AI In E-commerce Market Size, Share, Opportunities, And Trends By Application (Personalization, Customer Service, Supply Chain Optimization, Fraud Prevention), By Offering (B2B, B2C, C2C, Omnichannel), By End-Users (Food and Beverages, Fashion & Apparel, Retail, Healthcare, Others), And By Geography - Forecasts From 2024 To 2029

The AI in e-commerce market is expected to grow at a CAGR of 15.70%, reaching a market size of US$14.520 billion in 2029 from US$7.886 billion in 2024.

Artificial intelligence in e-commerce refers to the use of AI technologies and techniques to enhance the online shopping experience, process, and outcomes for individuals or organizations. Key features of AI e-commerce include customer centricity, chatbots and virtual assistants, prediction, and dynamic pricing. It also ensures better customer engagement, providing e-commerce firms with specialized recommendations based on content, commercials, and marketing mediums oriented to customers’ preferences and behavioral patterns.

Intelligent virtual agents are chatbots and voice self-assist devices that perform many of the functions of a customer care executive, such as addressing customer queries, conducting product searches, and enhancing cross-communication throughout the customer journey. This enhances the customer journey, reduces turnaround times, and lowers costs for e-commerce businesses. Graphics and Predictive Analysis in Artificial Intelligence (AI) is accompanied by predicting financial and human resource management accounting demand, involved supply chain process control and risk management in e-commerce industries, and sales-related statistics collection and analysis.

Moreover, drawing on historical data and trends in the given industry, business enterprises in e-commerce would be able to avoid losses by stocking out products. E-commerce AI solutions streamline processes within the organization, enhance the experience of the clients, and speed up development in the very competitive web environment. Thus, e-commerce revolutionizes the ways of doing business and encourages creativity.

What are AI in e-commerce market drivers?

• Rising personalized shopping experiences is contributing to the AI in e-commerce market growth

AI recommendation engines can use the data and behavior of the user and other people to recommend products to the users. This leads to increased user interaction and purchase rates. Inordinate shopping experiences play a major part in AI in e-commerce market growth, enhancing customer engagement, conversion, and loyalty for a particular brand. For instance, ZBrain is one of the industry's most significant and differentiating offerings, being a comprehensive generative AI system for building enterprise LLM-based applications from scratch. ZBrain’s real-life implementations of solutions can ease processes by carrying out some tasks, enhancing interactions with customers, and making strategic decisions.

Moreover, AI in e-commerce brings higher customer satisfaction, purchase rates, and the industry’s expansion as a whole due to enhanced targeted and personalized shopping experience. With technological changes, personalization in e-commerce will become more tactical as online shoppers expect more dedicated and relevant services.

• Inventory management and demand forecasting are contributing to the AI in e-commerce market growth

The use of AI enables enhanced forecasting of demand and management of inventories so that inventory levels are maintained without incurring unnecessary costs in the management of surplus stock. Commerce AI, one of the offerings, enables merchandisers to easily use AI and other concepts and tools, leading to better efficiency and sales. The commerce concierge connects with chat applications and allows product searches, responses, and transactions to be carried out using words, images, and data.

• Rising technological advancements are contributing to the AI in e-commerce market growth

Over the years, many have viewed AI as a revenue generation and operational efficiency enhancement tool. In the recent past, AI-based technology has been embraced by many small-scale e-commerce businesses. This appreciation for artificial intelligence and its related technologies has always been present at Amazon. The enormous e-commerce organization implements algorithms to accelerate transportation and improve customer service and a variety of products. The science of AI is concerned with understanding how human intelligence works and how this can be replicated in computers that can act intelligently. Most areas of research, engineering, education, business, etc., have also developed AI products and processes and applied them quite effectively.

Major restraints in AI in the e-commerce market:

• Integration challenges are anticipated to hamper the market growth

The challenges of integrating AI technologies into existing e-commerce platforms and processes may be many and lengthy. Older systems may not work with modern AI applications, requiring expensive and inconvenient system modifications or even brand-new installations. Integration issues may postpone AI initiatives and increase costs, negatively affecting AI in the e-commerce market expansion.

