AIGC Innovation Society Salon | Guohai Securities Yao Lei: AI is reshaping the content production mode of the media industry

Recently, NetEase Technology's "AIGC Innovation Society" salon event was officially held, with the theme of "AIGC Reshaping Content Productivity", bringing together well-known entrepreneurs, investors, and securities analysts. Among them, Yao Lei, Chief Analyst of the Media Industry at Guohai Securities, brought a live sharing with the theme of "AIGC Reshaping the Media Industry Ecology", and the on-site response was enthusiastic

Recently, NetEase Technology's "AIGC Innovation Society" salon event was officially held, with the theme of "AIGC Reshaping Content Productivity", bringing together well-known entrepreneurs, investors, and securities analysts. Among them, Yao Lei, Chief Analyst of the Media Industry at Guohai Securities, brought a live sharing with the theme of "AIGC Reshaping the Media Industry Ecology", and the on-site response was enthusiastic.

Algorithm changes affect traffic acquisition, AI expands content industry commercialization space

In Yao Lei's view, firstly, there has been a significant change in the training methods of AI. In the era of AI 1.0, many specialized AI systems were trained through annotated data, and their underlying tasks were limited. This is like setting a future for a person to become a teacher or painter, and setting it up from the beginning. However, there have been fundamental changes in the training methods of the AI2.0 era.

Now, we can first enable AI to conduct extensive data learning and cultivate its ability to possess the cognitive level of college students. Then, we can fine-tune it based on specific downstream tasks, just like cultivating a person by first growing them into a college student, and then fine-tuning them based on their future career goals. This change has made AI a foundation that connects various industries, completely different from before, "Yao Lei analyzed.

Secondly, Yao Lei pointed out that AIGC has had a profound impact on content creation. In the past, the development of content production tools from professional creators (PGC) to user generated content (UGC) has made creation more simplified. However, these methods are still limited, with only a few people being able to produce high-quality content. However, with the rise of AIGC, this pattern is changing. AIGC is regarded as the production method of news content, which can further lower the threshold of content production, expand the number and ecology of content producers.

Taking 2D and 3D content as examples, AIGC can achieve its production capacity through one-dimensional methods, making content creation faster. At the same time, the monetization methods and commercialization space have been improved, making the possibilities for the development of the content industry even broader.

Yao Lei emphasized that these changes not only triggered a rapid reaction in the market, but also had a significant impact on the development of the media industry. On the consumer end (C-end), the application of AI has brought a vibration effect, and the secondary market has responded quickly to the AI industry, while the investment in AI in the primary market has also continued to increase. The application of AI has shown great growth potential in the media industry.

Yao Lei also stated that the rapid development of AI in the media industry also benefits from technological iteration and innovation. From AI painting to the combination of Copilot and Office, the continuous innovation of these products and technologies provides strong support for the application of AI. Especially with the advancement of AIGC technology, content creation has become simpler and no longer limited to professional fields. Anyone can create exciting content through simple tools and methods.

The algorithms and applications of AI in the media industry have undergone tremendous changes. From the GPT-1 model in 2018 to the current GPT-4 model, the commercial application of AI has gradually been implemented. This change in algorithm has had an impact on traditional content production and traffic acquisition, and will generate approximately 200 billion yuan of commercial space in China. Yao Lei further shared her insights on algorithm and application levels.

She believes that in the future, with the increase of media forms such as videos, AI tools may replace traditional employment models and also bring new exploration and innovation opportunities. However, we are still in the exploratory stage and there is still some way to go before the large-scale outbreak of AI applications, and many companies are actively researching and exploring the application of AI technology in the media industry.

AI empowers the gaming industry chain to create realistic gaming experiences

Games, as a form of entertainment and interactive media, belong to a branch of the media industry. Yao Lei pointed out that games, as a form of content, have the highest requirements for practicality and complexity. Therefore, in the past, people believed that AI was difficult to change the gaming industry. However, with the development and innovation of technology, the application of AI in the gaming field is gradually showing enormous potential.

The game industry chain involves multiple links from research and development, operation, to distribution, and AI and its related technologies can play a role in these links. In the era of AI1.0, many companies have already used AI for intelligent advertising strategies and other marketing activities. In the era of AI2.0, materials generated through AI can improve efficiency and effectiveness. In addition, AI also plays an important role in game production and operation, such as generating game art materials and sound effects Dubbing, etc. to improve the efficiency of material generation and reduce costs Yao Lei pointed out the role of AI in the entire gaming industry chain.

Yao Lei mentioned that AI has also shown great potential in game operation strategies. Starting from AlphaGo, AI has made a series of breakthroughs in game training, enabling AI to play offline hosting and other roles in the game, greatly improving players' experience in competitive games. The efficiency of AI training is also constantly improving, allowing for faster training of mature AI, resulting in more realistic performance in games.

She also emphasized in the sharing that the application of AI also provides new possibilities for innovative gaming. For example, offline games such as script killing have been unable to be made online due to the high time cost. However, with the advancement of technology, AI can make online games such as script killing possible, greatly improving the playability and convenience of games. Although games, as a field with the highest requirements for content form, make it difficult for AI to change the gaming industry, with the continuous development and innovation of technology, the application potential of AI in games is gradually emerging. Through the application of AI in the gaming industry chain and the improvement of AI's gaming experience, the gaming industry will usher in new development opportunities.

Yao Lei believes that with the continuous evolution of AI technology, AI is reshaping the creative and content production methods of the media industry. With the further development of technology, AI will play an increasingly important role in fields such as news, film and television, and games. The media industry will usher in new development opportunities driven by AI, providing audiences and users with a richer and more personalized content experience.

Risk reminder: The evolution of technology is less than expected, the commercialization process is less than expected, the construction of enterprise technology management capacity is insufficient, the enterprise content review ability is insufficient, copyright protection risk, the difficulty of new technology regulation is increased, technology abuse risk, core talent loss risk, creative ethics risk, legal policy supervision risk, valuation center downward risk, etc.

Securities Research Report: "AIGC Deep Report: The Starting Point of a New Revolution in Content Productivity"

External release date: March 2, 2023

Issued by: Guohai Securities Co., Ltd

Analyst for this report: Yao Lei

SAC Number: S0350521080006