NANJING, CHINA - NOVEMBER 25: Aerial view of Alibaba Jiangsu Headquarters at night on November 25, 2025 in Nanjing, Jiangsu Province of China. (Photo by Fang Dongxu/VCG via Getty Images)
China's technology giants are entering a new phase of the artificial intelligence race called 'agentic commerce,' as firms such as Alibaba and ByteDance race to turn chatbots into full-service shopping and payment tools.
Alibaba last week updated its Qwen AI chatbot, allowing users to complete transactions directly within the interface, including ordering food and booking air tickets.
The upgrade connects Qwen to Alibaba's broader e-commerce ecosystem, allowing users to compare tailored product recommendations from platforms such as Taobao or its travel site Fliggy, before finally completing payments through Alipay, all without leaving the chatbot.
Previously, Qwen could make recommendations based on user-generated prompts, but users still had to manually navigate multiple platforms to make purchases.
The update reflects a broader shift among some global artificial intelligence firms from a focus on foundational AI models to "agentic AI", which performs tasks on behalf of users with limited supervision.
"The agentic transformation of commercial services enables the maximal integration of user services [and] enhances user stickiness," Shaochen Wang, a research analyst at Counterpoint Research, referring to stronger long-term user engagement.
That allows companies to build a sustainable competitive advantage, often called a business moat, which helps protect profits from competitors, he added.
While commercial applications for agentic AI are expected to range from autonomous driving to cybersecurity, e-commerce is emerging as one of its earliest and most pervasive use cases, with payment and tech giants in the U.S. also rolling out their first iterations in recent months.
Within China, Alibaba is well-positioned to be a pioneer in agentic commerce due to its advanced large language model capabilities and its extensive e-commerce network covering clothing, food, housing, and transportation, Wang said.