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The new CEO of Alibaba embraces AI and desires a youthful management team.

(Qnnflash) — According to the new CEO of Alibaba Group, the company intends to adopt artificial intelligence (AI) and facilitate the advancement of younger individuals into senior management positions. This strategic move is part of the e-commerce and cloud giant’s most extensive reorganization endeavor to date.

The dynamic nature of the current era necessitates that Alibaba adapt accordingly. Eddie Wu became the chief executive on Sunday, according to a memo that staff members noticed.

Wu succeeded Daniel Zhang as the fourth Chief Executive Officer of Alibaba (BABA), marking a significant transition in the company’s 24-year trajectory. Additionally, he assumed the role of chief of the cloud division after Zhang’s unexpected departure from the aforementioned unit.

In the memo issued on Tuesday, Wu delineated his company’s long-term objectives, which entail the pursuit of novel avenues for expansion in the face of a difficult economic climate and escalating rivalry from adversaries.

According to the speaker, Alibaba’s primary strategic priorities in the future will revolve around prioritizing the needs of users and leveraging artificial intelligence (AI) technology. The organization intends to realign its operational activities based on these two fundamental strategies and restructure its business priorities.

According to the speaker, the primary catalyst for change in the coming decade will be the disruptive effects of artificial intelligence (AI) in several industries. Failure to adapt to the evolving landscape of the AI era may result in displacement.

The disclosure of the organization’s strategic approach coincides with its most significant reorganization endeavor to date.

In accordance with a strategic initiative disclosed in March, Alibaba intends to undergo a division into six distinct entities encompassing cloud computing, electronic commerce, logistics, media, and entertainment. Each unit will be under the supervision of an individual Chief Executive Officer (CEO) and a board of directors. Additionally, the majority of these units will have the opportunity to pursue independent listings or engage in fundraising activities.

The commercial landscape has also grown more challenging for one of China’s most esteemed internet enterprises.

The Chinese economy is experiencing a deceleration, as consumers exhibit restraint in their expenditure patterns. E-commerce enterprises such as Alibaba are facing mounting pressure to augment their offerings of reduced merchandise in order to attract and retain customers.

The company is currently encountering increased rivalry from prominent online competitors such as Pinduoduo (PDD) and Douyin, a short video application owned by Bytedance that possesses a robust live shopping segment.

According to Wu, Alibaba has experienced significant expansion over the course of the last two decades by effectively capitalizing on the prevailing wave of internet technology.

However, it is imperative for it to adapt and evolve in order to discover the crucial elements for future success, particularly in light of the growing uniformity of old internet models and the emergence of artificial intelligence as the primary driver of global corporate expansion.

In addition, Alibaba intends to rejuvenate its executive team by appointing younger individuals. The speaker expressed the intention to actively encourage individuals born after 1985 to constitute the primary composition of the organization’s business management team within a timeframe of four years.

According to the speaker, Alibaba intends to strengthen its strategic investments in three key domains: technology-oriented internet platforms, artificial intelligence-driven technological enterprises, and global commerce networks.

Moreover, the organization would also strive to establish “open and collaborative relationships,” even extending to organizations that it has traditionally regarded as competitors.

In light of ChatGPT’s significant impact in recent years, well-known technology companies like Google (GOOG), Amazon (AMZN), and Microsoft (MSFT) have refocused their attention on artificial intelligence (AI).

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