Alibaba introduced its latest use of artificial intelligence (AI) to push B2B marketplace services — this time in the form of a new tool for sourcing.
About 30,000 businesses on the marketplace use Alibaba’s AI tools to increase product exposure in targeted markets. Sellers on the marketplace say the practice helps them grow, even with limited internal staff.
Now Alibaba is rolling out its latest tool: an AI-powered conversational sourcing engine.
Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both operate in China.
How Alibaba’s new AI tool for B2B works
Unlike traditional search engines, which rely heavily on simple ranking and indexing, Alibaba’s AI sourcing engine will focus on understanding natural language and transforming it into professional sourcing requests.
It can even predict sourcing needs and provide suggestions. Another feature also allows complex queries or full documents as inputs. The system will distinguish and respond to them in natural language, according to Alibaba.
“Traditional search engines evaluate web page importance through interlinking, credibility and ad spend,” said Alibaba.com president Kuo Zhang. “In this AI era, the B2B sourcing engine offers an intuitive and organic way to query, as well as rapidly and accurately match business buyers and business sellers based on their proven track record.”
The sourcing engine’s features
Alibaba’s sourcing engine includes two significant features:
- Reconstruction of information.
- A digital assistant.
First, in reconstructing information, Alibaba looked at how ecommerce has traditionally used product listings with titles, descriptions, keywords and pictures. Business buyers often need to compare multiple suppliers. With that in mind, the sourcing engine will reorganize such information to enable direct, custom-made and side-by-side comparisons, Alibaba said.
Next, the digital assistant will leverage 25 years of expertise in digitalizing various trade aspects — products, payments, logistics, customs and currency exchanges. Alibaba believes its AI technology in this context can now mimic the experience of having a sourcing professional at a buyer’s side.
“This technology can level the playing field and significantly reduce costs, enabling small to medium enterprises (SMEs) to become integral players in the global supply chain,” Alibaba said.
Alibaba’s larger push for B2B AI tools
In November, Alibaba International Digital Commerce Group introduced its generative artificial intelligence (AI) toolkit, branded “Aidge,” which has been adopted by approximately 500,000 merchants, with daily API usage reaching 50 million calls.
Features include a virtual try-on tool for apparel and a 24/7 AI customer service capability.
Since last April, Alibaba International has assembled an AI business team of 100 analysts and developers.
In May, the marketplace company surveyed 500 micro-, small and medium-sized enterprise (MSME) companies that do business on Alibaba.com and range in size from one to 250 employees.
Among the survey’s findings:
- 25% to 35% of respondents use AI daily.
- Using AI tools led to an average 37% increase in product exposure to promote growth in commerce.
- Companies using AI tools accepted 70% of product optimization suggestions.
The survey also found that companies from developing countries accounted for much of the use of the marketplace’s AI tools.
“Among the top 20 countries making the most frequent use of Alibaba.com’s AI tools, approximately 50% are from developing countries,” Alibaba assessed.
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