Generative Artificial Intelligence (AI) in E-Commerce Market Report 2025

This Generative Artificial Intelligence (AI) in E-Commerce market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The generative artificial intelligence (AI) in e-commerce market size has grown rapidly in recent years. It will grow from $0.88 billion in 2024 to $1.04 billion in 2025 at a compound annual growth rate (CAGR) of 18.8%. The growth in the historic period can be attributed to increasing consumer expectations for personalized experiences, the growth of cloud computing infrastructure, improvements in natural language processing, the need for efficient content generation, and the integration of AI with existing e-commerce platforms.

The generative artificial intelligence (AI) in e-commerce market size is expected to see rapid growth in the next few years. It will grow to $2.06 billion in 2029 at a compound annual growth rate (CAGR) of 18.6%. The growth in the forecast period can be attributed to the expansion of omnichannel retail strategies, advances in AI ethics and regulations, increased investment in AI-driven startups, the development of more sophisticated recommendation systems, and growing consumer demand for real-time customization. Major trends in the forecast period include use of AI for dynamic pricing strategies, automation in customer service through advanced chatbots, greater integration of AI with augmented reality for virtual try-ons, expanded deployment of AI-driven content creation tools, the development of sophisticated AI models for predictive analytics.

The growing penetration of 5G networks is expected to fuel the expansion of generative artificial intelligence (AI) in the e-commerce market. As the fifth generation of mobile network technology, 5G offers faster speeds, lower latency, and more reliable connections compared to previous generations. The increasing adoption of 5G networks is driven by the need for faster internet, enhanced connectivity, and new applications that require higher speeds and reduced latency. In e-commerce, 5G networks bolster generative AI by enabling quicker data processing, real-time personalization, and seamless customer experiences through low-latency, high-speed connectivity. For example, in September 2023, 5G Americas, a US-based industry trade organization, reported that the 5G penetration rate in North America had reached an impressive 40%, with a 25.5% growth rate in the first half of 2023. It is projected that North America's 5G connections will soar to 669 million by 2028. Therefore, the growing penetration of 5G networks is accelerating the growth of AI in the e-commerce market.

Leading companies in generative AI for e-commerce are focusing on developing AI chatbot tools to enhance various aspects of the shopping experience. Generative AI chatbots are sophisticated software programs designed to simulate human conversation through text or voice interactions. For instance, in July 2023, Shopify Inc., a Canada-based e-commerce company, introduced Sidekick, a chatbot that leverages advanced generative AI models to engage customers in natural, human-like conversations. Sidekick provides personalized product recommendations, assists with order tracking, and offers real-time customer support, aiming to boost customer satisfaction, streamline interactions, and help merchants optimize their e-commerce operations.

In November 2023, Adobe Inc., a U.S.-based software company, acquired Rephrase.ai for an undisclosed amount. This acquisition aims to enhance Adobe's generative video capabilities by incorporating Rephrase.ai's expertise in AI-driven video and audio technology. Rephrase.ai, an India-based AI company, specializes in generative AI technology for creating personalized video content for e-commerce marketing.

Major companies operating in the generative artificial intelligence (AI) in e-commerce market are Wal-Mart Inc., Amazon Inc., Kroger Co, Alibaba Cloud LLC, Best Buy Co. Inc., Nvidia Corporation, Salesforce Inc., Zalando SE, Ebay Inc., Shopify Inc., Farfetch Ltd, LivePerson Inc., Grid Dynamics Holdings Inc., Bloomreach Inc., Algolia Inc., Coveo Solutions Inc, Magento Inc., Dynamic Yield Ltd, Leewayhertz Technologies Private Limited, MAVERICK Technologies LLC, QSS Technosoft Pvt. Ltd., Bluebash Consulting Pvt Ltd.

North America was the largest region in the generative artificial intelligence (AI) in the e-commerce market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative artificial intelligence (AI) in e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative artificial intelligence (AI) in e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in e-commerce involves the use of AI technologies that create new content and enhance user experiences through personalized, data-driven interactions. By leveraging advanced algorithms to analyze vast amounts of data, e-commerce businesses can generate unique product descriptions, images, and personalized recommendations, fundamentally changing how they engage with customers.

The key technologies of generative AI in e-commerce include natural language processing (NLP), computer vision, machine learning, speech recognition, and augmented reality. Natural language processing (NLP) is a technology that enables machines to understand, interpret, and generate human language, facilitating more natural interactions between businesses and customers. Generative AI can be deployed in various modes, including cloud-based, on-premises, and hybrid, catering to different applications such as business-to-business (B2B), business-to-consumer (B2C), personal use, business-to-business, seasonal promotions, and other e-commerce activities.

The generative artificial intelligence (AI) in e-commerce market research report is one of a series of new reports that provides generative artificial intelligence (AI) in e-commerce market statistics, including generative artificial intelligence (AI) in e-commerce industry global market size, regional shares, competitors with a generative artificial intelligence (AI) in e-commerce market share, detailed generative artificial intelligence (AI) in e-commerce market segments, market trends and opportunities, and any further data you may need to thrive in the generative artificial intelligence (AI) in e-commerce industry. This generative artificial intelligence (AI) in e-commerce market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The generative artificial intelligence (AI) in e-commerce market includes revenues earned by entities by providing services such as AI-driven solutions, personalization and recommendations, supply chain and inventory management, and automated responses. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

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