SenseTime Group, a Chinese AI firm operating at a net loss, announced a comprehensive organizational restructuring on Tuesday to prioritize generative AI technologies. The Hong Kong-listed company, previously focused on computer vision and surveillance solutions, is strategically pivoting to generative AI in response to the industry-wide enthusiasm generated by OpenAI's ChatGPT.

Once regarded as one of China's leading AI companies, SenseTime has struggled to keep pace with competitors during the generative AI surge, with its stock price plummeting 61% from its initial offering three years ago.

In a filing to the Hong Kong stock exchange, the company expressed its intention to prioritize generative AI as its main business driver to foster growth, profitability, and financial stability.

This restructuring occurs as SenseTime's computer vision segment experiences a downturn, with its "traditional AI" division reporting a 50.6% decline in the first half of this year. Since its inception a decade ago, the company has yet to achieve profitability.

In early 2023, SenseTime introduced its large language model, SenseNova, asserting that its capabilities are on par with OpenAI's latest GPT version.

In 2021, the U.S. government added SenseTime to its export control list, citing the development of facial recognition technology allegedly used for the suppression of Uyghur Muslims. The company maintains its consistent denial of these allegations and its adherence to all applicable legal regulations.

The restructuring has created distinct business units, each with its own CEO, concentrating on key sectors including smart automotive, domestic robotics, smart healthcare, and smart retail, as per the company's official filing.