E-commerce firms rush to leverage smart tech

Chinese e-commerce platforms are scrambling to leverage fast-developing artificial intelligence technologies to help in the digital and intelligent transformation of enterprises, while boosting production efficiency and revving up product sales, experts said.

Chinese tech heavyweight Alibaba Group Holding Ltd's business-to-business online trading platform 1688 said it has integrated Chinese AI startup DeepSeek's open-source large language model into its system, with plans to gradually provide related services to merchants starting mid-February.

The platform also announced that all AI-powered products offered to merchants will be free, while its newly introduced AI digital employees will help merchants improve the efficiency and intelligence level of management, and reduce operational costs.

Wang Qiang, general manager of 1688's merchant development center, said the platform has always been committed to empowering businesses through the in-depth application of AI and providing strong support for the digital transformation of the traditional manufacturing industry.

Wang said along with the emergence of DeepSeek, the use of AI has entered into a new stage, emphasizing that major internet companies are accelerating AI applications in fields including consumption and production, and this shift will significantly elevate the efficiency of industries, injecting strong momentum for future innovation and development.

Wang's comments came after the recent launch of DeepSeek's open-source and cost-effective AI model captured worldwide attention and sent shock waves through the tech industry.

The performance of DeepSeek's latest model is on par with leading models from tech heavyweights such as OpenAI, but at only a fraction of the cost and computing power of its rivals amid tightened export controls on AI chips from the United States.

CITIC Securities said in a research note that homegrown AI models have made significant technological progress based on low costs, high performance and open-source features, which will drive the application of AI technology in a diverse range of fields.

Industry insiders said innovative digital technologies represented by generative AI have been applied to online e-commerce sites, with the potential to change the way people shop by providing interactive consumer experiences and propelling the digital transformation of traditional retailers.

For instance, AI-powered virtual hosts that bear a close resemblance to real humans in appearance and behavior have increasingly been utilized in livestreaming e-commerce to help retailers introduce various products and spur sales. These virtual hosts can mimic human facial expressions and movements, and interact naturally with consumers while answering their queries promptly.

Mo Daiqing, a senior analyst at the Internet Economy Institute, a domestic consultancy, said AI is improving all parts of e-commerce, from supply chains to how businesses interact with customers, while the shift toward digital platforms and AI-driven trade opens new frontiers for businesses, particularly small and medium-sized enterprises, which now have digital tools to engage with international markets.

Mo said AI-powered virtual livestreamers can play an important role in finishing tedious and repetitive tasks, while bringing a feeling of freshness to users, enhancing the shopping experience and boosting product sales, thus allowing human hosts to devote more time to creative work. However, they will not replace human hosts, she added.

According to 1688, an increasing number of Chinese merchants have leveraged online marketplaces to expand their presence abroad.

Overseas cross-border orders on the 1688 platform surged more than 70 percent year-on-year in 2024, among which orders from overseas local users increased more than 50 percent from a year earlier.

Tailor-made commodities are favored by consumers, especially those from overseas markets, as the orders from customized demands surged more than 200 percent on a yearly basis in 2024.