Alibaba Group (BABA) is stepping up its push into AI. The company is planning a major update to its main mobile AI app in the coming months. It will rename its current “Tongyi” app on iOS and Android to “Qwen,” the same name as its well-known AI model. The aim is to make the app more like ChatGPT and offer smarter tools for everyday users.
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As part of the update, Alibaba will add new “agent-AI” features that help people shop on Taobao and its other e-commerce platforms. These changes will roll out in stages.
BABA Aims to Build a Consumer AI Business
For now, the Qwen app is expected to stay free. Alibaba wants to build a large user base first and later earn money from consumer AI services. This marks a change for Alibaba because, in China, most AI income currently comes from business customers, not everyday users.
Alibaba also trails its rivals in user numbers. Apps from Tencent (TCEHY) and privately held ByteDance currently attract more traffic. By adding shopping tools, Alibaba hopes its strong e-commerce ecosystem will draw more people to the new Qwen app and help close the gap.
The company already runs a few AI apps, including “Qwen Chat,” but the goal is to bring everything under one simple, unified brand.
Alibaba Ramps Up Its AI Push
In September, CEO Eddie Wu said the company would step up investment in AI tools and the technology behind them, showing that AI is now a core focus. Alibaba has tried consumer AI tools before. Earlier this year, it upgraded its Quark search app to work more like an AI assistant. Quark will remain available, but Alibaba expects Qwen to become its main consumer AI app going forward.
During its most recent quarter, Alibaba reported strong growth in AI-related products and posted better-than-expected cloud results, which helped lift sentiment around the stock. The new Qwen app could build on that momentum by drawing more daily users and linking AI tools more closely to its shopping platforms.
The key test will be how quickly users adopt the updated app and whether Alibaba can turn that interest into real revenue. Investors will learn more soon, as the company is set to report its Q2 FY26 results, where it may share more details on user growth and AI plans.
Is Alibaba a Good Stock to Buy Now?
On TipRanks, BABA stock commands a Strong Buy consensus rating based on 16 unanimous Buy ratings. The average Alibaba stock price target of $165.61 implies 20.76% upside potential from current levels.
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