Alicia Yap: I’d like to follow up on Daniel’s earlier remarks about how Alibaba intends to continue to focus on and invest in technological innovation as a means to create new business models and new opportunities for the businesses. I’m just wondering if you could break that down for us a little bit and explain which of the businesses this year we can expect to see adopting new technological innovations that lead to new business models and new opportunities that will, for example, result in accelerated CMR growth or boost cloud revenue or will perhaps be in local services, where these breakthroughs will be met. But I appreciate if Daniel could give us some more color on a segment-by-segment basis.
Daniel Zhang: Well, driving business growth with technology has been a constant theme for all of Baba throughout its history. But looking to the future, there are certainly several big opportunities for us that we can already see clearly. The first is around AI and lately, generative AI has become a hot topic around the world. But we’re not talking about having a chat bot through the sake of a chat bot. Rather, we’re talking about integrating that capability deeply into the business around consumption, around user experience for content generation to drive higher advertising effectiveness. AI can play a huge role in all of those different areas, and we have been working on that and continue to do so. Also, when it comes to how to match supply and demand more effectively, how to achieve higher effectiveness in terms of marketing and promotion, how do we achieve higher efficiency and better user experience around different services, all of those are places where we can leverage AI to make huge improvements.
So that’s the first part of the answer. But beyond that, when we talk about cloud computing and big data, Alibaba has substantial capabilities in terms of providing processing power. We have IS and pass offerings. But when we look at the future, and we also have, of course, our large pretraining model for AI. And what we’re seeing today with recent developments is that our — the view that we took on the future has panned out and proven to be consistent with what’s happening in the market. But going forward, there’s going to be exponential growth in demand for computing power to support these kinds of AI applications and Alibaba is ready to provide precisely that kind of computing power. So that is a big opportunity for us as well. And then just to add another word because I think implicit in your question was a concern around advertising revenue.
AI can be leveraged in the ways that we talked about earlier when we talked about supply chains and local services to better match local demand with fulfillment capabilities local supply in a certain time window and to make that whole local or neighborhood-based digital commerce scenario run much more efficiently. And we will continue to be working in those directions to grow our business. These are opportunities.
Operator: The next question is from Jerry Liu from UBS.
