Alibaba Leverages AI Amid E-Commerce Challenges
Despite facing intensified competition in China's e-commerce arena, Alibaba Group Holding Ltd. (NYSE:BABA) is leveraging artificial intelligence (AI) to bolster its competitive edge.
Alibaba's Taobao platform features Wenwen, an AI chatbot, enabling shoppers to receive personalized product recommendations based on their preferences. For instance, users may encounter tailored suggestions like a Sony Group Corp. (NYSE:SONY) camera priced around $650, as reported by Nikkei Asia.
Beyond enhancing the shopping experience, Alibaba utilizes generative AI to streamline merchant operations. This includes simplifying tasks such as photo editing and virtual model creation.
Despite these advancements, Alibaba disclosed a 10% increase in net profit, reaching 79.7 billion yuan ($11 billion) for the fiscal year ending March, with revenue growing by 8% to 941.1 billion yuan.
Although Alibaba's market share on the Taobao and Tmall platforms dwindled from 80% in 2017 to 37% in 2023, CEO Eddie Wu reported double-digit growth in gross merchandise value (GMV) for these segments in the first quarter of this year.
Analysts attribute Alibaba's GMV growth to discounts and continued double-digit growth in the cloud business during the latter half of fiscal 2025.
