Alibaba New CEO Highlighs AI and Users in Business Revamp as Stepping Up

Consumer Staples Author: Yiru Qian Sep 13, 2023 07:31 PM (GMT+8)

Alibaba opens Tongyi Qianwen model to public as new CEO embraces AI


On September 12th, Alibaba Group's (9988:HK; BABA:NYSE) newly appointed CEO, Eddie Yongming Wu , released an internal letter announcing the establishment of two major strategic priorities, that is "Customer First" and "AI-Driven." This outlines Alibaba's strategic focus and action plan for the future.

The move comes as part of a leadership transition at Alibaba, which had already said that Zhang would cede the position of group chair to co-founder Joseph Tsai and would hand over the role of group chief executive to Eddie Yongming Wu.

Eddie Wu further emphasized that Alibaba will reshape its business strategy priorities in alignment with these two key strategies.

Based on these priorities, Alibaba will increase strategic investments in three categories of business: first, technology-driven internet platform business; second, AI-driven technology business; and third, globalized commercial networks.

The new CEO believes that the traditional internet model has reached a stage of intense competition with significant homogenization, while new technologies represented by AI are becoming a new driving force for global business development. Alibaba must undergo self-transformation to find the key to unlocking the future, to uphold its original mission of solving societal issues, and to fulfill its mission of serving small and medium-sized enterprises, all while adhering to the vision of being a socially beneficial company.

In the internal letter, Wu Yongming also explicitly set goals and requirements for rejuvenating the management team. Within four years, the goal is to have individuals from the post-1985 and post-1990 generations serve as the main leaders within the management team, creating mechanisms and a cultural environment that empowers more young Alibaba employees to become the core strength of the company.