Artificial Intelligence in E-commerce Global Market Report 2024

The global artificial intelligence in e-commerce market has grown rapidly in recent years. It will grow from $7.01 billion in 2023 to $8.06 billion in 2024 at a compound annual growth rate (CAGR) of 15.1%. The growth in the historic period can be attributed to demand for personalized shopping experiences, improved search and discovery, chatbots and virtual assistants, government support for ai development.

The global artificial intelligence in e-commerce market is expected to see rapid growth in the next few years. It will grow to $14.07 billion in 2028 at a compound annual growth rate (CAGR) of 14.9%. The growth in the forecast period can be attributed to increasing focus on customer data analytics, increasing investments in the ai in e-commerce, growing demand for ai-powered product recommendations, increasing use of ai in supply chain management, increasing use of ai in fraud detection. Major trends in the forecast period include technological advancements in ai, voice commerce expansion, supply chain optimization, ai-enhanced customer support, conversational e-commerce.

The surge in online shopping is anticipated to be a significant driver of growth in the artificial intelligence within the e-commerce market. Online shopping, which involves purchasing goods or services from a seller via the Internet using a web browser or mobile application, has witnessed remarkable growth. Artificial intelligence is increasingly employed in e-commerce to enhance the customer experience and optimize various business processes, including pricing and inventory management. As an illustration, a report from Adobe, a US-based software company, published in June 2023, revealed that online retail sales in the United States constituted 40% of total sales in the first quarter of 2021, marking an increase from 36% during the corresponding period in 2020. Consequently, the upsurge in online shopping is a driving force behind the expansion of the artificial intelligence market within the e-commerce sector.

The growing internet penetration is set to drive the expansion of the artificial intelligence in the e-commerce market in the future. Internet penetration, defined as the percentage of a given population or group with internet access, plays a crucial role in fueling the adoption of AI in e-commerce. It achieves this by providing a wealth of data, expanding the customer base, and enhancing various aspects of the shopping experience, as well as operational efficiency and competitiveness. As of September 2023, reports from Broadband Search, a US-based company specializing in internet and TV provider data, estimate that 93.79% of the United States' population, approximately 311.3 million individuals, currently have access to the internet. Therefore, the increasing internet penetration is a driving force behind the artificial intelligence in the e-commerce market.

Privacy-related concerns linked to the utilization of AI in e-commerce pose a substantial obstacle to the growth of the artificial intelligence (AI) market within the e-commerce industry. It is vital for e-commerce businesses to effectively address these privacy concerns to ensure the widespread adoption and advancement of AI technology in this sector. For example, as of October 2021, a study reported by Commerce Times, a US-based publication, revealed that approximately 70% of consumers abandon their purchases due to apprehensions related to privacy. As a result, these privacy concerns regarding AI deployment in e-commerce are impeding the prospective growth of the artificial intelligence market in the e-commerce sector.

Prominent firms operating within the artificial intelligence in the e-commerce sector are actively pursuing the development of innovative technologies, such as generative AI e-commerce SaaS solutions, to maintain their competitive edge in the market. These generative AI technologies integrated into e-commerce SaaS platforms empower users by offering personalized, automated inventory management and cutting-edge product discovery experiences. As an illustrative example, in May 2023, Hype, an e-commerce company based in India, introduced a generative AI-driven e-commerce Software-as-a-Service (SaaS) platform. This pioneering platform has the potential to transform the landscape of online commerce by granting merchants the capability to establish, optimize, and oversee their online stores. Its foundation relies on a sophisticated artificial intelligence and machine learning framework that continuously learns and adapts to the unique data patterns of each individual store.

In February 2023, eBay Inc., a US-based e-commerce company at the forefront of artificial intelligence, completed the acquisition of 3PM Shield LLC for an undisclosed sum. This strategic move by eBay is designed to provide both sellers and customers with a safe and dependable platform that harnesses advanced technology. Additionally, it will expedite the implementation of state-of-the-art technology aimed at combating counterfeit products, unsafe merchandise, and illegal items. 3PM Shield LLC, a US-based software firm, specializes in delivering market compliance solutions that enhance the e-commerce experiences of customers through the integration of artificial intelligence.

Major players in the artificial intelligence in e-commerce market are Apple Inc., Google LLC, Microsoft Corporation, Amazon Web Services Inc., Siemens AG, Intel Corporation, The International Business Machines Corporation, Oracle Corporation, SAP SE, Nvidia Corporation, Sentient Technologies, Bloomreach, Aidaptive, Coveo, Dynamic Yield, Persado, Emarsys eMarketing Systems, Syte, Bluecore, Twiggle, Kindred AI, ViSenze, Gorgias, Layer 6 Inc., Nauto.

North America was the largest region in the artificial intelligence in e-commerce market in 2023. The regions covered in artificial intelligence in the e-commerce report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the artificial intelligence in the e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The key technologies for implementing artificial intelligence in e-commerce encompass natural language processing (NLP), deep learning, and machine learning. Natural language processing is a branch of AI that centers on the interaction between computers and human language. These AI technologies can be deployed through various methods, including cloud-based and on-premise solutions. They are applied in diverse e-commerce applications such as customer relationship management, supply chain analysis, analysis of fraudulent reviews, warehouse automation, merchandising, product recommendations, customer service, and more. These applications cater to various industries and end-users, including information technology and telecommunications, retail and e-commerce, banking, financial services, insurance (BFSI), healthcare, manufacturing, automotive, and others.

This report provides artificial intelligence in e-commerce market statistics, including artificial intelligence in e-commerce industry global market size, regional shares, competitors with artificial intelligence in e-commerce market share, detailed artificial intelligence in e-commerce market segments, market trends and opportunities and any further data you may need to thrive in the artificial intelligence in the e-commerce industry. This artificial intelligence in e-commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The artificial intelligence in the e-commerce market consists of revenues earned by entities by providing personalized recommendations, voice commerce and virtual assistants. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence in the e-commerce market also includes of sales of inventory management systems, visual search tools and dynamic pricing tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.