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Alibaba Boosts E-Commerce Edge with AI, Despite Shrinking Market Share

Alibaba Boosts E-Commerce Edge with AI, Despite Shrinking Market Share
Alibaba Boosts E-Commerce Edge with AI, Despite Shrinking Market Share

Alibaba Group Holding Ltd (NYSE:BABA), confronted by a fierce e-commerce market in China, is leveraging artificial intelligence to enhance its competitiveness.

On Alibaba’s Taobao platform, shoppers can utilize Wenwen, an AI chatbot, for personalized product recommendations, such as a Sony Group Corp (NYSE:SONY) camera priced at approximately $650, tailored to the user’s specifications, the Nikkei Asia reports.

Introduced in 2023, Wenwen is powered by Tongyi Qianwen, or Qwen, a large language model developed by Alibaba’s cloud division.

Also Read: Alibaba Stock Dips as Huge Investment Losses In Q4 Overshadow Revenue Growth and Dividend

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In addition to aiding shoppers, Alibaba employs generative AI to streamline merchant operations, simplifying tasks like photo editing and virtual model creation.

Despite these innovations, Alibaba reported a net profit increase of 10% to 79.7 billion yuan ($11 billion) for the fiscal year ending March, with revenue growing 8% to 941.1 billion yuan.

Although Alibaba’s Taobao and Tmall platforms have seen their market share drop from 80% in 2017 to 37% in 2023, CEO Eddie Wu reported double-digit growth in gross merchandise value for these segments in the first quarter of the year.

Analysts flagged Alibaba’s double-digit year-on-year growth in GMV thanks to discounts. They expect cloud business to record double-digit growth in the back half of fiscal 2025.

BABA stock has lost over 4% in the last 12 months. Investors can gain exposure to the stock via Invesco Golden Dragon China ETF (NASDAQ:PGJ) and ProShares Online Retail ETF (NYSE:ONLN).

Price Action: BABA shares traded higher by 1.18% at $87.72 premarket at the last check on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Alibaba Photo Via Shutterstock

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This article Alibaba Boosts E-Commerce Edge with AI, Despite Shrinking Market Share originally appeared on Benzinga.com

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