Alibaba Group’s AI-powered shopping chatbot has temporarily stopped issuing discount coupons after being overwhelmed by a sudden spike in user traffic. The chatbot, designed to assist shoppers with deals, recommendations, and queries, reportedly struggled to handle the volume of requests as consumer interest surged during recent promotional activity.

Coupon Feature Suspended Amid System Strain

Users interacting with the chatbot were met with messages asking for patience, as the system paused coupon distribution to stabilize performance. According to reports, the suspension was not due to a policy change but rather a technical limitation caused by unexpectedly high engagement levels.

Rising Demand Highlights AI Adoption Challenges

The incident underscores a growing challenge for large tech firms racing to integrate generative AI into consumer platforms. While AI-driven shopping assistants are intended to enhance user experience and boost sales, sudden demand spikes can strain backend infrastructure, especially during high-traffic shopping periods.

Alibaba Reassures Users on Fixes

Alibaba has indicated that teams are working to optimize system capacity and restore full chatbot functionality, including coupon issuance. The company emphasized that the disruption is temporary and reflects strong user interest rather than a rollback of AI-powered services.

Competitive Pressure in China’s AI Retail Race

The disruption comes as Chinese e-commerce giants increasingly compete on AI innovation, embedding chatbots into shopping, payments, and logistics. Analysts note that while AI tools are becoming key differentiators, reliability and scalability will be critical to maintaining consumer trust.

What This Means for Shoppers and Sellers

For shoppers, the pause may mean fewer instant discounts in the short term, while sellers could see brief slowdowns in promotional traction. However, experts believe such hiccups are part of the early growing pains of large-scale AI deployment in retail ecosystems.