Alibaba’s International E-Commerce Unit Leverages Generative AI for Growth

Alibaba's International E-Commerce Unit Leverages Generative AI for Growth

Key Points:

  • Alibaba’s international e-commerce unit uses generative AI for translation, content creation, and product returns.
  • Alibaba International Digital Commerce Group has 300 million consumers annually and over one million merchants globally.
  • Zhang emphasized China’s parity with the U.S. in AI innovation, highlighting global developments in open-source AI technology.
  • Alibaba’s AI tools aim to improve merchant and consumer experiences, driving growth in international markets.

According to Kaifu Zhang, Alibaba’s group vice president, Alibaba’s international e-commerce unit is leveraging generative AI-powered tools to enhance cross-border merchant services, including translation, content creation, and product returns. At the Reuters Next Conference in Singapore, Zhang expressed optimism about AI’s potential for the company despite escalating tensions between China and the U.S.

“China is pretty much on par with the U.S. in the rate of AI innovation,” Zhang stated, underscoring the significant advancements in open-source AI technology being made globally, particularly in China and Europe. This statement reflects the company’s commitment to remaining at the forefront of AI development.

Alibaba has been striving to enhance the competitiveness of its global marketplaces, including AliExpress and Lazada, after restructuring its international e-commerce unit into a standalone business. The restructuring aims to address the challenges posed by competitors like Shein and NASDAQ-listed PDD’s Temu, which have outperformed Alibaba in sales and growth in recent years.

To regain its competitive edge, Alibaba International Digital Commerce Group has introduced generative AI tools designed to assist merchants in managing their businesses more efficiently. These tools offer automated translation services, streamline content creation, and simplify product return handling. By integrating these AI solutions, Alibaba aims to improve the user experience for merchants and consumers, thereby driving growth in its international markets.

Zhang highlighted that Alibaba International Digital Commerce Group now boasts 300 million consumers annually and over one million merchants worldwide. This unit has emerged as one of Alibaba’s fastest-growing segments, with earnings increasing by 44% from October to December compared to the previous year’s period. This growth underscores the successful implementation of AI-powered tools and the strategic focus on enhancing global e-commerce operations.

Despite the challenges posed by geopolitical tensions, Alibaba remains committed to expanding its international presence and leveraging cutting-edge AI technology to drive innovation. Zhang’s comments at the conference reflect a broader strategy to harness the power of AI to create a more competitive and efficient global e-commerce platform.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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