Joe Tsai: E-commerce is the Richest AI Application Scenario
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According to media reports, Joe Tsai, Chairman of Alibaba Group, stated that Alibaba will focus on e-commerce and cloud computing. E-commerce is the richest AI application scenario, and Alibaba is increasing investment in related technologies, such as improving user purchase frequency and order volume through more precise supply-demand matching.
Joe Tsai reiterated that Alibaba will focus on e-commerce and cloud computing. He mentioned that e-commerce currently accounts for about 30% of China's total retail sales, but this penetration rate is expected to rise to 40% or even higher in the next five years, which will be the long-term driver of Alibaba's e-commerce business. "This is a long-term growth industry, and we are very excited about it."
Regarding cloud computing, Joe Tsai believes that China's economy is in the process of digitalization, creating enormous demand for cloud computing. "China's GDP accounts for about 17% of the global total, while its digitalization scale is equivalent to 30% of the world's. This is a very, very good market for developing cloud computing business." Joe Tsai also revealed that e-commerce is the richest application scenario for AI, and Alibaba is increasing its investment in related technologies. For example, efforts are being made to improve user purchase frequency and order volume through more precise supply-demand matching. In the December quarter, the Taobao and Tmall platforms successfully achieved double-digit growth in order volume.
Joe Tsai stated that Chinese manufacturing offers high quality at reasonable prices, providing excellent consumer value, and Alibaba will observe and consider its next steps. He also emphasized that the United States is only part of the world, and there are other markets to participate in. 'Our e-commerce platforms like AliExpress and Trendyol have achieved great success in other global markets, and we will continue to execute our strategies in these regions.' Regarding Jack Ma and Joe Tsai becoming Alibaba's largest individual shareholders, Joe Tsai stated that when company founders become significant shareholders, it demonstrates confidence in the company, which is a very important signal.
As the chairman, Joe Tsai believes the most crucial aspect is having a strong management team in place to inject new vitality into management and instill fresh confidence among employees.