Alibaba warns of emerging AI risks

Artificial intelligence is developing rapidly, and risks are emerging, according to Alibaba (9988) chairman Joseph Tsai Chung-Hsin.

Speaking at a summit hosted by HSBC (0005), Tsai noted that while various institutions are eager to increase their investments into AI, some funds are being allocated redundantly.  

Additionally, he pointed out that certain companies are raising capital through special purpose acquisition companies to establish databases without securing usage agreements with major corporations. 

This trend, he warned, is leading to the formation of a bubble in the industry.  

Tsai also noted that Alibaba's workforce has been shrinking for multiple consecutive quarters but believes the downsizing has now stabilized. 

Looking ahead, he expressed optimism about China's general domestic demand for the rest of the year.

STAFF REPORTER