AI Tools Are Empowering Small Businesses Around the World: Alibaba.com Report

Zhang speaks at a session organized by the United Nations International Trade Center (ITC) to mark MSME Day. Photo source: Alibaba Group

According to a recent study by B2B trading platform Alibaba.com, more than a quarter of micro, small and medium-sized enterprises (SMEs) worldwide use AI on a daily basis.

Alibaba.com released the results on SME Day, a holiday celebrating the impact of these enterprises, which account for more than 70% of global employment and half of the world’s gross domestic product.

Alibaba.com, which serves over 48 million SME customers and over 200,000 SME suppliers, has served as a launchpad for SMEs to operate and grow for decades.

Now, the selection of AI-powered tools available on the platform gives SMEs the opportunity to expand their business reach even further.

“In short, we are building a global supply chain for and by AI-powered SMEs,” said Kuo Zhang, president of Alibaba.com, who participated in a panel hosted by the UN International Trade Centre last week to mark SME Day.

According to Zhang, the platform’s AI features have been implemented by 30,000 small and medium-sized enterprises (SMEs).

According to the report, these companies, which employ between one and 250 people, saw a 37 percent increase in product recognition using Alibaba.com’s AI tools and accepted 70 percent of their optimization suggestions.

“Thanks to AI, my Alibaba.com store runs on autopilot, which has saved us a lot of time since it’s just me and one employee managing our business,” said Sieu To, deputy managing director of Vietnamese electric fan maker Hanh Sanh Co.

Supporting emerging markets

According to a recent survey of 500 SMEs conducted by Alibaba.com, the use of AI is particularly widespread in developing regions and among small businesses with limited resources.

About half of the countries with the highest levels of adoption of Alibaba.com’s AI tools are developing economies, where the platform has become a key bridge between local businesses and international markets.

“Leveraging e-commerce platforms like Alibaba.com has been key in helping us overcome local market challenges and expand our reach,” noted Dagmawit Abebe, owner of Ethiopian coffee brand Kedemt Coffee.

On the African continent, which is home to 33 of the world’s least developed countries according to the UN, Alibaba.com is working to help 100 SMEs build their global B2B presence.

In addition, Alibaba.com has committed that the majority of its supplier events and seminars in fiscal year 2025 will be held in developing countries.

Read the full report below