Alibaba Group Launches AI Tool for 3D Restaurant Tours via Amap

This article first appeared on GuruFocus.

Alibaba Group Holding Ltd. (BABA, Financials) is adding a new AI tool to its mapping business, AutoNavi, better known as Amap. This feature lets restaurants make 3D virtual tours of their spaces.Using regular pictures or videos, restaurant owners can make realistic, high-quality 3D images using this technology. This cuts down on the cost of advertising and marketing by a large amount. Bloomberg cites sources who say Alibaba aims to provide the service for free to certain retailers during its test period.The project is a direct threat to Meituan and its Dianping platform as the two businesses fight for control of China’s food delivery and local service markets. It also fits with CEO Eddie Wu’s plan to make “AI-first” features a part of all of Alibaba’s operations, which is similar to what other internet companies like Alphabet’s Google and Tencent are doing.In Hong Kong, Alibaba shares were up 2.68% and ended the day at HK$153.00. This move shows that investors are becoming more confident in the company’s increased emphasis on AI and tools for engaging customers.