SHANGHAI - Xiao-I Corporation (NASDAQ:AIXI), a prominent artificial intelligence firm, announced today a contract renewal with Inner Mongolia Yili Industrial Group Co., Ltd. (A Share:600887), a leading dairy company. The renewed partnership signifies a strategic shift as Yili adopts Xiao-I's subscription-based Model as a Service (MaaS) for its AI-driven customer service platform, aiming to improve operational efficiency and service delivery.
The MaaS model is part of Xiao-I's broader initiative to enhance client flexibility and scalability in software and AI services. This transition is expected to bolster Xiao-I's financial stability by fostering customer loyalty and ensuring more predictable cash flows.
Since 2021, Xiao-I has been supplying Yili with advanced AI solutions, including an intelligent voice customer service platform powered by Xiao-I's proprietary Hua Zang large language model (LLM). These solutions are designed to efficiently handle the high volume of customer inquiries Yili receives for its diverse array of products, including dairy, beverages, and packaged water.
Hui Yuan, CEO of Xiao-I, expressed pride in the ongoing partnership with Yili, acknowledging the company's global standing in the dairy industry and the strengthened relationship through continuous innovation.
Xiao-I Corporation, established in 2001, is a cognitive intelligence enterprise that provides a wide range of AI technologies, such as natural language processing, voice and image recognition, machine learning, and affective computing. These technologies have been applied across various business scenarios to support digital transformation and intelligent upgrading.
The announcement contains forward-looking statements regarding the company's plans and performance expectations, subject to risks and uncertainties that could cause actual results to differ materially. These include Xiao-I's strategic goals, product and service demand, competition, technological changes, regulatory environment, and economic conditions in China, among other factors detailed in SEC filings.
Investors and media inquiries should be directed to Ms. Berry Xia at ir@xiaoi.com. This news is based on a press release statement.
In other recent news, Xiao-I Corporation, an artificial intelligence firm, has announced a projected 25% revenue growth for the fiscal year ending December 31, 2024. This financial forecast comes alongside a planned reduction in research and development expenses aimed at enhancing profitability. The company is also awaiting a verdict in a patent infringement lawsuit against Apple Inc (NASDAQ:AAPL)., a case that could significantly impact both companies' intellectual property strategies.
In addition to these developments, Xiao-I has introduced its Hearview Smart Glasses in the U.S. market, a product designed to assist individuals with hearing impairments. The company has also secured $3.26M in senior convertible notes from an institutional investor. Furthermore, Xiao-I has formed partnerships with a major telecommunications provider and a key government agency in Hong Kong, implementing its AI Chatbot in customer service operations to enhance efficiency.
The company has also announced collaborations with a major international insurance provider and a leading Chinese bank to improve their customer service operations and knowledge management systems, respectively. Finally, Xiao-I has initiated an AI-driven Live Chat system for a major automobile industry client and is set to launch its latest product, OOTDiffusion, a virtual try-on technology. These are recent developments in Xiao-I's ongoing commitment to leveraging its AI technologies to support the digital transformation and intelligent upgrading of industries.
InvestingPro Insights
Xiao-I Corporation's (NASDAQ:AIXI) latest contract renewal with Yili marks a pivotal step in the company's strategy to leverage its artificial intelligence expertise for long-term partnerships. The shift towards a subscription-based Model as a Service (MaaS) with a focus on AI-driven customer service platforms is designed to enhance Xiao-I's revenue predictability and customer engagement.
InvestingPro data indicates that Xiao-I operates with a market capitalization of approximately $27.61 million. Despite an impressive gross profit margin of 66.63% for the last twelve months as of Q4 2023, the company's financial health is a concern due to a significant debt burden, as reflected in their negative P/E ratio of -1.08. This financial position may hinder its ability to make interest payments on debt, as noted in one of the InvestingPro Tips.
Another InvestingPro Tip highlights that Xiao-I's stock has experienced high price volatility, which could be attributed to its recent performance, with the stock price declining by over 80% in the last six months. This volatility may present both risks and opportunities for investors considering the company's long-term profitability prospects, which analysts predict will turn positive this year.
For investors seeking a deeper analysis of Xiao-I Corporation's financial health and stock performance, there are an additional 15 InvestingPro Tips available, offering insights that could guide investment decisions. To explore these insights, please visit: https://www.investing.com/pro/AIXI.
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