AI innovation is boosting how efficient businesses can be, leading to higher profit margins. With the recent release of ChatGPT’s store, business owners are starting to realise that AI can be used for way more than just content generation. In this blog, we will explore how Alibaba used AI to digitally transform its processes.

Alibaba is a prominent online marketplace which specialises in connecting global buyers with Chinese suppliers. They serve as a key platform for sourcing a wide range of products, from raw materials to finished goods, directly catering to international market needs.

Online shopping is dominated by AI software that tracks consumers’ journeys on their sites and transforms the way they communicate with brands. Alibaba is a whale when it comes to this sector, with $234 billion in revenue in 2023, growing 13.915% from the previous year. A large factor that has contributed to their success is their innovative integration of AI software.

Boosting Sales

Alibaba uses a range of cutting-edge AI tools, for example, a tool that they developed called ‘e-commerce Brain’ uses real-time online data to predict consumer spending habits. This allows them to give the consumers a more personalised customer journey, marketing more relevant products that will drive sales. Tools like this change casual browsers into loyal customers by elevating the customers’ overall online shopping experience.

Personal Touch at Scale

Alibaba also analyses mass amounts of user data with AI to gain insights into consumer buying habits and site navigation patterns. This AI-driven insight ensures users receive tailor-made recommendations, driving up sales and ensuring a personalised shopping experience. Tools like Adobe Analytics are a great way for smaller businesses to get these metrics without investing heavily in software. Adobe Analytics offers users the ability to track business intelligence (BI) which includes traffic data from websites, and customer journey analytics. These AI-driven insights can ensure that users receive tailored experiences personalised to their needs.

Streamlined Customer Interactions

Queries that Alibaba’s customers have are being addressed faster than ever before, thanks entirely to AI Chatbots. They recently announced that they are going to release an AI-powered chatbot to rival ChatGPT. The improved language capabilities in their systems mean they will be able to improve the customer’s experience and responses. This along with other AI chatbots currently in place will revolutionise their customer interactions, increase customer satisfaction, and will have played a contributing role in their increase in sales over the year 2023.

Efficient Supply Chains Through AI

Finally, predictive analytics allows Alibaba seamless inventory management, resulting in reduced costs and giving a better experience for customers. This is because their favourite products are always in stock, as their AI system can predict demand fluctuations before they are going to occur, allowing Alibaba to make the correct stock adjustments to cope with the peaks.

Alibaba’s journey demonstrates that AI is a game-changer when it comes to continuously improving the productivity of their business, bringing the company to new heights as well as reshaping the e-commerce market.

Although Alibaba is a massive corporation with over 230,000 employees, small businesses can still learn from their AI strategies and try to implement some AI of their own. As mentioned previously the new ChatGPT store has now opened and is hosting many different forms of AI. With the release of this, it’s giving smaller-scale businesses the chance to use AI even without a huge budget. By implementing AI into your business you can help build trust, optimise operations, and consistently deliver value to your customers.

If you’re interested in learning more about using AI for your business, get in touch with Lincoln Be Smarter. We offer consultancy that could help your business automate and grow with AI at the forefront.