This photo taken on Feb 21, 2024 shows a multilingual product introduction video using AI technology at Yiwu International Trade Market in Yiwu, East China's Zhejiang province. [Photo/Xinhua]

Several months ago, I had an opportunity to interview some exporters in Zhejiang province, who leveraged the fast-developing artificial intelligence technology on e-commerce platforms to boost sales of products.

What impressed me most was that Zhang Min, a toy salesman at Yiwu International Trade Market, posted a video on an online marketplace, in which his virtual avatar could be generated, and speak various foreign languages fluently while introducing commodities.

The AI-powered digital human almost replicated Zhang's expressions, body language, gestures, voice and accent. He also opened a digital showroom to exhibit new products, and buyers can directly make purchases via online marketplaces.

He told me that the platforms for traditional Chinese foreign trade enterprises to win new customers have changed in recent years, as digitalization has become a necessary option for small and medium-sized companies to ramp up sales.

Currently, Zhang's products have been sold to more than 50 countries and regions around the world, including Southeast Asia, the Middle East and Africa.

He is among a growing number of entrepreneurs capitalizing on the innovative AI technology to transform traditional foreign trade models, and expand their presence in emerging markets.

AI is now reshaping the global trade landscape with unprecedented power. China has attached great importance to the development of AI, a strategic emerging field in which major economies are scrambling to gain a competitive edge.

The State Council, China's Cabinet, recently issued a guideline on deeply implementing the "AI Plus" initiative. The country will promote the use of AI in science and technology, industrial development, consumption, people's well-being, governance capability and global cooperation, according to the guideline.

This year's Government Work Report stated that China, under its "AI Plus" initiative, will work to effectively combine digital technologies with its manufacturing and market strengths, and support the extensive application of large-scale AI models.

Industry experts told me that the use of AI is expected to enter a new stage, with major technology companies accelerating AI applications in fields including consumption and manufacturing, and this shift will significantly elevate the efficiency of industries, injecting strong momentum for future innovation and development.

Currently, innovative digital technologies represented by AI have been increasingly applied to online e-commerce sites, with the potential to change the way people shop by providing interactive consumer experiences and propelling the digital transformation of traditional retailers.

Major e-commerce platforms are ramping up efforts to bolster the application of AI across their businesses and operations. For instance, Tmall, Alibaba Group's business-to-customer e-marketplace, offers consumers personalized guidance and advice with its AI-powered customer service chatbots, while online discounter PDD Holdings uses AI tools to analyze market trends and optimize sales strategies.

Consulting firm Bain & Company said in a report merchants trading on China's giant e-commerce platforms are embracing AI even more enthusiastically than Generation Z shoppers — those born between the mid-1990s and early 2010s.

It said 52 percent of the merchants surveyed have used at least one generative AI-enabled tool. Slightly more than half have used generative AI-powered customer service chatbot tools. About one in three have used AI to generate content.

Retailers that master generative AI in three key areas — deepening customer engagement, turbocharging productivity and cost savings, and finding new growth beyond trade — could build a lasting strategic advantage, it added.

James Yang, head of Bain & Company Greater China's retail practice, said it is vital that Chinese retailers deepen their customer engagement. "AI tools can energize customer retention efforts, enabling e-commerce players to hyper-personalize their engagement with consumers and create bespoke shopping experiences for them."

Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation, said a new type of consumption is mainly driven by technological advancements in AI, with a focus on consumers' personalized and diversified demands.

"Nurturing an AI-driven new consumption model is pivotal to expanding domestic demand, driving industrial upgrades and promoting high-quality economic growth," Hong said.