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Core Viewpoint - The article discusses the rapid evolution of AI in the e-commerce sector, particularly focusing on Alibaba's Taobao platform, highlighting the integration of AI tools to enhance user experience and operational efficiency during the 2024 Double Eleven shopping festival [4][11][30]. Group 1: AI Integration in E-commerce - Taobao's AI tools, such as "Xiao Wan Assistant," have significantly improved sales performance, with some brands reporting over 35% increase in orders after implementing AI-driven strategies [4][11]. - The establishment of the "Search and Promotion Intelligent Product Division" under the leadership of Zhang Kaifu marks a strategic shift towards AI-driven enhancements in Taobao's search and recommendation systems [7][12]. - The urgency for improving user experience in search functionalities was driven by customer feedback on social media, indicating a need for immediate action to address dissatisfaction [8][10]. Group 2: Challenges and Strategic Focus - The search experience issues stem from 22 years of accumulated complexities in Taobao's search engine, necessitating a comprehensive upgrade involving business, technology, and supply chain collaboration [9][19]. - The team identified three key focus areas for AI evolution by 2025: upgrading search and promotion systems, enhancing efficiency for merchants, and launching new AI-driven shopping products for consumers [16][21]. - The transition to AI-driven systems requires a complete overhaul of the existing product database to ensure compatibility with AI technologies, which is a significant undertaking [20][21]. Group 3: Organizational Changes and Talent Development - The internal structure has shifted to support AI initiatives, with a focus on creating flexible project teams that can innovate without being constrained by traditional metrics [24][25]. - A significant recruitment drive has targeted young talent from local universities, emphasizing the importance of nurturing creativity and technical skills in the AI domain [26][27]. - The company has implemented a systematic training approach for new hires, ensuring they are equipped with the necessary skills to contribute effectively to AI projects [27]. Group 4: Performance Metrics and Future Outlook - As of November 8, 2024, the AI-driven search and promotion capabilities have led to a 12% increase in advertising ROI and a 20% improvement in search relevance under complex queries [29][30]. - Despite initial successes, challenges remain in educating traditional merchants about AI tools, indicating a need for ongoing support and training [31]. - The company views AI as a long-term strategic focus, with plans for increased investment and further development of AI capabilities in the coming years [32][33].