Alibaba, Tencent spend billions on AI agents

Alibaba and Tencent are spending billions of dollars on generative AI to develop AI agents in China.

The companies are competing to make AI agents the main gateway for how users shop, work, and communicate online.

The shift follows earlier eras led by web portals, search engines, and super apps.

Companies now want AI to replace much of the click-and-scroll process with conversational tools that can understand requests and complete tasks.

AI can interpret user intent, combine information, recommend products, and place orders more efficiently than traditional online shopping flows, said Zhang Yi, founder and chief analyst at internet consultancy iiMedia.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Beijing is steering the growth of AI agents

China’s top regulators have issued guidelines to encourage common standards plus new uses for AI agents that understand requests then finish tasks 1.
The state’s “AI plus” plan treats agents as an important type of AI service expected to spread across work, everyday life, and public administration 1.
The plan sets a clear goal for next-generation intelligent terminals, agents, and related applications to reach an adoption rate above 70% by 2027 2.
Regulators also propose limits on agent authority, separating choices kept for users, steps needing approval, and tasks agents can handle on their own 2.

AI agents may become the next super-app gatekeepers

Chinese tech groups want agents to become the main doorway into their wider ecosystems, which strengthens the super-app model 3.
Alibaba pitches Qwen around a move “from question to action.” Qwen Task Assistant 1.0 is meant to plan tasks, carry them out, then deliver results across shopping, travel, local services, and food delivery 3.
A request such as “I want bubble milk tea” is framed as an end-to-end flow where the agent guides the user from search to payment inside Alibaba’s ecosystem 3.
Tencent is expected to launch its own agentic AI product soon, building on Weixin plus the company’s network of content, payments, and services 3.