Alibaba’s international arm recently launched an updated version of its AI-powered translation tool called Marco MT, which the company claims is superior to competing products offered by Google, DeepL, and ChatGPT. The new model was evaluated by translation benchmark framework Flores, with the company stating that it has already garnered 500,000 merchant users. This tool allows sellers to create product pages in the language of their target market, facilitating cross-border e-commerce transactions.
The latest version of the translation tool is designed using large language models, enabling it to leverage contextual clues like culture and industry-specific terms. Kaifu Zhang, vice president of Alibaba International Digital Commerce Group, stated that the goal of the AI tool is to enhance the bottom line of merchants, ultimately benefiting the platform as a whole. The model supports 15 languages and is expected to have significant demand in Europe, the Americas, and emerging markets, with developing countries representing a significant portion of active users.
Chinese companies have been increasingly venturing into international markets for growth opportunities, particularly in e-commerce. Platforms like PDD Holdings’ Temu, fast fashion retailer Shein, and ByteDance’s TikTok have made successful entries into the global market. Alibaba’s AI translation tool, Qwen, has been utilized extensively by merchants for over 100 million product listings since its initial launch. The tool’s pricing model is based on the amount of translated text used by merchants, and the updated version is included in service bundles for those seeking exposure to overseas customers.
The updated translation engine aims to provide a more authentic expression of product descriptions, enhancing the shopping experience for consumers, especially during events like Double 11, Alibaba’s annual shopping festival on November 11th. The international business segment of Alibaba, which includes platforms like AliExpress and Lazada, reported a 32% sales growth to $4.03 billion in the quarter ended June, in contrast to a 1% drop in sales for the main Taobao and Tmall e-commerce business, which is focused on China.
Alibaba’s presence in Southeast Asia, with a particular focus on platforms like Lazada targeting that region, has contributed to its international revenue growth. An AI-powered English version of the Taobao app was launched in Singapore in September to cater to local consumers. Nomura analysts predict that Alibaba’s international revenue growth may have slowed slightly to 29% year-on-year in the quarter ended September, with operating losses narrowing. The company has not yet announced when it will release quarterly earnings results.
