Alibaba: GenAI Tools Drive 30% Increase in eCommerce Orders
Alibaba Group is reportedly using generative artificial intelligence to strengthen its renewed efforts to expand overseas. The Chinese eCommerce firm is utilizing generative AI for tasks like providing translations for sellers on its platform and negotiating refunds. Zhang Kaifu, head of AI development at Alibaba’s international eCommerce unit, told The Wall Street Journal that internal tests showed that some applications, such as those helping sellers communicate in foreign languages, contributed to a 30% increase in orders for merchants.
Today, about 500,000 sellers are using Alibaba’s AI tools, which are built on the firm’s Tongyi Qianwen AI model. Common uses include creating marketing materials, selecting merchandise, interacting with customers, negotiating refunds and returns, and handling customer disputes of bank charges. These tools are valuable to the merchants using Alibaba’s eCommerce platforms because most are small sellers with limited staff.
The deployment of these tools comes as Alibaba has redoubled its efforts to expand overseas due to facing slower growth and greater competition in its domestic market. International eCommerce remains a smaller part of Alibaba’s business but has been the company’s fastest-growing division for five quarters. During the quarter ended in March, the division saw its revenue grow 45% year over year, compared with the company’s overall growth rate of 7%.
Companies across the retail industry have been deploying generative AI to deepen customer engagement, personalize shopping, and optimize supply chains. Kuo Zhang, president of Alibaba.com, said in June that AI has the potential to level the playing field in international commerce. Zhang noted that small businesses using the platform’s AI tools reported a 37% increase in product exposure.
