Artificial Intelligence in Commerce - Global Strategic Business Report

The global market for Artificial Intelligence in Commerce was valued at US$3.3 Billion in 2024 and is projected to reach US$7.4 Billion by 2030, growing at a CAGR of 14.6% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Artificial Intelligence in Commerce market.

Global Artificial Intelligence in Commerce Market - Key Trends & Drivers Summarized

Why Is Artificial Intelligence Reshaping Commerce Through Hyperpersonalization, Automation, and Real-Time Intelligence?

Artificial Intelligence (AI) is transforming the global commerce landscape by enabling smarter, faster, and more personalized interactions across both digital and physical retail ecosystems. From dynamic pricing and demand forecasting to customer journey orchestration and inventory optimization, AI empowers businesses to extract actionable insights from massive volumes of structured and unstructured data. As omnichannel retail and direct-to-consumer (D2C) models scale, AI is becoming central to competitive differentiation, operational agility, and margin expansion.

Personalization stands as one of the most visible and impactful applications of AI in commerce. Retailers and e-commerce platforms leverage machine learning (ML) algorithms to analyze customer behavior, preferences, and purchase history to generate tailored product recommendations, personalized promotions, and curated shopping experiences in real time. These capabilities not only increase conversion rates and basket sizes but also enhance customer loyalty by creating context-aware engagement across web, mobile, and in-store interfaces.

AI is also automating time-intensive processes such as product tagging, fraud detection, chatbot support, and supply chain rebalancing. Natural language processing (NLP) and computer vision tools are used to streamline catalog creation, review moderation, and voice commerce, while robotic process automation (RPA) reduces manual back-office workloads. In physical retail, AI-powered video analytics and IoT sensors enable real-time shelf monitoring, shopper heatmapping, and loss prevention. Collectively, these capabilities are driving a shift from transactional commerce to intelligent, responsive commerce ecosystems.

How Are Predictive Analytics, Generative AI, and Retail Media Integration Expanding the Scope of AI in Commerce?

Predictive analytics powered by AI is enabling retailers to anticipate customer needs, optimize inventory levels, and enhance pricing strategies with greater precision. AI models analyze historical sales data, seasonality, promotional cycles, and macroeconomic signals to forecast demand and inform procurement, allocation, and markdown decisions. This foresight helps reduce overstocking, stockouts, and discounting, directly improving profitability and sustainability in inventory management.

Generative AI is emerging as a transformative layer in content creation, customer engagement, and product discovery. Retailers are deploying AI tools to automatically generate product descriptions, images, video content, ad copy, and virtual try-on experiences - dramatically reducing time-to-market and creative resource dependency. Chatbots and virtual assistants powered by large language models (LLMs) are enhancing pre-sale and post-sale support by handling complex queries, facilitating product education, and guiding purchase decisions with human-like interactions.

Retail media networks (RMNs) are leveraging AI to drive targeted advertising within e-commerce platforms and beyond. By integrating AI with first-party data, brands can serve hyper-relevant ads to high-intent consumers, optimize bidding strategies, and measure campaign performance in real time. AI enables closed-loop attribution, cross-channel retargeting, and dynamic creative optimization - making retail media a high-ROI growth engine. As brands shift ad budgets toward retailer-owned platforms, AI becomes critical to unlocking monetization opportunities across digital commerce ecosystems.

Which Commercial Segments and Global Markets Are Leading AI Adoption in Commerce?

E-commerce platforms and direct-to-consumer (D2C) brands are at the forefront of AI adoption, using intelligent tools to deliver frictionless shopping, optimize customer acquisition, and automate fulfillment. Large omnichannel retailers are deploying AI to integrate online and offline experiences, using predictive analytics and personalization engines to unify engagement across digital storefronts, mobile apps, and brick-and-mortar locations. Subscription-based models and marketplaces are also leveraging AI to drive lifetime value through churn prediction, upselling, and retention strategies.

Fashion, consumer electronics, and grocery retail are among the most advanced segments, given their reliance on dynamic pricing, high SKU volumes, and experience-centric engagement. In fashion, AI tools enable trend forecasting, size prediction, and visual search; in grocery, they support real-time replenishment, automated picking, and contextual promotions. Luxury brands are adopting AI to deliver personalized clienteling, fraud detection, and immersive storytelling that aligns with brand prestige.

