The narrative of generative AI is that it can and has replaced people in jobs. So, it’s refreshing to see a senior executive for one of the world’s largest e-commerce companies speak of how its generative AI tools empower mom-and-pop stores to succeed in the global marketplace.
Speaking at the Reuters Next APAC conference in Singapore, Kaifu Zhang, Vice President of Alibaba International Digital Commerce Group (AIDC) and head of its artificial intelligence (AI) initiative, discussed how the company has been developing generative AI tools to help its one million merchants connect with its global customer base, which has 300 million active consumers yearly.
According to Zhang, AIDC has developed an e-commerce infrastructure with AI tools that will allow any of its merchants to sell their products, anywhere in the world.
This includes micro-enterprises, which Zhang called “mom-and-pop stores.” Using Alibaba’s AI tools, these small merchants can compete on a level playing field with larger enterprises in the international e-commerce market.
Empowering micro-enterprises with AI tools
Speaking about Alibaba’s AI technology, Zhang disclosed that Alibaba started building its AI tools last year, and there are now 40 e-commerce applications for generative AI, including applications for generating designs, marketing, and gaining consumer insight.
Using these AI tools, Alibaba has lowered the cost barrier for its merchants, enabling micro businesses to create their marketing material and content in-house and to sell, market, and communicate across borders in various languages.
Zhang also mentioned that the AI tools enabled country-specific language localisation, as words and terms can have different meanings in countries that use the same language.
Responsive AI chatbot for 24/7 customer service
Zhang highlighted that one of the most difficult applications for AI is Product Returns, which are “a pain point, a lose-lose situation for everyone”—usually involving additional shipping, storage and replacement costs.
With a multi-modal AI chatbot for customer service, a merchant acquires an online agent capable of “reasoning, decision making, process automation and content generation” that is always active, communicates in multiple languages, and can solve issues by itself.
As an example, Zhang spoke about how an AI customer service agent would handle a wrong-coloured dress return—the AI requested an image of the product from the customer, recognised the specific problem, and inferred a cost-effective solution such as “We refund you 40% if you agree to keep the dress.”
Zhang also remained optimistic about AI’s potential for the company, even in the face of increasing tensions between China and the U.S. “China is pretty much on par with the U.S in the rate of (AI) innovation,” said Zhang, who highlighted the global developments made in China and Europe in open-source AI technology.
Alibaba’s International Digital Commerce Group includes AliExpress, Lazada, Daraz, and Trendyol. It reported revenue of US$4 billion in Q3 2023, up 44% from the previous year.
Feature Image: Alibaba