Alibaba CEO Warns of AI Displacement

Alibaba’s new CEO, Eddie Wu, has emphasized the importance of being “user first” and “AI-driven” in order to stay competitive in the artificial intelligence era. Wu expressed the need for Alibaba to adapt and evolve quickly in a letter to employees. As the world progresses, Alibaba must also evolve faster to keep up with the changes in the industry. Wu, a close confidant of Alibaba founder Jack Ma, took over as CEO on September 10, following the resignation of Daniel Zhang. Zhang now focuses on leading the company’s cloud computing business.

Alibaba’s strategic priorities under Wu’s leadership will be centered around being “user first” and “AI-driven.” The company plans to reinforce its strategic investments in three areas. The first is “technology-driven internet platforms,” where Alibaba aims to establish open and collaborative relationships, even with competitors. This approach is a departure from Alibaba’s previous strategy of keeping users within its ecosystem of products.

Investing in artificial intelligence is another key focus for Alibaba. The company’s cloud unit has positioned itself as an AI leader in China with the goal of revitalizing its growth. Wu stressed the importance of transforming Alibaba’s use cases into applications for AI technology to drive breakthrough user experiences and business models through innovation. Failure to keep up with the changes of the AI era would risk displacement for Alibaba in the market.

Additionally, Wu mentioned the need for Alibaba to continue investing in globalization, indicating the importance of expanding the company’s presence on a global scale. As part of Alibaba’s long-term plans, younger talent born after 1985 and in the 1990s will be promoted within the next four years to form the core of the business management teams.

Wu’s vision for Alibaba revolves around being user-centric and leveraging AI technology to drive innovation across the company. By staying ahead of the curve in the AI era, Alibaba aims to maintain its position as a leading player in the tech industry.