He believes that AI will simplify management tasks for sellers, which will drive the adoption rate to 100%.

To support this initiative, Alibaba is committing at least 380 billion yuan (approximately $52 billion) over three years to enhance its AI and cloud computing infrastructure.

The AI tools, introduced in early 2024, assist merchants in various areas such as marketing, product management, customer engagement, and risk control, which are crucial for enhancing cross-border e-commerce.

This investment marks the largest computing project funded by a single private enterprise in China.

Alibaba.com is targeting full adoption of its AI tools by merchants by the end of 2025, as stated by President Zhang Kuo.

Currently, over half of the approximately 200,000 merchants on Alibaba.com are utilizing AI applications weekly, showcasing a significant uptake of the technology.

Zhang is confident that merchants will recognize the benefits of AI, leading to its complete integration into their operations by the deadline.

The push for AI adoption aligns with the launch of Alibaba's new AI reasoning model, QwQ-32B, designed to compete with existing models like DeepSeek R-1.

Alibaba's strategy is focused on strengthening its cross-border e-commerce business through these AI advancements.

Analysts suggest that Alibaba's new XuanTie C930 chip could invigorate China's semiconductor industry by promoting open-source chips and enhancing Alibaba's AI capabilities.

Zhang also noted that large language models (LLMs) signify a major shift in global trade, comparable to past transitions in computing and payment systems.

Despite concerns over potential trade tensions with the U.S. and new tariffs on Chinese imports, Zhang has downplayed the impact on Alibaba's operations.