Alibaba’s International Business Launches Updated AI Translation Tool

Alibaba, the Chinese e-commerce giant, has been investing heavily in its fast-growing international business in response to slowing growth in its China-focused Taobao and Tmall platforms. One of the latest developments from Alibaba’s international arm is the launch of an updated version of its artificial intelligence-powered translation tool, Marco MT. According to Alibaba, this new tool surpasses similar products offered by Google, DeepL, and ChatGPT, as evaluated by the translation benchmark framework Flores.

The AI translation tool, which was introduced as an update to a previous version that already boasts 500,000 merchant users, allows sellers to create product pages in the language of their target market. This new version of the tool is based on large language models, enabling it to leverage contextual clues such as cultural nuances and industry-specific terms. Kaifu Zhang, the vice president of Alibaba International Digital Commerce Group, emphasized that the primary goal of this AI tool is to enhance the bottom line for merchants, ultimately benefiting the platform as a whole.

Alibaba’s translation tool is powered by its own model called Qwen and supports 15 languages, including Arabic, Chinese, English, French, German, Japanese, and Spanish. Zhang anticipates significant demand for the tool from regions like Europe, the Americas, and emerging markets. Furthermore, he highlighted the growing trend of Chinese companies venturing into international markets for expansion opportunities, particularly in the e-commerce sector.

Since the initial launch of Alibaba’s AI translation tool last year, merchants have utilized it for over 100 million product listings. Similar to other AI-based services, merchants are charged based on the volume of translated text, although specific pricing details for the updated version were not disclosed. By focusing on contextual translation, Alibaba aims to enhance the consumer purchasing experience by delivering more authentic and culturally relevant content.

Alibaba’s international business encompasses platforms such as AliExpress and Lazada, with a primary focus on Southeast Asia. In the most recent quarter, the international unit reported a sales growth of 32% to $4.03 billion, contrasting with a 1% decline in sales for Alibaba’s Taobao and Tmall platforms. The Taobao app, which recently introduced an AI-powered English version for users in Singapore, continues to be popular among consumers in the region.

Looking ahead, Nomura analysts anticipate a slight slowdown in Alibaba’s international revenue growth to 29% in the quarter ending September, with narrowing operating losses. While Alibaba has not yet announced its quarterly earnings release date, the company’s strategic focus on expanding its international business through innovative AI tools like Marco MT demonstrates its commitment to driving growth in new markets.