Alibaba International has unveiled its AI-powered suite, “Aidge”, becoming one of the early movers harnessing recent advancements in artificial intelligence to improve retail operations. Just to recap, Aidge, is an acronym for “AI for digital and global entrepreneurship,” and is built on the firm’s proprietary large language models (LLMs) and computer vision models. Designed to simplify and enhance operations for small and medium-sized enterprises (SMEs) engaged in internationa
Alibaba International has unveiled its AI-powered suite, “Aidge”, becoming one of the early movers harnessing recent advancements in artificial intelligence to improve retail operations.Just to recap, Aidge, is an acronym for “AI for digital and global entrepreneurship,” and is built on the firm’s proprietary large language models (LLMs) and computer vision models.Designed to simplify and enhance operations for small and medium-sized enterprises (SMEs) engaged in international trade, Aidge represents a new frontier in digital commerce. Spearheaded by Kaifu Zhang, vice president of Alibaba International, this suite of tools is built on the company’s deep insights into e-commerce, leveraging proprietary large language models and computer vision technologies.From navigating language and cultural barriers to grappling with high marketing costs and talent shortages, SMEs have long sought solutions that are both effective and accessible. Aidge, with its array of more than 15 application programming interfaces (APIs), offers promising avenues for enhancing business performance, particularly in areas like content localisation, customer service, and marketing.The firm’s move to pilot test Aidge, involving software partners and independent service vendors, underscores its commitment to co-creating solutions that resonate with the needs of today’s businesses. The purpose and challengesAccording to Zhang, the purpose of Aidge goes much further than just to overcome the pervasive language and cultural barriers faced by SMEs when they venture into the global arena.“It goes beyond the issue of language, but also local consumer insights, understanding of local cultural nuances, and how to refine and tailor product selling points to the local market are key to connecting with local consumers,” he told Inside Retail.He went on to say that overcoming these language and cultural barriers is crucial for any SMEs to succeed globally.“Cost and competition are also significant challenges for SMEs seeking global expansion. They are essentially competing, not only with other SMEs, but also the larger and more established companies,” he added.Zhang also noted that marketing and user acquisition have become more expensive due to the fierce online competition. “SMEs are not well equipped with technology and financial resources, and that’s another obstacle for them to compete in a cost-effective fashion,” he said.Overcoming restrictionsZhang alluded to the fact that another challenge in the global marketplace is restricted access to talent. “SMEs require teams across different disciplines, including design, finance, customer service, and compliance. They must also navigate complex compliance regulations and provide customer support in multiple languages,” he explained.He believes that addressing these challenges is the driving force behind Alibaba International’s launch of the Aidge suite. He hopes the suite will empower SMEs to overcome these barriers and achieve success in the global marketplace.“Aidge is built on our proprietary large language models (LLMs) and computer vision models. These models are trained on the company’s deep insights in global e-commerce operations, allowing it to boost business performance and reduce costs for enterprises,” he elaborated.Zhang said LLMs are especially powerful in comprehending multimodal signals, allowing them to perform various analytical tasks such as analysing reviews in a site instantaneously. These LLMs are able to process vast amounts of review data and present it in a clear and concise way. “Aidge’s content localisation capabilities go beyond mere translation, ensuring that localised content remains authentic and conveys the essence of a product to consumers in different markets,” he said.Lowering costsWhen it comes to lowering marketing and user acquisition costs, Aidge employs AI content generation models that help SMEs craft marketing messages, generate advertising creatives, and personalise those messages to their consumers in different markets. “With the help of AI, SMEs can engage in marketing in a more efficient manner, leading to higher conversion rates and lower costs,” he stressed. Zhang cited an example of an SME in Singapore seeking to expand into Europe. In most cases, language barriers and time zone differences could pose significant challenges.“With Aidge’s multilingual customer service capabilities, SMEs can provide prompt and effective customer support, regardless of location or time zone,” he added.Aidge’s AI-powered customer service not only engages in conversations but also creates API access and solves real problems for customers. “This capability is achieved through the combination of LLM technology and the integration of recent advancements in agent technologies,” he noted.By providing access to a top-tier talent pool of AI-powered customer service representatives and compliance officers, Aidge simplifies global operations for SMEs.Enhancing conversions and satisfactionSo far, data from the company’s internal application of Aidge has demonstrated the AI suite’s ability to significantly enhance order conversion, consumer satisfaction and time efficiency for SMEs.“Aidge is progressively rolling out its services to merchants on our e-commerce platforms and intends to serve a wider base of SMEs through collaborations with Software As Services (SaaS) partners,” he said.It is currently inviting SaaS partners and independent software vendors (ISVs) to participate in pilot testing, with a staged rollout by region anticipated by the end of this year.Zhang believes that AI will become a standard feature for businesses and people in their daily lives, and it’s poised to change the course of global e-commerce and even global business in the next decade.“We will continue to increase our investment in improving the operational efficiency and effectiveness of businesses across the globe. Our AI technologies extend far beyond e-commerce and we aim to assist businesses from all industries to benefit from the advancements in AI,” he concluded.