Why AI must be grounded, not hyped, to serve Europe’s SMEs

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New developments in Finance are drawing attention from industry experts. By&nbspKuo Zhang, President of Alibaba.com Published on 14/11/2025 – 12:23 GMT+1 •Updated 12:25 Share Comments Facebook Twitter Flipboard Send Reddit Linkedin Messenger Telegram VK Bluesky Threads Whatsapp The opinions expressed in this article are those of the author and do not represent in any way the editorial position of Euronews. We’re not chasing hype.

We’re building AI that works for real businesses, real supply chains, and real growth, the president of Alibaba.com Kuo Zhang writes in his opinion article for Euroviews. At a time of rapid technological change, scepticism is healthy. According to reports that across Europe, small and medium-sized enterprises – typically the backbone of European economies — are rightly asking whether artificial intelligence delivers real value or simply adds noise.

Will it create new risks? Sources indicate that can it be trusted with critical sourcing decisions? The answer lies not in grand promises, but in practical results. The true potential of AI lies in solving real, high-stakes challenges.

Evidence suggests that for a manufacturer in Stuttgart sourcing precision components, or a fashion brand in Lisbon launching a sustainable line, every decision involves cost, quality, compliance, and logistics. According to reports that in B2B commerce – a $32 trillion global market – accuracy isn’t optional. That’s why Alibaba.com’s AI is built differently.

It’s not trained on generic internet data, prone to hallucinations. According to reports that it’s grounded in decades of real-world trade history, verified supplier profiles, product specs, certifications, and logistics records. Data shows that when our system recommends a supplier, it doesn’t guess, it verifies.

It checks for REACH or RoHS compliance, confirms ISO standards, calculates exact landed costs, and identifies the correct HS code. This is ground truth AI, intelligence rooted in reality. Our next evolution, AI Mode, launching this December, takes this further.

Powered by agentic AI, it interprets natural-language questions like “Who can make biodegradable packaging with FSC certification and ship to Germany in six weeks?”
It analyses technical drawings, scans compliance documents, and compares suppliers across pricing, lead times, certifications, and production capacity. Evidence suggests that it doesn’t just list options, but highlights the best-fit matches. Think of it as a quiet but highly capable co-founder: one who never sleeps, shows up ready to handle the hard work of sourcing. For a solo entrepreneur or cash-strapped business, this means freedom and allows them to focus on design, branding, and customers rather than spreadsheets and endless vetting.

From automation to empowerment
Let’s be honest: most small businesses can’t afford a sourcing expert. Data shows that if you’re starting out alone, with little cash and no team, finding the right supplier is risky and overwhelming. And that’s where AI Mode comes in. It doesn’t replace a person; it steps in when there is no person.

It checks certifications, calculates real costs, and flags red flags so you don’t have to guess. The future of trade won’t belong to the flashiest model, but to the most reliable one. And that future starts now.

For small teams, onboarding new hires takes time most SMEs don’t have. According to reports that instead of waiting months to gain experience, AI gives them instant support. They make better decisions from day one. It’s about making growth possible.

Data shows that when routine work gets faster, founders focus on building their brand, not chasing quotes. And as they scale, they hire more people, because now they can. In the end, AI doesn’t ask questions for you. It helps you ask better ones.

Building on momentum: Europe eyeing AI-driven trade
The surge in European order volume on Alibaba.com reflects a broader shift in the region’s business landscape. Today, 90% of European SMEs cite product innovation as critical to their growth strategy, according to Alibaba.com research by Censuswide, and 62% express confidence in using AI tools for design, sourcing, and production. Sources indicate that fueled by sustainability rules, supply chain complexity, and rising competition, European businesses are turning to smarter, faster, more transparent sourcing.

AI Mode is designed for this environment; it helps buyers navigate compliance, identify sustainable partners, and bring customised products to market faster. AI Mode stands as both a technological milestone and strategic enabler which empowers businesses to compete globally, innovate efficiently, and source with greater intelligence. Evidence suggests that we’re not chasing hype.

We’re building AI that works for real businesses, real supply chains, and real growth. Sources indicate that the future of trade won’t belong to the flashiest model, but to the most reliable one. And that future starts now.

