🌐 Alibaba’s AI Tool Takes the Lead
Alibaba’s international unit has unveiled an improved AI-powered translation tool, Marco MT, claiming it surpasses rivals like Google, DeepL, and ChatGPT. The tool supports 15 languages, including Arabic, French, and Spanish. According to Kaifu Zhang, the tool is designed to “help merchants’ bottom line,” and enhance the global shopping experience. Alibaba has been growing its international business rapidly while its China-focused Taobao and Tmall businesses have slowed. This update aims to aid Alibaba's growing international platforms like AliExpress and Lazada.
📈 Merchant Adoption and Use
The updated AI tool has seen significant adoption, with 500K merchants already using it since its initial release. Sellers across different regions can easily translate product listings for new markets. Zhang expects demand to rise in Europe, the Americas, and emerging markets. On Alibaba.com, developing countries account for about half of the top 20 active users of AI tools, highlighting a growing trend toward cross-border commerce driven by better language support.
💡 Contextual Translation for Better Sales
Unlike standard translation models, Marco MT focuses on contextual accuracy. This means it can better capture industry-specific terms or cultural nuances, improving the buyer’s experience. Zhang cited an example where an overly literal translation of a Chinese product description could mislead potential buyers, but the updated tool resolves such issues, leading to higher conversion rates. This contextual translation is expected to boost performance in Alibaba’s popular Double 11 shopping festival in November.
📊 Global Growth Amid Domestic Challenges
While Alibaba’s international business reported a 32% growth in sales last quarter, its domestic platforms Taobao and Tmall only saw a 1% decline. The company has been increasingly looking beyond China for growth, with platforms like Lazada targeting Southeast Asia. Analysts predict a 29% year-on-year revenue increase for its international arm for the quarter ended in September, though Alibaba hasn’t announced the official earnings date yet. As global competition heats up, AI tools like Marco MT may give Alibaba a competitive edge.
Will Alibaba’s new AI tool reshape global e-commerce?
