Alibaba Says AI Spending in E-Commerce Has Reached Break-Even

October 21, 2025
Alibaba said its artificial intelligence investments in its e-commerce platforms Taobao and Tmall are already breaking even, with early results showing a 12% increase in advertising returns.

Alibaba Group has reached break-even on its artificial intelligence spending in e-commerce, reports CNBC. Vice President Kaifu Zhang said the company is already recouping its AI investments through measurable gains across platforms including Taobao and Tmall.

Zhang noted that early testing showed a 12% increase in returns on advertising spend, driven by improved personalization, ad matching, and virtual try-on accuracy. He said these results are consistent across trials and are expected to positively impact sales during the upcoming Singles Day shopping period on November 11.

The company has pledged to invest 380 billion yuan (about $53 billion) over the next three years in artificial intelligence and cloud infrastructure. Zhang oversees Alibaba’s e-commerce AI applications, which include tools designed to refine search results and enhance user engagement.

Alibaba’s e-commerce unit remains its largest revenue source, generating the equivalent of $19.53 billion in the quarter ended June 30, a 10% increase year over year.

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