In a bold projection that paints a picture of tomorrow’s workforce, Chinese tech giant Alibaba Group Holding (NYSE:BABA) anticipates that AI-powered “digital colleagues” will be an everyday reality within the next five years.

This isn’t just a futuristic fantasy; it’s a strategic vision fueled by a burgeoning ecosystem of developers crafting sophisticated AI agents to cater to both consumer and business demands.

These digital colleagues, essentially virtual employees powered by AI software, are set to revolutionize how we work by taking on the repetitive, routine tasks traditionally handled by humans.

Also Read: Huawei-Alibaba Clash Heats Up On AI Model Plagiarism Allegations

This shift, according to Alibaba, will free up human employees to concentrate on more strategic, creative, and high-value responsibilities.

Huang Fei, vice president of Alibaba Cloud and head of its Tongyi Natural Language Processing Lab, told the SCMP that agentic AI systems that autonomously carry out tasks and achieve goals on behalf of users are quickly gaining momentum across the industry.

Speaking at the China Conference 2025 hosted by the SCMP, Huang outlined how a handful of core model providers and a broader base of developers building specialized agents will likely shape the AI landscape.

This vision aligns with Alibaba’s broader strategy to become a central player in AI infrastructure and foundational models. The company’s Qwen series of open-source large language models has gained strong adoption, and Alibaba has committed over $53 billion toward AI infrastructure over the next three years.

Huang emphasized Hong Kong’s potential as a hub for AI development, citing its strong legal system, government support, leading universities, access to capital, and close connection to mainland China. He said the city provides financial backing, talent, and foundational support for the AI industry.

He also pointed to Hong Kong’s first AI Supercomputing Centre, launched in December and run by the government-backed Cyberport Management Company, which has already reached 90% utilization.

Huang outlined five stages in AI evolution. The first involved chatbots capable of responding to human language. The second, called the “reasoner,” included AI that could tackle math and code. The third, the “agent” stage, marks a shift toward systems that understand user goals and use tools to perform complex tasks.

This transformation is already being felt across industries. In June, Salesforce (NYSE:CRM) CEO Marc Benioff revealed that AI now handles up to 50% of tasks in key areas like engineering, coding, and support. When asked if AI could replace him, Benioff joked, “I hope so,” highlighting AI’s growing role, even at the top.

Similarly, Microsoft (NASDAQ:MSFT) CEO Satya Nadella stated in March that AI will transform how people perform cognitive tasks, rather than replacing knowledge workers outright. He foresees AI agents managing repetitive work, liberating humans for creativity and strategic thinking, much like email or spreadsheets did for previous generations.

Meanwhile, Alibaba and other Chinese stocks faced downward pressure on Wednesday amidst looming U.S. tariff deadlines. President Trump signaled potential tariffs as high as 70% effective August 1, a significant jump from the 10%-50% range proposed in April, as reported by Reuters on Tuesday.

The first batch of tariff notification letters was sent to 12 countries on Monday, just before Wednesday’s deadline, marking the end of a 90-day pause. Investors anticipate continued uncertainty, as a comprehensive trade deal with all major partners--including India, Japan, and the EU--is unlikely to materialize this week.

It’s a stark contrast to May, when Beijing and Washington had agreed to temporary tariff reductions: the U.S. cutting tariffs on most Chinese imports from 145% to 30%, and China lowering duties on American products from 125% to 10% for a 90-day period.

Price Action: BABA shares are trading lower by 2.64% to $105.14 premarket at last check on Wednesday.

Read Next:

• Alibaba’s Delivery Ambition Sets Stage For China’s Epic Clash Of Giants

Photo by Mamun_Sheikh via Shutterstock