Alibaba.com announced the launch of its new agentic AI capability, "AI Mode," on November 14, 2025. The system uses advanced reasoning and planning to interpret natural‑language queries, analyze technical specifications, and compare suppliers on pricing, logistics, certifications, and production capacity, delivering tailored recommendations in seconds.
AI Mode is fully integrated with Alibaba.com’s existing services, including secure payment, Trade Assurance, and after‑sales support. The platform’s AI engine can surface the so‑called "hidden product shelf"—specialized suppliers that are often overlooked by keyword searches—thereby expanding sourcing options for merchants and improving procurement efficiency.
The announcement comes amid strong momentum for the platform: European order volume surged 57% year‑on‑year to 1.2 million orders, and active suppliers worldwide grew 50% to 3.8 million, up from 2.5 million the previous year. These figures illustrate the scale of Alibaba.com’s user base and the potential impact of AI‑driven sourcing on transaction volume.
Competitive pressure is intense, with Amazon Business, JD.com, and Pinduoduo all offering B2B marketplaces. By embedding agentic AI, Alibaba.com aims to differentiate itself through faster, more accurate supplier matching and to capture market share from rivals that rely on traditional search algorithms.
The monetization model for AI Mode is subscription‑based, with a projected fee of $20 per month or $99 per year. This structure is expected to generate a new, high‑margin revenue stream that complements the company’s existing transaction‑fee and advertising businesses.
Kuo Zhang, president of Alibaba.com, said the platform’s AI is “evolving into the operating system of our platform,” underscoring the strategic shift toward AI‑centric operations. CEO Eddie Wu highlighted the broader investment of RMB 380 billion (US$53 billion) over three years in AI and cloud infrastructure, positioning Alibaba.com to capitalize on the $30 trillion global B2B market and the growing demand for intelligent sourcing solutions.
The launch of AI Mode signals Alibaba.com’s commitment to unlocking hidden supplier networks, improving merchant efficiency, and creating a new revenue engine that could drive future growth in a highly competitive marketplace.
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