Alibaba says its AI spending in e-commerce is already breaking even

Alibaba says its AI spending in e-commerce is already breaking even

The Chinese tech giant is spending tens of billions of dollars on AI despite concerns that companies are spending too much on the tech with limited results.

Alibaba Claims AI E-Commerce Tools Already Pay for Themselves

Alibaba Group said its investment in artificial intelligence has reached break-even levels within its e-commerce business.  The company reported that the AI systems powering product recommendations, merchant tools, and logistics in Taobao and Tmall are now generating enough returns to offset development costs. The announcement highlights how Alibaba’s AI-driven retail strategy is starting to sustain itself financially, as the company continues t…

Alibaba Says It Has Broken Even on AI Spending in Retail Operations

Alibaba Group said its artificial intelligence (AI) spending in core eCommerce operations is already breaking even, marking a rare point of measurable return in large-scale AI investment, according to a CNBC report. The company said AI has boosted its return on advertising spend by 12% across Taobao and Tmall, citing gains from smarter ad matching, dynamic pricing, and personalized product recommendations. The results, executives said,…