In-Depth Analysis of the Strategic Value of Alibaba's AI Shopping Features

Based on the above data, I will provide you with a systematic and comprehensive analysis report.

On January 15, 2026, Alibaba announced a major AI strategy upgrade, with its Qwen App fully integrated into Alibaba’s ecosystem and launching over 400 functional services, achieving the world’s first end-to-end AI shopping features such as food ordering and shopping [1][2]. The launch of this feature marks a major breakthrough in the AI e-commerce sector, allowing users to complete the full-link shopping experience from search, price comparison, decision-making to payment and delivery through a single conversational interface.

• Alibaba’s Hong Kong-listed shares rose for 4 consecutive days, with a cumulative increase of 12.53% [3]
• Southbound funds recorded net purchases for 4 consecutive days, totaling HK$4.385 billion
• U.S.-listed shares rose for 4 consecutive trading days, with positive investor sentiment

Qwen App’s AI shopping features have achieved several industry firsts:

1. End-to-End Closed Loop
   : Users only need to describe their needs via voice or text, and the AI automatically completes the entire process from search → price comparison → order placement → payment without switching apps [4]
2. In-Depth Ecosystem Integration
   : Seamlessly connects core businesses such as Taobao, Tmall, Taobao Instant Purchase, Alipay, Fliggy, and Amap [5]
3. Intelligent Recommendation Engine
   : Personalized product recommendations based on user historical behavior and preferences

It is worth noting that Google recently announced the development of AI shopping tools with partners such as Walmart, but has not yet officially launched them [1]. Alibaba’s commercial implementation ahead of its competitors gives it a significant first-mover advantage.

Qwen App’s monthly active users exceeded 100 million within just 2 months of its launch [6], a growth rate far exceeding industry expectations. The launch of AI shopping features is expected to further accelerate user growth:

• Reduced Usage Barriers
  : Natural language interaction replaces traditional search and navigation, making it more user-friendly for middle-aged and elderly users
• Increased Repurchase Rate
  : AI proactive pushes and intelligent repurchase features enhance user stickiness
• Scenario Expansion
  : High-frequency scenarios such as food delivery and instant retail drive daily active users

Based on industry research, AI shopping features are expected to drive GMV growth through the following paths:

AI Shopping Features → Improved User Experience → Increased Conversion Rate → GMV Growth
         → Increased Average Order Value → Higher Per-Transaction Revenue
         → Increased Repurchase Frequency → Higher Annual Consumption

AI shopping features will strengthen Alibaba’s revenue diversification strategy:

1. Core E-Commerce Revenue
   : Advertising revenue (precision targeting based on AI recommendations), commission revenue (driven by increased conversion rates)
2. Local Life Services Revenue
   : Revenue sharing from food delivery and instant delivery orders
3. Payment Handling Fees
   : Revenue sharing from transaction flows generated by Alipay’s AI payment
4. Cloud Services Revenue
   : Opening up AI capabilities to merchants, forming a B-end charging model

Based on the discounted cash flow (DCF) model, Alibaba’s current valuation has significant upside potential [0]:

• Valuation recovery driven by improved investor sentiment
• Sustained inflow of southbound funds indicating restored market confidence

• Incremental revenue generated from monetization of AI shopping features
• Improved profit margins driven by enhanced operational efficiency

• Moat effect after the establishment of the AI e-commerce ecosystem
• Growth space brought by international expansion

From a relative valuation perspective, Alibaba’s current share price is significantly discounted compared to the industry average. The median DCF valuation is 2.16 times the current price, and the successful implementation of AI shopping features will provide a catalyst for valuation recovery.

• ByteDance
  : Potential threat from Douyin E-Commerce + AI Search
• Tencent
  : Competition from WeChat Ecosystem + AI Assistant
• JD.com/Pinduoduo
  : Price competition and user acquisition

• AI Hallucination
  : Incorrect recommendations may affect user experience and merchant interests
• Privacy Compliance
  : User data usage must comply with regulatory requirements
• System Stability
  : Service reliability under high-concurrency scenarios

• Macroeconomy
  : Uncertainty in consumer demand
• Regulatory Policies
  : Anti-monopoly and data security regulations for platform economies

1. Significant First-Mover Advantage
   : As the world’s first platform to achieve end-to-end AI shopping, Alibaba has established a 6-12 month technological and ecosystem moat [1][4]

2. User Growth Validation
   : Qwen App’s monthly active users exceeding 100 million within 2 months demonstrates the market appeal of AI features [6]

3. Ecosystem Synergy
   : In-depth integration of core businesses such as Taobao, Tmall, Alipay, and Fliggy creates strong synergies

4. Sufficient Valuation Support
   : DCF model shows a 172% weighted upside potential from the current price [0]

5. Capital Support
   : Southbound funds recorded net purchases of HK$4.385 billion over 4 consecutive days, indicating institutional investors’ recognition of the AI strategy

Current technical indicators show that KDJ and RSI are in overbought territory [0], and the share price may face short-term adjustment pressure. It is recommended that investors accumulate positions on dips and hold for the medium to long term.

[1] TechNode - “Alibaba’s Qwen app links Taobao, Alipay in end-to-end AI shopping push” (https://technode.com/2026/01/16/alibabas-qwen-app-links-taobao-alipay-in-end-to-end-ai-shopping-push/)

[2] Digital Commerce 360 - “Alibaba expands Qwen chatbot with agentic AI” (https://www.digitalcommerce360.com/2026/01/15/alibaba-expands-qwen-chatbot-with-agentic-ai/)

[3] Yahoo Finance - “Alibaba Stock Extends Rally As China Tech Giant Makes AI Shopping Push” (https://finance.yahoo.com/m/4af0b0bf-f188-3a91-ba3b-eb9ad8fa38e4/alibaba-stock-extends-rally.html)

[4] PYMNTS - “Alibaba Adds Agentic and Payments Capabilities to Consumer AI App” (https://www.pymnts.com/artificial-intelligence-2/2026/alibaba-adds-agentic-and-payments-capabilities-to-consumer-ai-app/)

[5] Benzinga - “Alibaba Integrates Qwen AI With Alipay, Taobao To Create Ultimate Super-Assistant” (https://www.benzinga.com/markets/tech/26/01/49930473/alibaba-integrates-qwen-ai-with-alipay-taobao-to-create-ultimate-super-assistant)

[6] GuruFocus - “Alibaba (BABA) AI Innovations Set to Boost E-commerce and Cloud Revenue Growth” (https://www.gurufocus.com/news/4114711/alibaba-baba-ai-innovations-set-to-boost-ecommerce-and-cloud-revenue-growth)

[0] Jinling AI Financial Database (Company Profile, Financial Analysis, DCF Valuation, Technical Analysis)