Alibaba.com’s AI Empowers SMBs in Global Trade

Small and medium businesses (SMBs) are the backbone of the global economy, making up almost 90–95% of all businesses and driving 60% of worldwide employment, according to World Trade Organization data. Yet, these firms face entrenched challenges—high operational workloads, complex trade processes, and limited transparency—making participation in global commerce especially arduous.

Recent crises, from supply chain disruptions to economic instability, have only amplified these hurdles. The World Economic Forum underlines SMBs' struggles with tight access to capital, ever-evolving regulatory requirements, and a persistent digital infrastructure gap—all factors that dampen their capacity to navigate international trade.

While large enterprises have made headlines for rapid AI adoption, SMBs often remain on the sidelines. A majority cite unclear business benefits, security worries, prohibitive costs, and skills shortages as key obstacles. According to recent SMB surveys, 48% of respondents do not see immediate relevance for AI to their operations, while others remain wary of privacy, costs, and the technical expertise required.

In an insightful exchange following this year’s CoCreate 2025 event in Las Vegas, Kuo Zhang, President of Alibaba.com, discussed with Emerj’s Matthew DeMello how SMBs—and not just big corporations—can seize the benefits of 'agentic AI.' Zhang notes that agentic AI is more than a smart assistant; it is an autonomous system capable of tackling end-to-end business processes that previously required large teams and significant time investments.

Revolutionizing Sourcing and Procurement with Agentic AI

Zhang introduces Alibaba’s agentic AI platform, Accio. Launched in the previous year, Accio is already used by more than two million SMBs worldwide. Its core innovation lies in automating traditionally burdensome tasks, such as sourcing, compliance, and supplier management—compressing what once took months into mere hours.

He illustrates with the example of a regional Latin American sports event that had to procure vast quantities of goods. What previously required a four-month gauntlet of supplier identification, compliance checks, and endless coordination was transformed into a few hours by Accio’s AI. SMB users simply upload product lists and requirements; the system analyzes needs, checks trade regulations, matches with suitable suppliers from Alibaba’s network, and initiates outreach—delivering end-to-end solutions via a browser-based interface.

A solo entrepreneur designing specialized clothing for children with ADHD is another emblematic case. Accio automates market research, design, specification writing, and supplier engagement, distilling weeks’ worth of operational work into a seamless, AI-driven workflow.

The experience is intentionally turnkey—requiring no installation or setup. Kuo emphasizes that the goal is to hand SMBs powerful AI agents that remove technological and operational complexity, so users can focus on business growth instead of manual processes.

Problem Selection: The Foundation of Practical AI

Kuo Zhang stresses that true AI transformation for SMBs begins not with technology, but with problem selection. Many tech initiatives falter because they target only superficial issues. Zhang views the complexity of global trade—a $30 trillion market—as a worthwhile and urgent problem. Drawing on more than two decades of Alibaba’s experience, the company can home in on pain points shared among millions of buyers and suppliers.

Once the problem is well defined, the next step is capitalizing on Alibaba’s large datasets, operational expertise, and deep domain knowledge. With billions of products, hundreds of millions of buyers, and a constant stream of daily transactions, the agentic AI can 'learn' effective solutions naturally from real-world patterns.

The third and final layer involves deploying advanced language models—some among the largest in the world—augmented with domain-specific intelligence. Yet, as Zhang notes, the success of these models still depends on having the right context and an evaluation framework rooted in practical business needs.

Building AI-Native Applications for Fast Innovation

Internally, Alibaba.com is reshaping its workflow with a three-layered approach to AI transformation:

1. AI-native Applications: By building entirely new products such as Accio outside the limits of existing systems, Alibaba’s teams can experiment freely, challenge old assumptions, and iterate at speed without constraints.
2. Platform Integration: Core Alibaba.com functions—including search, seller tools, and advertising—are being re-engineered with AI at their core. Zhang shares that as much as 80% of routine operations are now handled by automated AI systems, contributing to 10% of Alibaba.com’s annual revenue.
3. Cultural Shift: Every employee at Alibaba.com, from developers to finance and compliance, is now tasked with explicit AI objectives. This widespread adoption ensures that AI permeates every aspect of the organization, nurturing an ongoing culture of innovation and process improvement.

Outlook and European Relevance

While the article spotlights Alibaba.com’s global reach and Asian roots, the themes resonate strongly in Europe. European SMBs are equally challenged by trade barriers, regulatory burdens, and digital underdevelopment. Policymakers across the continent are striving to promote AI adoption among smaller firms—the kinds of operational improvements described here could be replicable for European businesses seeking to remain competitive on the world stage.

For European leaders in technology and retail, Alibaba.com’s achievements stand as both a blueprint and a challenge: to harness AI not just for efficiency but for reshaping the very structure of SMB participation in global commerce.

Read the full article at Emerj.com.