Regionally, North America and Western Europe lead in AI maturity due to advanced digital infrastructure, high e-commerce penetration, and strong investment ecosystems. Asia-Pacific - particularly China, South Korea, and Japan - is scaling rapidly, driven by mobile-first consumers, super-app ecosystems, and AI-led retail innovation. In Latin America, the Middle East, and Africa, AI adoption is being fueled by fintech-retail convergence, mobile commerce growth, and investments in digital marketplaces. As AI becomes embedded in core retail operations, global retailers are increasingly building cross-functional AI centers of excellence to sustain innovation and scale.

How Are Ethical AI, Data Governance, and AI-as-a-Service Models Shaping Market Strategy?

As AI adoption deepens across commerce, concerns around algorithmic fairness, data privacy, and consumer trust are reshaping implementation strategies. Retailers must navigate regional data protection regulations such as GDPR and CCPA while ensuring ethical use of consumer data in AI decision-making. Explainability, transparency, and consent management are being embedded into AI models and user interfaces to safeguard brand reputation and mitigate compliance risks.

AI-as-a-Service (AIaaS) models are lowering entry barriers for mid-market and niche retailers by offering modular, cloud-hosted AI tools with API-based integration. These platforms allow users to access capabilities such as recommendation engines, churn predictors, or vision-based checkout solutions without extensive in-house expertise. AIaaS providers are increasingly bundling consulting, training, and model governance features to help clients accelerate implementation while maintaining operational control.

Strategic partnerships between retailers, cloud providers, martech platforms, and AI startups are enabling innovation at scale. These alliances support joint development of proprietary algorithms, co-branded customer experiences, and ecosystem-specific AI tools. As competitive intensity rises, differentiation is shifting from AI capabilities alone to how effectively they are deployed, governed, and monetized across the full customer journey.

What Are the Factors Driving Growth in the AI in Commerce Market?

The AI in commerce market is experiencing robust growth, underpinned by rising customer expectations, data-driven business models, and the need for operational efficiency at scale. Core growth drivers include personalization, automation, dynamic pricing, visual search, and content creation - all of which improve ROI and elevate brand experience in increasingly competitive environments.

As AI capabilities mature, retailers are moving from experimental pilots to full-scale enterprise deployments. Real-time analytics, generative tools, and AI-augmented commerce platforms are reshaping how products are discovered, experiences are delivered, and value is created. The convergence of AI with edge computing, 5G, and IoT will further deepen its impact in areas such as smart retail, cashier-less checkout, and immersive shopping environments.

Looking forward, the trajectory of AI in commerce will depend on how well enterprises balance technological advancement with ethical responsibility, cost scalability, and human-centric experience design. As AI transitions from back-end optimization to front-end engagement, could it become the defining driver of intelligent, anticipatory, and emotionally resonant commerce?

Report Scope

The report analyzes the Artificial Intelligence in Commerce market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Platform (E-Commerce, In Store); Technology (Deep Learning, Machine Learning, NLP, Other Technologies); Application (Customer Relationship Management, Supply Chain Analysis, Fake Review Analysis, Merchandising, Warehouse Automation, Product Recommendation, Fleet Management, Other Applications); End-Use (Retail, Electronics, Logistics, Food & Beverages, Other End-Uses).

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the E-Commerce Platform segment, which is expected to reach US$5.5 Billion by 2030 with a CAGR of a 16.0%. The In Store Platform segment is also set to grow at 10.9% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $863.3 Million in 2024, and China, forecasted to grow at an impressive 13.6% CAGR to reach $1.1 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Artificial Intelligence in Commerce Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Artificial Intelligence in Commerce Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Artificial Intelligence in Commerce Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Adobe Inc., Alibaba Group, Amazon Web Services, Assiduus Global Inc, Bloomreach and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 42 companies featured in this Artificial Intelligence in Commerce market report include:

• Adobe Inc.
• Alibaba Group
• Amazon Web Services
• Assiduus Global Inc
• Bloomreach
• C3.ai
• Commerce.AI
• Conversable
• DataRobot
• eBay Inc.
• Empower AI
• Facebook (Meta Platforms)
• Flipkart
• Google LLC
• IBM Corporation
• JD.com
• Microsoft Corporation
• Novomind AG
• Oracle Corporation
• Salesforce.com Inc.

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What's Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry