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The B2B e-commerce platform’s new AI Sourcing Agent taps into a wealth of resources to serve as an active guide for business decision-makers.

As artificial intelligence (AI) continues to prove its value across sectors, companies around the world are increasingly exploring their options to implement the technology or launch their own AI product. But how can they differentiate their AI offerings from competitors? Looking at Alibaba.com’s new AI Sourcing Agent—unveiled by the B2B e-commerce platform at its flagship CoCreate event — can provide some key insights.

Tapping into the right resources
An AI product is only as good as the information that it has access to, whether that be databases, previously published research and content, or publicly accessible information from organizations and other entities. AI relies on access to these types of reference materials in order to develop accurate responses, summaries or other outputs in response to user queries.

Recognizing this key characteristic of the technology, Alibaba.com built its sourcing tool by leveraging more than one billion existing product listings and 25 years of industry knowledge. These resources allow the AI tool to weigh a variety of factors and sourcing options in order to provide platform users with the appropriate information, answers or recommendations for their sourcing needs. Beyond the listings and industry knowledge, Alibaba.com’s AI Sourcing Agent is also able to tap into user-generated content (UGC), such as customer reviews on products, providing key insights for business decision-makers from people who have already purchased a product or service.

To ensure that all information provided by the AI Sourcing Agent is useful, Alibaba.com has tapped into Retrieval-Augmented Generation (RAG) features. These features filter search results to information only from sources deemed reliable by the AI tool according to a knowledge base. If the AI tool is unsure about something, it is programmed to acknowledge that rather than provide unsubstantiated guesses. This ensures that decision-makers receive accurate, actionable information rather than anything that might be readily available.

An active guide, not a passive search engine
Traditional search engines typically only allow users to inquire about a word, phrase or singular question. These searches often return a plethora of results, some more relevant than others. After searching, users have to sift through seemingly endless amounts of information, comparing findings and relying on their own evaluations to arrive at decisions.

Alibaba.com’s new AI search tool does not conduct a passive search like traditional search engines, but rather acts as an active guide. The conversational nature of the tool helps to narrow down the information that decision-makers can use to further refine their searches until they are satisfied with the results in a way that is similar to a game of “20 Questions.”

The AI tool can then synthesize the information into a request for quotation (RFQ) that can then be issued to potential sourcing partners, simplifying the typically complex and time-consuming RFQ process for business owners. When all is said and done, leveraging Alibaba.com’s AI Sourcing Agent to conduct market research, identify and connect with potential sourcing partners can save businesses一and small- and medium-sized enterprises (SMEs) in particular一significant resources as they look to find the right sourcing partner and perfect their supply chain operations.

Differentiating a product to meet users where they are
Built with the needs of SMEs in mind, the AI Sourcing Agent illustrates how a company can use AI to differentiate themselves in the market. By leveraging AI’s ability to synthesize information, Alibaba.com is able to go beyond just providing reference materials. Instead, SMEs gain meaningful industry insights, accurate search results for global suppliers and product options, and intelligent comparisons of suppliers and quotations. As global trade continues to grow, tools like this not only help SMEs make well-informed decisions, but increase sourcing efficiency.

By simplifying sourcing processes and saving businesses time and resources, AI can create impactful change for both SMEs who are already in or just entering the global sourcing landscape. Tools like this Sourcing Agent can revolutionize the cross-border trade game around the world so that businesses of all sizes can thrive.