Alibaba says its AI spending in e-commerce is already breaking even

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Alibaba says its AI spending in e-commerce is already paying back investment. The company has rolled out AI tools for search personalization, ad performance, and virtual clothing try-ons, and it says early testing has produced a 12% lift in return on advertising spend. Alibaba also plans to keep increasing AI and cloud infrastructure spending, including a 380 billion yuan commitment over three years. The timing matters because the company expects AI to materially improve Singles Day sales performance and overall gross merchandise volume.

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