Alibaba is deploying generative AI across its e-commerce platforms to enhance product search and recommendations, resulting in a 20% increase in product relevance and a 10% boost in click-through rates during the Double 11 Shopping Festival. Additionally, the AI tools help merchants reduce costs, notably saving around 20 million yuan daily in customer service, with Alibaba planning to significantly increase its investment in AI technology.
Alibaba is undertaking a large-scale deployment of generative AI across its e-commerce platforms for the first time during this year’s Double 11 Shopping Festival. Vice President Kaifu Zhang shared insights exclusively with Bloomberg Group on how this technology is benefiting partner merchants and enhancing the overall user experience. The company has reworked its research and recommendation systems, leveraging a large language model to manage its massive product catalog of 2 billion listings, one of the largest in the world.
The AI system has been used to introduce product content and index the entire catalog, forming the foundation for an advanced search engine. This new search engine can understand complex, semantic queries, such as asking for the best gift for a stressed high school student experiencing headaches. Unlike traditional search engines that require specific product names, Alibaba’s AI comprehends the underlying needs and provides relevant product recommendations, significantly improving the shopping experience.
Zhang highlighted a 20% increase in product relevance due to the AI enhancements, which is a substantial improvement given Alibaba’s already mature technology stack. This uplift in relevance translates into a notable increase in consumer engagement, with a 10% improvement in click-through rates. The AI also introduces consumers to new products they might not have previously considered, adding an element of positive surprise to their browsing experience.
In addition to improving user experience, Alibaba’s AI tools are helping merchants reduce costs. The company offers a comprehensive suite of AI-powered services, including content generation, customer service, and marketing support. For example, AI-driven customer service alone is saving merchants around 20 million Chinese yuan per day, demonstrating significant operational efficiencies enabled by the technology.
Regarding future investments, Zhang did not provide specific figures but indicated that Alibaba plans to increase its capital expenditure beyond the previously pledged ¥380 billion. He noted that the usage of AI, measured in inference and token processing, is growing rapidly, underscoring the company’s commitment to expanding its AI capabilities and integrating them more deeply into its e-commerce ecosystem.