GenAI Tools Increase E-Commerce Orders by 30%

Alibaba Group he apparently uses generative AI to bolster its overseas expansion efforts.

The Chinese e-commerce company is using generative AI for tasks such as providing translations to sellers on its platform and negotiating refunds, Zhang Kaifuhead of artificial intelligence development at Alibaba’s international e-commerce unit, told The Wall Street Journal (WSJ) interview published on Wednesday (July 10).

Inspired by the launch OpenAI‘S ChatGPT In late 2022, Alibaba appointed Kaifu to lead a team of more than 100 engineers focused on building generative AI applications for the company’s overseas e-commerce business, according to the report.

In the first year of the project, Zhang focused on identifying AI use cases. Internal tests showed that some applications — such as those that help salespeople communicate in foreign languages ​​— contributed to a 30% increase orders for buyers– we read in the report.

About 500,000 merchants currently use Alibaba’s AI tools, according to the report. Typical use cases include creating marketing materials, selecting merchandise, interacting with customers, negotiating returns and complaints, and resolving customer disputes over bank fees, according to the report.

These tools – built on the company’s knowledge Tongyi Qianwen AI models, the report said, are valuable to merchants using Alibaba’s eCommerce platforms because most of them are small sellers with limited staff.

The rollout of these tools comes as Alibaba doubles down on its efforts to expand overseas, facing slower growth and greater competition in its domestic market, according to the report.

International e-commerce still makes up a smaller portion of Alibaba’s business, but it has been the company’s fastest-growing division for the past five quarters, according to the report. The division’s revenue rose 45% year over year in the quarter ended in March, compared with the company’s overall growth rate of 7%.

Retail companies are adopting generative AI to deepen customer engagement, personalize shopping experiences and optimize supply chains, according to a PYMNTS Intelligence report,What Generative AI Has in Store for the Retail Industry.”

Kuo ZhangPresident Alibaba.comsaid in June that artificial intelligence has the potential to level the playing field international tradeZhang said small businesses using the platform’s AI tools saw a 37 percent increase in their product recognition.

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