s 87 temperature-controlled cold chain warehouses covering 31 provinces, municipalities and autonomous regions, enabling fast and safe logistics and last mile delivery service.

Yang added, “Going forward, we will develop more new products, such as a low-fat version, with an aim to consistently match customers’ demands.”

 

(ling.cao@jd.com)

JD Customers in Henan Enjoy Instant Delivery of Electronic Products

by Rachel Liu

JD Daojia (JDDJ) expanded its on-demand delivery service to cover 500 offline computer and digital products stores in Henan province on Apr. 16, under the support of JD and a local service provider. Customers in Henan will be able to enjoy on-demand delivery service of electronic products, including customers from lower-tier markets.

The stores will also obtain support from JD on digital transformation, traffic and more resources. As digital transformation and omni-channel have become the trend for offline stores, launching the stores on JDDJ will enable them to receive more orders from the platform and reach more customers. On-demand retail platforms like JDDJ will offer new shopping scenarios for customers beyond offline stores or traditional online platforms.

“Through working with the stores, JDDJ can provide on-demand delivery service to more areas in Henan and improve customers’ shopping experience,” said Yan Shang, general manager of JDDJ Henan branch. “More stores from Henan will join JDDJ, and we hope to achieve full coverage of on-demand delivery of electronics and digital products in Henan.”

The trend of on-demand delivery service has expanded from consumer goods products to electronics, digital products and more. When Lenovo Y7000 P and HP OMEN 6 debuted on JD, JD Computer and Digital Products stores worked with JDDJ to deliver the new products to customers on demand for the first time.

 

(liuchang61@jd.com)

JD.com and Kuaishou Promote Beauty Livestreaming Ecommerce

by Hui Zhang

JD Beauty, the beauty division of JD.com, along with the beauty business of Kuaishou, China’s leading video sharing and livestreaming platform, announced on Apr.15 to release the Gemini Program, through which both sides will explore in-depth cooperation in building brands, marketing promotion, industrial belt branding construction and KOLs cultivation.

“Livestreaming is an innovative way to sell many products, especially beauty products. KOLs can have a try of beauty products themselves and show consumers the real effects through livestreaming,” said Terry Wang, general manager of JD Beauty.

“JD’s cooperation with Kuaishou will bring a convenient and seamless shopping experience to Chinese consumers while offering them authentic beauty products in an efficient manner,” Wang added.

JD Beauty will rely on its supply chain strength to provide authentic and high-quality beauty products for Kuaishou and take advantage of its nationwide logistics network to provide efficient logistics services to consumers. In return, Kuaishou will train a group of KOLs to continuously offer livestreaming services for JD Beauty. In addition, Kuaishou will provide preferential traffic support to JD Beauty. For the development of industry belt brands, both sides will provide one-on-one livestreaming guidance, traffic and resources to local beauty brands, aiming to assist in local economic development. Furthermore, both JD and Kuaishou will provide professional training to KOLs, and those with high sales performance will have the privilege to choose products as a reward.

JD Retail announced a strategic partnership with Kuaishou in May 2020 to develop a short video e-commerce livestreaming ecosystem. Through the cooperation, Kuaishou users are able to purchase JD’s first party products without leaving the Kuaishou app, and enjoy fast delivery and after-sales service provided by JD.

 

(zhanghui36@jd.com)

JD iCity’s Online Expo Solution Recognized as A Model Case by Yunnan

by Vivian Yang

The online expo project that JD iCity, the intelligent city unit of JD Technology, created for the China-South Asia Online Expo 2020 was awarded by the Yunnan government as a model case of the city’s digital intelligence implementation on Apr. 20. This recognition reinforced the company’s strong capabilities in providing technological solutions for large-scale international exhibition activities online.

Under the theme of “The Everlasting China-South Asia Online Expo 2020,” the digital event was held from Dec. 12 to 18 in 2020, and served as an important platform to boost trade during COVID-19 in South Asia, Southeast Asia and even on the global scale. More than 8,000 exhibitors and 6,000 buyers from over 100 countries and regions participated in the 7-day expo, which saw imports and export deals reach an overall amount of RMB 81 billion yuan, making it the most participated event with the widest coverage in the history of the expo, spanning all provinces, municipalities and autonomous regions in China for the first time.

As the official technology provider of the expo, JD iCity’s cloud team leveraged advanced technologies in cloud computing, AI, big data, IoT, 5G and more to build an efficient and immersive experience for all – its meeting system can accommodate more than 1,000 users to conduct real-time online communications. Other smart functions such as real-time translation, 24/7 intelligent customer service, VR display and AI-powered livestreaming content review all helped to maximize the effectiveness of both B2B and B2C interaction scenarios.

“JD’s cloud-based digitally intelligent exhibition solution has been tested and proven to be successful in a number of online exhibition events, such as China International Fair for Trade in Services and more,” said Donghai Yang, head of JD iCity’s Yunnan team. “We are confident that JD’s mature and unique technological capacity can empower more national and international level exhibition events in the future.”

 

(vivian.yang@jd.com)

 

 

A Swiss Watch Goes for RMB 388,000 Yuan in Charity Auction on JD

by Ella Kidron

JD.com hosted a charity auction in collaboration with Swiss watch brand H. Moser & Cie. and The One Foundation, the auction took place on Apr. 14 at midnight and concluded on Apr. 18 at 19:00. The final price of the one of a kind Swiss Alp Watch Infinite Reboot was RMB 388,000 yuan after 16 rounds of bidding, up from its starting price of RMB 238,000 yuan. All proceeds from the auction go towards supporting children’s welfare through H. Moser & Cie.’s partnership with The One Foundation.

RMB 388,000 yuan final price of the H. Moser Swiss Alp Watch Infinite Reboot at conclusion of auction

RMB 388,000 yuan final price of the H. Moser Swiss Alp Watch Infinite Reboot at conclusion of auction

Of the watch itself, a spokesperson commented: “The item is devoid of logo, indices, and hands. Its dial features only a mechanical disc reminiscent of the symbol one sees when a computer program is loading, turning constantly to reflect the ceaseless march of time…It is a symbol of the infinite, of the relativity of time and of the headlong rush in which society is caught, ever more connected, ever more virtual. Here comes a fundamental question: in the face of extreme digitization and excess, could it now be time for a complete reboot?”

Online auctions have become increasingly popular, and JD Auction is a platform of choice thanks to its reliability and commitment to authenticity. The platform has auctioned products in over 40 primary categories and covering over 200 sub-categories. Everything from mansions to jewelry to famous calligraphy works and high quality alcohol can be found on JD Auction, meeting consumer needs for rare collectibles as well as everyday use products.

JD Auction has held several online charity auctions. Last November, in cooperation with JD Foundation, the platform hosted a charity auction to promote China’s intangible cultural heritage. All funds received from the auction of craft masters’ works were used to help women in impoverished areas and ethnic minority groups to encourage their pursuits of art and cultural creations.

 

(ella@jd.com)