Alibaba Says AI Spending in E-Commerce Has Reached Break-Even
Alibaba Group has reached break-even on its artificial intelligence spending in e-commerce, reports CNBC. Vice President Kaifu Zhang said the company is already recouping its AI investments through measurable gains across platforms including Taobao and Tmall.
Zhang noted that early testing showed a 12% increase in returns on advertising spend, driven by improved personalization, ad matching, and virtual try-on accuracy. He said these results are consistent across trials and are expected to positively impact sales during the upcoming Singles Day shopping period on November 11.
The company has pledged to invest 380 billion yuan (about $53 billion) over the next three years in artificial intelligence and cloud infrastructure. Zhang oversees Alibaba’s e-commerce AI applications, which include tools designed to refine search results and enhance user engagement.
Alibaba’s e-commerce unit remains its largest revenue source, generating the equivalent of $19.53 billion in the quarter ended June 30, a 10% increase year over year.
We hope you enjoyed this article
Consider subscribing to one of our newsletters like Enterprise AI Brief or Daily AI Brief.
Also, consider following us on social media:
More from Enterprise
Oct 17 OpenAI Adds Slides and Parallel Agents to ChatGPT Oct 16 Nextech3D.ai Adds Agentic AI to Map D Event Platform Oct 16 McGraw Hill Adds AI Study Tools to Connect Oct 16 RapidCanvas Raises $29 Million to Expand Enterprise AI Platform Oct 16 Goodweek Raises $12 Million for AI Management PlatformRetail & Ecommerce AI Weekly
The weekly on AI in retail and ecommerce: shopping agents, online stores and marketplaces, checkout, and AI inside physical stores.
Market report
2025 Generative AI in Professional Services Report
Thomson Reuters
This report by Thomson Reuters explores the integration and impact of generative AI technologies, such as ChatGPT and Microsoft Copilot, within the professional services sector. It highlights the growing adoption of GenAI tools across industries like legal, tax, accounting, and government, and discusses the challenges and opportunities these technologies present. The report also examines professionals' perceptions of GenAI and the need for strategic integration to maximize its value.
Read moreYou may also like
BCG Finds Nearly Half of Companies Generate Value From AI
Huawei Forecasts AI Agents Will Account for Over 90% of Traffic by 2035
Synchrony Survey Finds Fraud Protection Could Increase AI Shopping Use
Dresner Research Finds 18% Average Return on AI Investment
UCLA Forecast Says AI Investment Adds Nearly One Point to Core US GDP Growth
Daily AI Brief: the AI news that matters, in your inbox.