Alibaba Leverages AI To Boost Global E-Commerce Growth: Report

Zinger Key Points
  • Alibaba uses AI to support international expansion.
  • International sales grew 45%, outpacing overall 7% growth.
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Alibaba Group Holding BABA is reigniting its effort to expand internationally, leveraging artificial intelligence to support this goal.

The e-commerce giant is integrating its generative AI models to assist small sellers in overcoming language barriers and managing complex tasks like negotiating refunds, Zhang Kaifu, head of AI development at Alibaba’s international e-commerce unit told WSJ.

AI can play a significant role in cross-border e-commerce, particularly for smaller businesses, the Wall Street Journal reports.

Also Read: Amazon Launches Affordable Fashion Section to Compete with Temu and Shein

Zhang told WSJ that for China-based merchants yet to sell overseas, Alibaba’s platform offers AI and other services to help promote their businesses.

Facing slowing growth in China due to fierce competition and a weakened economy, Alibaba’s international e-commerce has become its fastest-growing division. In the quarter ending March, global sales grew 45%, compared to an overall growth of 7% for the company.

Zhang, who began leading the AI initiative a few months after the launch of OpenAI’s ChatGPT in late 2022, highlighted that internal tests showed AI tools could increase orders by up to 30%.

Alibaba stock lost over 16% in the last 12 months as it strives to unlock value through its AI and e-commerce endeavors.

Is Alibaba A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.

Alibaba has reported average annual revenue growth of 17.45% over the past 5 years. .

It's also important to pay attention to valuation when deciding whether to buy a stock. Alibaba has a forward P/E ratio of 9.06. This means investors are paying $9.06 for each dollar of expected earnings in the future. The average forward P/E ratio of Alibaba’s peers is 33.11.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

Price Action: BABA shares traded higher by 0.90% at $76.39 at the last check Wednesday.

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DisclaimerThis 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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