Alibaba Uses AI to Boost Global E-Commerce Growth: Report – Alibaba Gr Hldgs (NYSE:BABA)

Alibaba Holding Group WOMAN resumes its international expansion efforts using artificial intelligence.

The e-commerce giant is integrating its generative AI models to help small merchants overcome language barriers and manage complex tasks such as negotiating returns, Zhang Kaifu, head of AI development at Alibaba’s international e-commerce division, told WSJ.

According to the Wall Street Journal, artificial intelligence has the potential to play a significant role in cross-border e-commerce, especially for smaller businesses.

Read also: Amazon Launches Affordable Fashion Division to Compete with Temu and Shein

Zhang told WSJ that for Chinese sellers who are not yet selling overseas, Alibaba’s platform offers artificial intelligence and other services to help promote their businesses.

With growth in China slowing due to fierce competition and a weakening economy, Alibaba’s international e-commerce business has become its fastest-growing division. Global sales jumped 45% in the quarter ended in March, compared with an overall increase of 7% for the company.

Zhang, who took over as the AI ​​initiative leader a few months after OpenAI launched ChatGPT in late 2022, said internal tests have shown that AI tools can increase order volume by up to 30%.

Alibaba shares have fallen more than 16% in the past 12 months as the company seeks to extract value through its artificial intelligence and e-commerce businesses.

Is Alibaba a good stock to buy??

When deciding to buy a stock, investors should consider a few key fundamentals. One of them is revenue growth. Buying a stock is essentially a bet that the company will grow and generate profits in the future.

Alibaba has recorded average annual revenue growth of 17.45% over the past 5 years.

It’s also important to look at valuation when deciding whether to buy the stock. Alibaba has a forward P/E ratio of 9.06. This means that investors are paying $9.06 for every dollar of expected future earnings. The average forward P/E ratio of Alibaba’s competitors is 33.11.

Other important metrics to look at include a company’s profitability, balance sheet, performance relative to a benchmark index, and valuation relative to competitors. For in-depth analysis tools and important financial data, check out Benzinga PRO.

Reduction: BABA shares were up 0.90% to $76.39 at last trade on Wednesday.

Read also:

Reservation: This content was prepared in part using AI tools and was reviewed and published by Benzinga editors.

Alibaba Photo via Shutterstock