ByteDance's Doubao AI Assistant Boosts ZTE Shares

ByteDance’s Doubao AI assistant is making waves by partnering with ZTE to create a phone with deeply integrated AI, moving beyond simple voice commands. The partnership has boosted ZTE’s stock and sparked debate about data privacy and the future of mobile interfaces.

The “Doubao Mobile Assistant Technical Preview Version” aims to give AI the power to automate tasks and manage the phone on the user’s behalf. It’s designed to be a true “Agent,” handling complex operations with minimal human intervention, unlike earlier voice assistants.

A demo showcased the AI planning a trip to Paris, including restaurant recommendations, museum ticket bookings, and itinerary organization. The AI navigated multiple apps, extracted data, and compiled information, requiring only user confirmation of key details and payment. Early adopters have reported success with tasks like photo retouching, food delivery, and price comparisons. The assistant is still in testing, with improvements expected through software updates until early 2026.

However, Doubao’s deep integration raises data privacy concerns. It requires access to vast user data and third-party apps, creating potential vulnerabilities. Shortly after launch, some users experienced unexpected WeChat logouts, with WeChat citing an “abnormal login environment.” WeChat prohibits using unauthorized third-party software for automated operations, raising questions about Doubao’s compliance.

Doubao responded by unblocking affected accounts and stating it does not engage in hacking. Li Liang, the vice president of Douyin Group, said user authorization is required for all operations and that privacy is a top priority. A white paper details information security measures, promising limited data collection and robust protection. However, specific authorizations from third-party apps remain unclear.

The incident highlights the challenges of data security with AI assistants. Clear guidelines and responsibilities are lacking. An industry insider noted that user authorization might not be sufficient for third-party app manufacturers, as it could expose trade secrets.

The industry is addressing these concerns. The Cloud Computing Standards and Open-Source Promotion Committee and the China Academy of Information and Communications Technology released Security Guidelines for Dual Authorization of End-Cloud Collaborative Intelligent Agent Interaction, emphasizing both application and user authorization for accessing third-party applications.

The Doubao-ZTE partnership is strategic for both companies. For ByteDance, it’s a chance to enter the hardware market, having previously acquired assets like Pico and Smartisan Mobile without major hardware success. With Doubao boasting over 150 million monthly active users, AI-native applications are a promising avenue for expansion.

Doubao maintains it has “no plan to develop self-developed mobile phones” and is in talks with multiple manufacturers. However, its self-developed Ola Friend headphones suggest continued interest in AI hardware, albeit cautiously.

Internet giants like Facebook, Alibaba, and Tencent have attempted to enter the mobile phone market through customized OS and partnerships, but none have achieved mainstream success. The allure of “combining software and hardware,” like Apple, remains strong.

With declining mobile phone sales, AI is seen as potential growth catalyst. For second-tier brands like ZTE, collaborating with leading models like Doubao is a cost-effective way to innovate. ZTE’s A-shares hitting the daily limit after the partnership announcement shows market enthusiasm.

Whether the “Doubao model” becomes the industry standard is uncertain. Major players like Apple and Huawei may be hesitant to cede control of their operating systems to third-party AI models. Android manufacturers in China are more open to collaboration, but their willingness to fully integrate Doubao will depend on its capabilities and alignment with their AI strategies.

The Doubao Mobile Assistant represents a vision for the future of mobile devices, where AI seamlessly integrates into the user experience. While privacy concerns and industry standards need to be addressed, the potential benefits of an intelligent and automated mobile assistant are undeniable, and the market is watching to see if Doubao can deliver.