How Alibaba.com Plans to Reshape B2B Trade with AI Mode

Alibaba.com has introduced AI Mode, a feature that brings agentic AI capabilities directly into its business-to-business e-commerce platform.

The launch comes as the company reports European order volume has increased 57% year-on-year, while active suppliers worldwide have grown 50% compared to the same period in 2024. The platform, which operates in more than 200 countries and regions, serves buyers and suppliers in the US$30tn B2B market.

Alibaba says AI Mode will roll out in December 2025 and aims to change how businesses discover, evaluate and engage with suppliers through the platform. The feature uses natural language processing to interpret queries, analyse technical specifications and compare suppliers across pricing, logistics, certifications and production capabilities.

Alibaba.com integrates agentic AI across user journey

The company positions the launch as a response to market trends showing 90% of B2B buyers now use AI tools in sourcing and evaluation, according to research from Forrester. McKinsey data indicates AI drives more than half of all online searches, suggesting demand for intelligent insights has reached what the company calls an inflection point.

Kuo Zhang, President of Alibaba.com, says: “AI is no longer a supplementary tool at Alibaba.com – it’s evolving into the operating system of our platform.”

The feature builds on the company’s September 2025 announcement to add deep search, powered by large language models, to its traditional keyword-based search functionality. AI Mode connects with existing Alibaba.com services including secure payment, Trade Assurance and after-sales support, with the stated aim of enabling an automated, end-to-end trade experience.

Once operational, the system will deliver tailored recommendations within seconds by processing user requirements against supplier capabilities across multiple parameters. The integration represents what the company characterises as a shift from AI as a supplementary tool to AI as the core operating framework of the platform.

Accio search engine powers AI Mode discovery

AI Mode uses Accio, which Alibaba.com describes as the world’s first AI-powered B2B search engine. Launched in November 2024, Accio has been enhanced with multimodal understanding capabilities that extract meaning from unstructured inputs including product sketches, engineering blueprints, documents, certificates and factory capabilities.

This technology addresses what the company terms the “hidden product shelf”: specialised, custom or regionally focused suppliers whose expertise remains invisible under traditional keyword-driven discovery models. These suppliers often include small and medium-sized enterprises with specific manufacturing capabilities that don’t surface in conventional search results.

By surfacing these suppliers, the system aims to support SME product innovation and improve supply chain resilience. The multimodal approach allows buyers to upload visual or technical documentation and receive matches based on manufacturing capabilities rather than relying solely on text-based keyword searches.

The enhanced search functionality processes inputs that would typically require manual interpretation and supplier outreach, condensing what might take weeks of research into a process the company says takes seconds. This capability targets the gap between buyer requirements and supplier discovery in markets where specialisation and customisation drive value.

European SMEs drive platform growth through AI adoption

Alibaba.com research carried out by Censuswide shows 90% of European SMEs cite product innovation as critical to their growth strategy, whilst 62% express confidence in using AI tools to drive innovation in design, sourcing and production.

European businesses face tightening sustainability regulations, supply chain diversification requirements and increasing competition, factors that have pushed companies towards more transparent sourcing solutions. AI Mode has been designed for this environment, offering capabilities to navigate compliance, identify sustainable partners and bring customised products to market without expanding internal teams.