WeChat is an indispensable part of daily life in China and Tencent is trying to tap into its huge user base to expand use of its AI services.

Tencent is testing its AI assistant Xiaowei inside WeChat for 1.4 billion users, with shares surging 10.5% on the news. Here's what investors need to know.

Tencent has begun testing Xiaowei, a voice-and-text AI assistant built into WeChat, with a full public rollout targeted for the third quarter.

Known as Weixin in China, the super app has made the new AI assistant available to a small number of users, according to a statement from WeChat on Monday. Users are able to…