AI-Powered Alipay in Internal Testing: Biggest Revamp in 20 Years, Conversational UI Replaces Traditional Interface

Ant Group is internally testing an AI-powered version of Alipay, codenamed "Bao Project," marking the most radical overhaul in nearly two decades. The new version features a standalone conversational interface that users can switch to with one tap, while the classic version remains default. Users can manually set the AI version as their preferred mode. The AI assistant, named "Abao," can handle complex tasks such as hailing a ride, ordering coffee, buying funds, and more through natural language or voice commands, integrating spending analysis and financial operations.

Project Background and Confidentiality Level

• The project is led by Li Jun, President of Alipay Business Group, and is classified as Ant Group's highest-confidentiality project. Unauthorized employees were once unable to swipe their access cards to enter related areas.
• As early as the second half of 2023, Alipay management began discussing AI-driven directions. Initial attempts included standalone native AI apps (e.g., "Zhi Xiaobao" launched in September 2024), but results fell short of expectations. In March 2025, the team shifted focus back to within the Alipay app, and the project was formally established in December 2025.
• The product roadmap ultimately chose to "replace the old with the new" within the existing app: users can switch to the AI version with one tap, gradually migrating their habits.

Key Details: Interaction and Ecosystem

• Interaction Method: Shifting from "service as app" to "service as conversation." The project team produced over 100 design versions before settling on conversation as the core.
• Mini-Program Ecosystem: Alipay hosts millions of mini-programs. AI needs to understand service data rather than just user intent. The technical roadmap was adjusted to prioritize service understanding. Integration adopts a "dual-track" approach: encouraging merchants to proactively connect via MCP/Skill, while using AI "screen reading" to accommodate unmodified mini-programs.
• Capability Scope: Covers ride-hailing, coffee ordering, food delivery, fund purchases, medical consultations, health management, etc., aiming to connect all life scenarios through AI.

Reactions and Competitive Landscape

• Tencent WeChat: Almost simultaneously, WeChat was reported to be testing AI agents, with a more conservative approach of embedding an assistant within the existing app. WeChat has 1.4 billion users and millions of mini-programs, with the advantage of "scenario as service"—AI can directly invoke mini-programs within chat interfaces to complete orders, payments, etc.
• Industry Background: The proliferation of frameworks like OpenClaw poses a risk of "pipelining" super apps, as system-level AI on smartphones could directly call underlying services. To avoid being sidelined, super apps must become the smartest AI entry points themselves.
• Financial Investment: Ant Group's Q4 2025 profit plunged 79%, mainly due to high spending on AI chip procurement, large model R&D, and promotional subsidies. During the Spring Festival, Tencent, Alibaba, and ByteDance spent billions in cash subsidies to promote AI products.

Impact and Outlook

• Since its IPO was halted in 2020, Ant Group has been undergoing continuous transformation, with AI seen as key to "technological survival." CEO Han Xinyi stated, "Use AI to redo the three service industries: lifestyle, finance, and health."
• After the AI version of Alipay launches, an AI open platform for merchants and developers will be released soon, enabling cross-device connectivity with phones, car systems, smart glasses, and more.
• Alipay and WeChat differ in their AI transformation paths: Alipay is more aggressive, directly launching a standalone AI interface; WeChat is more conservative, embedding an assistant within the existing framework. Both aim to become the super entry point in the Agent era.
• This transformation may redefine the daily lives of 1 billion users: from manually tapping apps to voice-command-driven AI tasks. The old era is fading.