Alibaba is banking on Gen AI tools for overseas sellers, says CEO

Chinese tech giant AlibabaThe company’s international e-commerce arm uses generic AI-based tools to help cross-border sellers with translation, content creation and product returns, said group vice president Kaifu Zhang.

Speaking on stage at the Reuters Next conference in Singapore, the chief executive who heads Alibaba A representative of the International Digital Commerce initiative dedicated to artificial intelligence (AI) said he is optimistic about the potential of AI for the company, even amid rising tensions between China and the US.

“China is roughly on par with the U.S. in terms of AI innovation speed,” said Zhang, who pointed to China and Europe’s global development in AI open-source technologies.

Restructuring

The burgeoning tech conglomerate is grappling with how to make its global marketplaces, including AliExpress and Lazada, more competitive after spinning off its international e-commerce division into a standalone company.

The early bird advantage has eroded in recent years, with sales and growth dwarfed by China-founded Shein and NASDAQ-listed PDD Temu.

According to Zhang, Alibaba International Digital Commerce Group currently has 300 million annual customers and over one million merchants worldwide.

The unit became one of Alibababrightest growth areas. Profits rose 44% in the October-December period compared with a year earlier.

In May this year, Alibaba beat analysts’ estimates for fourth-quarter revenue as a focus on low-priced goods in response to cautious consumer spending helped boost domestic e-commerce sales. The company’s domestic e-commerce arm, Taobao and Tmall Group, grew 4% year over year, with order volume rising by double digits.

The company has endured a tumultuous year since it announced the biggest reorganization in its 25-year history last March, splitting into six divisions and refocusing on its core businesses, including its domestic e-commerce business.