Alibaba's international arm claims its new AI translation tool surpasses Google and ChatGPT.

• Alibaba's international arm has launched an updated version of its AI-powered translation tool, which claims to be superior to Google, DeepL, and ChatGPT.
• The product is capable of functioning in 15 different languages, including Arabic, Chinese, Dutch, English, French, German, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, Turkish, and Ukrainian.
• The goal is to use the AI tool to benefit the merchants on the platform, as their success will directly impact the platform's own success, according to Kaifu Zhang, vice president of Alibaba International Digital Commerce Group and head of the business' artificial intelligence initiative, who spoke to CNBC.

The international arm of a Chinese e-commerce giant launched an updated version of its AI-powered translation tool on Wednesday, claiming it surpasses the products offered by Google, DeepL, and ChatGPT.

According to an assessment by translation benchmark framework Flores, Alibaba International's new model, Marco MT, has been evaluated.

Alibaba's international unit has updated its AI translation product, which currently has 500,000 merchant users, to enable sellers from one country to create product pages in the language of their target market.

In an interview with CNBC on Tuesday, Kaifu Zhang, vice president of Alibaba International Digital Commerce Group and head of the business' artificial intelligence initiative, discussed the importance of AI in the industry.

The goal is to use this AI tool to benefit the merchants' profitability, as their success will directly impact the platform's success, he stated.

Artificial intelligence applications, such as OpenAI's ChatGPT, are powered by large language models that can translate text and generate humanlike responses to user prompts.

Alibaba's translation tool utilizes its own model, Qwen, to provide support for 15 languages, including Arabic, Chinese, Dutch, English, French, German, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, Turkish, and Ukrainian.

Zhang anticipates substantial demand for the tool in Europe and the Americas, while emerging markets will also be a significant area of use.

Developing countries make up roughly half of the top 20 active users of AI tools on Alibaba.com, according to Zhang.

Recently, Chinese companies have been expanding their businesses overseas, particularly in the e-commerce sector. Companies such as Temu, Shein, and ByteDance's TikTok have entered the global market. Additionally, many Chinese merchants have started selling on platforms like Amazon and eBay.

Contextual clues

Alibaba's AI translation tool, launched last fall, has been used by merchants for over 100 million product listings. The pricing model is similar to other AI-based services, where merchants pay based on the amount of translated text.

Zhang refused to reveal the cost of the updated version. He stated that it was part of some service packages for merchants seeking exposure to international users.

He believes that contextual translation increases the likelihood of consumers purchasing products. He gave an example of how a literal translation of a colloquial Chinese description for a slipper would have put off English-speaking consumers.

Zhang stated that the revised translation engine will enhance the Double 11 shopping festival experience for consumers by providing more accurate expression.

The international business of Alibaba encompasses platforms such as AliExpress and Lazada, primarily targeting Southeast Asia. In the quarter ended June, the international unit reported a 32% increase in sales to $4.03 billion compared to the same period last year.

Alibaba's main e-commerce business, Taobao and Tmall, has experienced a 1% year-on-year drop in sales to $15.6 billion, with a focus on the Chinese market.

The Taobao app, which is already popular with consumers in Singapore, launched an AI-powered English version in September for users in the country.

Alibaba's international revenue growth slowed slightly to 29% year-on-year in the quarter ended September, while operating losses narrowed, according to a report by Nomura analysts. However, Alibaba has not yet announced the release date for its quarterly earnings.