Baidu loses another AI expert, a setback in its accelerated push in the technology

Baidu, the operator of China’s dominant online search engine, has lost another top-notch artificial intelligence (AI) expert, the latest blow to the company’s effort in making the technology the centrepiece of its business revival plan.

Lin Yuanqing, former head of Baidu’s Institute of Deep Learning, whose research focus includes image recognition and human-computer interaction, has confirmed to the mainland media that he had resigned from Baidu in September and will set up his own AI business to “create big value” for traditional industries.

Lin was unreachable for comment on Friday afternoon. Baidu declined to comment, but numerous sources close to the matter have confirmed of Lin’s departure from the company.

Lin’s resignation is the latest high-level AI scientist to leave the Beijing-based technology company, which is betting huge on AI to turn around its business that was hit by a regulatory scandal in 2016.

The company, listed on Nasdaq, predicted on Friday that its sales will reach between 22.23 billion yuan (US$3.34 billion) to 23.41 billion yuan in the December quarter, falling short of the projected 24.8 billion yuan. Baidu executives had warned investors not to expect near-term gains from its Apollo autonomous car platform or voice assistant DuerOS, which required long-term investments.

“Baidu’s core search business is under threat by social media and e-commerce companies. Everyone in China internet has an AI focus, so Baidu does not really stand out,” said Kirk Boodry, an analyst with New Street Research.

“AI is not a business model in itself. Baidu does appear to be a likely leader in autonomous driving but that will not be monetised before 2020 and it is not yet clear how that will be done,” said Boodry, whose company has a “neutral” recommendation on Baidu.