Geographical outlook of AI in the e-commerce market:

• North America is witnessing exponential growth during the forecast period

North American market is expected to hold the largest share, as it is known for its technology-oriented creative business culture. It is home to some of the most rapidly expanding and existing tech giants, such as IBM, Salesforce, Meta, and Google, to mention a few. Such an environment promotes the growth and utilization of technology, including AI, in various industries such as e-commerce. The continent of North America possesses a well-developed digital infrastructure, such as high-speed internet. Still, a majority of the population is challenged with using smartphones and advanced means of payment. All these factors encourage both businesses and individuals to embrace AI-driven e-commerce systems.

Additionally, North America has a huge chunk of the e-commerce business globally, thanks to the large population that adheres to online shopping and the rapidly growing digital space. This allows several opportunities for AI e-commerce solution providers to enter the region and conquer the market.

Key developments in AI in the e-commerce market

• In September 2024, Amazon launched AI-powered resources to assist brands in producing more captivating content for their product pages. The A+ Content uses a generative AI feature to create narrative content and lifestyle images based on the seller's specified key product attribute.
• In March 2024, IBM launched Sterling Intelligent Promising Premium. Optimizing supply chain costs is essential for effective cost management and reliable maintenance. Throughout their purchasing process, customers expect openness and confidence. From discovery to delivery, their creative solution enables companies to use data, real-time systems, and machine learning (ML), enabling a digital transformation.

AI In E-commerce Market Scope:

Report Metric	Details
AI In E-commerce Market Size in 2024	US$7.886 billion
AI In E-commerce Market Size in 2029	US$14.520 billion
Growth Rate	CAGR of 15.70%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Application Offering End-Users Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in AI In E-commerce Market	BigCommerce Pty. Ltd Salesforce Appinventiv Kyndru LeewayHertz
Customization Scope	Free report customization with purchase

 

The AI in e-commerce market is analyzed into the following segments:

• By Application
  • Personalization
  • Customer Service
  • Supply Chain Optimization
  • Fraud Prevention
• By Offering
  • B2B
  • B2C
  • C2C
  • Omnichannel
• By End-Users
  • Food and Beverages
  • Fashion & Apparel
  • Retail
  • Healthcare
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • UK
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AI IN E-COMMERCE MARKET BY APPLICATION

5.1. Introduction

5.2. Personalization

5.3. Customer Service

5.4. Supply Chain Optimization

5.5. Fraud Prevention

6. AI IN E-COMMERCE MARKET BY OFFERING

6.1. Introduction

6.2. B2B

6.3. B2C

6.4. C2C

6.5. Omnichannel

7. AI IN E-COMMERCE MARKET BY END-USERS

7.1. Introduction

7.2. Food and Beverages

7.3. Fashion & Apparel

7.4. Retail

7.5. Healthcare

7.6. Others

8. AI IN E-COMMERCE MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Application

8.2.2. By Offering 

8.2.3. By End-Users

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Application

8.3.2. By Offering 

8.3.3. By End-Users

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Application

8.4.2. By Offering 

8.4.3. By End-Users

8.4.4. By Country

8.4.4.1. Germany

8.4.4.2. France

8.4.4.3. UK

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Application

8.5.2. By Offering 

8.5.3. By End-Users

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Israel

8.5.4.4. Others

8.6. Asia Pacific

8.6.1. By Application

8.6.2. By Offering 

8.6.3. By End-Users

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Indonesia

8.6.4.6. Taiwan

8.6.4.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. BigCommerce Pty. Ltd

10.2. Salesforce

10.3. Appinventiv

10.4. Kyndru

10.5. LeewayHertz.

10.6. Kyndryl

10.7. AltexSoft

10.8. Toloka

10.9. Virto Commerce

BigCommerce Pty. Ltd

Salesforce

Appinventiv

Kyndru

LeewayHertz.

Kyndryl

AltexSoft

Toloka

Virto Commerce