Alibaba reports a decline in net profit in its most recent fiscal year, attributing the setback to pressure on its core e-commerce business and the cost of expanding into artificial intelligence. Multiple outlets say the company’s e-commerce segment faces challenges including price wars and weaker consumption, which squeeze margins and limit growth. At the same time, Alibaba is investing heavily in AI initiatives, which adds to expenses and contributes to the overall profit decline. One source notes that the push into AI is costly and comes amid a domestic economic environment that remains challenging. Another source adds that the company’s profit falls by nearly a fifth for the period covered, linking the result to both domestic headwinds and AI-related spending. Overall, the reporting converges on two main factors: intensified competition and demand softness affecting Alibaba’s traditional businesses, and higher costs associated with scaling AI efforts. The company presents the AI investment as part of its strategy, but the financial results for the fiscal year reflect near-term financial strain.