Alibaba empowers 500,000 merchants with AI Toolkit ‘Aidge’
Over 100 million product listings on Alibaba International’s platforms have been enhanced and translated into multiple languages using AI, boosting market reach and purchase conversion rates.
Gen AI has significantly improved operational efficiency for merchants on Alibaba International’s e-commerce platforms. It has been applied to various scenarios, including product listing refinement, marketing, customer service, design, and process automation. In each case, generative AI has enhanced content quality, click-through rates, conversion rates, or customer satisfaction, sometimes by double digits.
AI capabilities now encompass advanced functions beyond basic text and image generation. Alibaba International has used AI for customisation and complex problem-solving in areas such as customer service, chargeback defence, and refunds.
In customer service, AI offers 24/7 availability for instant, informed responses using data from product detail pages (through Retrieval Augmented Generation, or RAG). Since its adoption in June 2024, AliExpress Choice reported a 29% increase in conversion rates from pre-sales inquiries, benefiting from AI’s ability to assist customers and facilitate shopping decisions.
AI also protects small and medium-sized businesses from financial losses due to chargebacks. Alibaba International’s Chargeback Agent generates dispute letters using order information such as payment and logistics details, resulting in a 15% increase in chargeback defence success rates.
Building on this success, Alibaba International is launching an AI Refund Agent to offer flexible refund solutions. This tool processes reasons behind e-commerce disputes, verifies evidence, and calculates refund amounts, aiming to optimise customer satisfaction while reducing merchant costs.
Additionally, AI helps lower product supply costs for e-commerce merchants. Alibaba International’s virtual try-on feature enables apparel merchants to create images displaying their products on virtual models by simply uploading a clothing item’s image. This feature offers a wide range of model styles and provides a cost-effective alternative to traditional model photoshoots.
“Global commerce represents a fertile ground for generative AI applications, particularly as LLMs are enhanced for greater multilingual capabilities. It is evident that small and medium-sized businesses stand to benefit the most from AI advancements, enabling them to overcome traditional barriers including the lack the access to talent and human expertise,” said Kaifu Zhang, Vice President of Alibaba International, who leads the company’s AI initiatives.
In addition to its own platforms, Alibaba International is also working with external partners in the cross-border e-commerce space to expand the reach of AI’s benefits. “We strongly believe that in the e-commerce space, generative AI is a real catalyst to fulfil Alibaba’s mission: to make it easy to do business anywhere,” added Zhang.
