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Alibaba’s international arm has unveiled a new, AI-powered translation tool, Marco MT, which it claims is superior to products offered by Google, DeepL, and ChatGPT. The updated tool is designed to help merchants expand their global reach by providing more contextually accurate translations across multiple languages, enhancing the overall e-commerce experience.
The Marco MT model was benchmarked using the Flores translation framework, and Alibaba has stated that its performance outshines competitors. The tool, launched as part of an update to Alibaba’s AI translation product from last year, is already used by 500,000 merchants worldwide.
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Contextual Translation for Global Markets
Unlike traditional translation tools, Alibaba’s Marco MT is based on large language models (LLMs) similar to those powering OpenAI’s ChatGPT. These models use massive datasets to deliver humanlike responses and provide context-aware translations, taking into account cultural nuances and industry-specific terminology.
Kaifu Zhang, vice president of Alibaba International Digital Commerce Group, explained that this upgrade is part of the company’s strategy to support merchants by improving their product listings for global audiences. “The idea is that we want this AI tool to help the bottom line of the merchants because if the merchants are doing well, the platform will be doing well,” Zhang told CNBC.
The translation tool currently supports 15 languages, including English, Chinese, Arabic, French, German, Japanese, Spanish, and Ukrainian, and Zhang expects substantial demand for it from Europe and the Americas.
Growing Role in Global E-Commerce
Alibaba’s move to enhance its AI translation tool reflects the growing trend of Chinese e-commerce companies seeking to expand internationally. Companies like PDD Holdings’ Temu, Shein, and ByteDance’s TikTok are increasingly entering global markets, and many Chinese merchants already sell on platforms like Amazon.
Since the original AI translation tool’s release last year, merchants have used it for over 100 million product listings. The tool is particularly popular in developing countries, which account for about half of the top 20 active users of Alibaba’s AI tool on Alibaba.com, Zhang noted.
Improved Shopping Experience for Global Events
Zhang emphasized that Marco MT’s contextual capabilities would improve the shopping experience during Double 11, Alibaba’s massive annual shopping festival on November 11. By providing authentic translations, the tool can enhance product descriptions, increasing the likelihood of purchases from international consumers.
For example, Zhang explained how a literal translation of a colloquial Chinese term for a slipper might not resonate with English-speaking consumers. However, the improved AI tool can deliver nuanced translations that align with local expectations, leading to a better user experience.
Integration with Alibaba’s Global Platforms
Alibaba’s international business, which includes platforms like AliExpress and Lazada, has been growing rapidly. In the quarter ending in June 2024, the company reported 32% sales growth, generating $4.03 billion in revenue. This stands in contrast to the 1% decline in sales for Alibaba’s domestic platforms, Taobao and Tmall, which brought in $15.6 billion during the same period.
Alibaba continues to focus on expanding its international presence. For instance, in Singapore, Taobao recently launched an AI-powered English version of its app to cater to local consumers.
Looking Ahead
As Alibaba continues to develop its AI capabilities, it aims to further enhance global e-commerce by offering more accurate, context-aware translations that help businesses and consumers connect more effectively across languages and cultures. This strategy aligns with Alibaba’s broader goal of expanding its international reach, particularly in markets with rising demand for customized and localized e-commerce experiences.
With Marco MT and its other AI innovations, Alibaba is positioning itself as a leader in the growing AI translation and global e-commerce sectors, while also contributing to the company’s long-term success and global expansion.