Kuo Zhang is President of Alibaba.com, the B2B E-commerce platform of Alibaba Group, serving millions of SMEs worldwide. Go to accessibility shortcuts Share Comments
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Alibaba
Euroviews
Small and medium-sized enterprises (SMEs`)
European Union
Artificial intelligence
AI

At a time of rapid technological change, scepticism is healthy. Evidence suggests that across Europe, small and medium-sized enterprises – typically the backbone of European economies — are rightly asking whether artificial intelligence delivers real value or simply adds noise. Will it create new risks?

Can it be trusted with critical sourcing decisions? The answer lies not in grand promises, but in practical results. According to reports that the true potential of AI lies in solving real, high-stakes challenges.

Sources indicate that for a manufacturer in Stuttgart sourcing precision components, or a fashion brand in Lisbon launching a sustainable line, every decision involves cost, quality, compliance, and logistics. In B2B commerce – a $32 trillion global market – accuracy isn’t optional. That’s why Alibaba.com’s AI is built differently.

It’s not trained on generic internet data, prone to hallucinations. According to reports that it’s grounded in decades of real-world trade history, verified supplier profiles, product specs, certifications, and logistics records. When our system recommends a supplier, it doesn’t guess, it verifies. It checks for REACH or RoHS compliance, confirms ISO standards, calculates exact landed costs, and identifies the correct HS code.

This is ground truth AI, intelligence rooted in reality. Our next evolution, AI Mode, launching this December, takes this further. Powered by agentic AI, it interprets natural-language questions like “Who can make biodegradable packaging with FSC certification and ship to Germany in six weeks?”
It analyses technical drawings, scans compliance documents, and compares suppliers across pricing, lead times, certifications, and production capacity. It doesn’t just list options, but highlights the best-fit matches.

Think of it as a quiet but highly capable co-founder: one who never sleeps, shows up ready to handle the hard work of sourcing. For a solo entrepreneur or cash-strapped business, this means freedom and allows them to focus on design, branding, and customers rather than spreadsheets and endless vetting. From automation to empowerment
Let’s be honest: most small businesses can’t afford a sourcing expert. Data shows that if you’re starting out alone, with little cash and no team, finding the right supplier is risky and overwhelming.

According to reports that and that’s where AI Mode comes in. It doesn’t replace a person; it steps in when there is no person. It checks certifications, calculates real costs, and flags red flags so you don’t have to guess.

The future of trade won’t belong to the flashiest model, but to the most reliable one. And that future starts now. Sources indicate that for small teams, onboarding new hires takes time most SMEs don’t have. Instead of waiting months to gain experience, AI gives them instant support.

Sources indicate that they make better decisions from day one. It’s about making growth possible. When routine work gets faster, founders focus on building their brand, not chasing quotes. And as they scale, they hire more people, because now they can.

In the end, AI doesn’t ask questions for you. It helps you ask better ones. Building on momentum: Europe eyeing AI-driven trade
The surge in European order volume on Alibaba.com reflects a broader shift in the region’s business landscape.

Today, 90% of European SMEs cite product innovation as critical to their growth strategy, according to Alibaba.com research by Censuswide, and 62% express confidence in using AI tools for design, sourcing, and production. Fueled by sustainability rules, supply chain complexity, and rising competition, European businesses are turning to smarter, faster, more transparent sourcing. AI Mode is designed for this environment; it helps buyers navigate compliance, identify sustainable partners, and bring customised products to market faster.

AI Mode stands as both a technological milestone and strategic enabler which empowers businesses to compete globally, innovate efficiently, and source with greater intelligence. We’re not chasing hype. Evidence suggests that we’re building AI that works for real businesses, real supply chains, and real growth.

Sources indicate that the future of trade won’t belong to the flashiest model, but to the most reliable one. And that future starts now. Kuo Zhang is President of Alibaba.com, the B2B E-commerce platform of Alibaba Group, serving millions of SMEs worldwide.

Experts suggest this represents a significant moment for the Finance sector, with implications extending beyond immediate stakeholders.

— Based on reporting from euronews.com

💡 Key Industry Insights

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