Alibaba Shifts From Chatbots to 'Agentic AI' With Qwen Integration
Alibaba integrates Taobao, Alipay, and Fliggy into Qwen AI, shifting from chatbots to task-executing 'agentic AI' for 100M users amid fierce competition from ByteDance.
Alibaba Group Holding integrated its major services, including Taobao, Alipay, Fliggy travel, and Amap, into its Qwen AI app on January 15, enabling 100 million users in China to shop, book travel, and make payments through a single AI-powered interface.
Shift From Chatbots to Action-Oriented AI
The integration transforms Qwen from a conversational AI tool into what Alibaba calls "agentic AI," where artificial intelligence performs actual tasks rather than simply providing information. Users can now complete purchases on Taobao with payment processing, order food delivery, and confirm hotel reservations without switching between apps.
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Launched in November 2024, Qwen experienced 149% growth in monthly active users that month, making it the world's fastest-growing AI app. An invite-only "task assistant" feature handles complex multi-step actions like making restaurant reservations or building web applications.
"AI is evolving from intelligence to agency," said Wu Jia, Alibaba vice president. "What we are launching today represents a shift from models that understand to systems that act, deeply connected to real-world services."
Executives demonstrated Qwen's capabilities in Hangzhou by ordering bubble tea through AI-mediated conversations with in-app Taobao payments, though early tests revealed limitations in direct product linking.
Intense Competition in China's AI Market
Alibaba faces significant domestic competition from ByteDance's Doubao, which had approximately 172 million monthly active users as of September 2025, according to QuestMobile. Tencent is also competing aggressively in China's crowded AI application market.
To maintain competitiveness, Alibaba CEO Eddie Wu committed more than $53 billion to infrastructure and AI development, with potential for additional investment over time. The company has pursued an open-source strategy for Qwen's underlying technology to accelerate adoption and counter rivals.
The market has responded positively to Alibaba's AI strategy. The company's shares more than doubled since early 2025, signaling investor confidence despite broader concerns about AI monetization and return on massive data center investments.
Implications for Asian Commerce Ecosystems
Alibaba's move reflects a broader regional trend toward AI-driven consolidation. Companies with existing "super apps" like Alibaba and Tencent are considered well-positioned for the agentic AI era, where users expect seamless task completion across multiple services.
The integration changes how consumers discover and purchase products, with AI agents potentially mediating brand visibility and purchase decisions. Product recommendations become embedded in conversational dialogues rather than traditional search results and display advertising, favoring brands within Alibaba's ecosystem.
Southeast Asia's AgentCon 2025 events in Singapore, Ho Chi Minh City, and Cebu highlight growing regional investment in multi-agent systems and AI-driven commerce platforms.
Alibaba plans to gradually incorporate additional services, including streaming and meal delivery platforms, under the Qwen umbrella as it continues building its AI super app strategy.
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