What: Alibaba is offering an array of AI-based tools to enhance cross-border retail.

Why it is important: It is all abouèt the culture, as marginal cost of technology is going down. What is important is the capability of each company to leverage their competitive advantage with such new tech.

Alibaba's International Digital Commerce Group is leveraging generative AI-powered tools to enhance cross-border merchant services, including translation, content creation, and managing product returns. Kaifu Zhang, the vice president of the unit and head of its AI initiative, discussed this strategic focus during his appearance at the Reuters Next Conference in Singapore. He expressed optimism about AI's potential within Alibaba, despite ongoing tensions between China and the U.S., and pointed out that China matches the U.S. in AI innovation rates.

Zhang emphasized the competitive edge gained from innovations in open-source AI technology, particularly in China and Europe. Following a restructuring that turned its international e-commerce unit into a standalone business, Alibaba has been trying to boost competitiveness in its global marketplaces like AliExpress and Lazada. This restructuring comes as Alibaba faces increasing competition from other China-based companies like Shein and PDD's Temu, which have shown more rapid growth in sales.

Alibaba bets on gen AI tools for overseas merchants