--- title: "Alibaba: Investment in artificial intelligence in the e-commerce sector has achieved a break-even point" type: "News" locale: "en" url: "https://longbridge.com/en/news/261461440.md" description: "Alibaba Vice President Zhang Kaifu stated that the company's investment in artificial intelligence in the e-commerce sector has achieved a break-even point, with a 12% increase in advertising return on investment. Despite the market's cautious attitude towards the returns on AI investments, Alibaba still plans to invest over $50 billion in AI over the next three years. Zhang Kaifu introduced several applications of AI tools aimed at enhancing the accuracy of personalized search and virtual fitting. This disclosure coincides with the \"Double Eleven\" pre-sale period, and AI technology is expected to drive sales growth" datetime: "2025-10-16T13:10:42.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/261461440.md) - [en](https://longbridge.com/en/news/261461440.md) - [zh-HK](https://longbridge.com/zh-HK/news/261461440.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/261461440.md) | [繁體中文](https://longbridge.com/zh-HK/news/261461440.md) # Alibaba: Investment in artificial intelligence in the e-commerce sector has achieved a break-even point **Key Points** - Alibaba Vice President Kaifu Zhang stated to reporters on Thursday that the company's investment in artificial intelligence (AI) within its e-commerce business has already recouped costs. - Kaifu Zhang pointed out that preliminary tests show stable AI effectiveness, with a 12% increase in return on advertising spend. - Despite market concerns about companies over-investing in AI technology with little return, this Chinese tech giant remains firmly committed to AI delivering returns. - Alibaba, the Chinese e-commerce giant, has pledged to invest over $50 billion in artificial intelligence over the next three years. Alibaba has pledged to invest over $50 billion in artificial intelligence over the next three years. Although there are widespread market concerns about companies over-investing in AI technology with few tangible results, Alibaba remains highly confident in the return potential of AI. In February of this year, the company committed to investing 380 billion yuan (approximately $53 billion) in AI over the next three years; subsequently, in September, Alibaba announced further increases in investment in AI and cloud infrastructure. Kaifu Zhang is primarily responsible for AI applications related to Alibaba's e-commerce business. Earlier that day, he introduced a series of AI tools the company has launched, covering various aspects such as optimizing personalized search results and improving the accuracy of virtual try-ons. This disclosure coincides with Alibaba's launch of the "Double Eleven" pre-sale. "Double Eleven" is China's largest annual shopping event, similar to America's "Black Friday." Kaifu Zhang stated that preliminary tests show the effectiveness of AI technology remains stable, with a 12% increase in return on advertising spend. "It is very rare to see double-digit changes in such tests," he said in Chinese (translation provided by the U.S. Consumer News and Business Channel). Kaifu Zhang predicts that, thanks to the integration of AI technology, Alibaba's gross merchandise volume (GMV) during this year's "Double Eleven" shopping period, centered around November 11, will be positively impacted in a "very significant" way. Alibaba's e-commerce business in China remains the tech giant's largest source of revenue. In the quarter ending June 30, this business segment saw a year-on-year revenue growth of 10%, reaching approximately $19.53 billion. Despite lackluster consumer spending in China over the past few years, research firm Syntun estimates that during last year's "Double Eleven," sales on Alibaba's Tmall, JD.com, and Pinduoduo platforms grew by 20.1% year-on-year, totaling 1.11 trillion yuan At the end of August this year, Alibaba defined AI and consumption as "two historic opportunities" during its earnings call and stated that the company needs to make "historic scale" investments for this purpose. "Our top priority right now is to advance these investments," Alibaba's Chief Financial Officer (CFO) Toby Xu said at the time, "Therefore, at this stage, we may relatively lower our emphasis on profit margins, but that does not mean we are not concerned about profit margins." ### Related Stocks - [Alibaba Group Holding Limited (BABA.US)](https://longbridge.com/en/quote/BABA.US.md) - [BABA-W (09988.HK)](https://longbridge.com/en/quote/09988.HK.md) - [KraneShares 2x Long BABA Daily ETF (KBAB.US)](https://longbridge.com/en/quote/KBAB.US.md) - [YieldMax BABA Option Income Strategy ETF (BABO.US)](https://longbridge.com/en/quote/BABO.US.md) - [GraniteShares 2x Long BABA Daily ETF (BABX.US)](https://longbridge.com/en/quote/BABX.US.md) ## Related News & Research - [China's 'one-person companies' have exploded. 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