Artificial Intelligence in E-commerce Market Report by 2032

27 Mar 2024

Share :

Table of Content

1. Market Overview 2. Regional Snapshot 3. Artificial Intelligence in E-commerce Market Report Scope 4. Market Dynamics 5. Recent Developments 6. Key Market Players

The global artificial intelligence in e-commerce market size surpassed USD 6.63 billion in 2023 and is estimated to attain around USD 22.60 billion by 2032, growing at a CAGR of 14.60% from 2023 to 2032.

Market Overview

Artificial intelligence in e-commerce market refers to the use of AI technologies such as computer vision, natural language processing and machine learning in e-commerce platforms. Artificial intelligence is rapidly becoming a significant part of everyday life. Most e-commerce companies have ample data to pull from. Artificial intelligence makes it easier to leverage, analyze, and easier data to produce actionable information. E-commerce is another company that gets advantages from AI technologies.

The major benefit of AI for E-commerce is its ability to calculate vast volumes of data and learn from the information provided to offer a better result. Industries that use AI solutions to better understand their clients, deliver more relevant products, calculate the ideal timing and costs for their business offerings and collect trustworthy and accurate analytic information. The growth in the forecast period can be attributed to a growing focus on consumer data analytics, rising investments in artificial intelligence in e-commerce, increasing demand for AI-powered goods recommendations, and rising use of AI in supply chain management.

Regional Snapshot

North America dominated artificial intelligence in e-commerce market in 2023. The use of artificial intelligence technology for the automation of industrial machinery is likely to drive the market. In the U.S., the combination of artificial intelligence in the field of e-commerce has anticipated significant advancements. In the e-commerce platforms, AI advancements have become integral to improving consumer experiences and optimizing operational efficiency.

AI-driven anticipating analytics has revolutionized demand forecasting and inventory management, permitting e-commerce businesses to improve stock levels, reduce prices, and minimize out-of-stock conditions. Other regions look to adopt similar policies to stay competitive in artificial intelligence in e-commerce market, as e-commerce giants execute cutting-edge AI technologies in America. As the technological platforms develop, an extensive understanding of the advancements in the U.S. supplies valuable insights for e-commerce stakeholders all over the world, guiding them in utilizing the full potential of artificial intelligence for future innovation and growth.

The Asia Pacific region is estimated to grow fastest in the forecast period. This region is making a footprint in AI-driven solutions through several companies, including the e-commerce industry. In the Asia Pacific region, e-commerce industries have experienced unexpected development in recent years, driven by developing consumer habits and rapidly improving technologies.

• In China, AI salesmen set to get AI hosts on e-commerce platforms have announced deals during live streams. In China’s e-commerce industry, massive sale seasons are a huge feature, and e-commerce platforms are moving towards AI-generated videos to host the livestreams.

Artificial Intelligence in E-commerce Market Report Scope

Market Dynamics

Driver

Increasing use of AI-powered chatbots

The rising use of AI-powered chatbots is the major driver of artificial intelligence in e-commerce market. Chatbots provide personalized responses to consumers to boost their experience. These chatbots provide natural language processing technologies, machine learning, and real-time insights based on the consumer's choice. Chatbots understand sentiments and consumer behavior patterns and guide them by responding to their issues and building relations. Such AI-powered chatbots are allowing e-commerce apps and websites to improve the platform's reliability and consumer servicing, which is driving their adoption in the industry.

• In July 2023, Tidio announced the launch of a new chatbot named Lyro. It was the first conversational artificial intelligent chatbot built for medium and small businesses. Lyro stands out among other chatbot solutions on the market for representing the invention of consumer service automation. Lyro is conversational and accurate on hyper-personalized consumer support. The best part of Lyro is that it does not charge any costs.

Restraint

Data protection privacy and concerns

The e-commerce platform collects client's information to improve sales and personalize the experience. It is very important to handle consumer data carefully and maintain privacy regulations. There are sufficient concerns about the way consumer data is being handled and stored by e-commerce corporations. Governments all over the world are creating various regulations and bills to address the privacy issues that various observing organizations have increased. These factors can act as restraints for artificial intelligence in e-commerce market.

Opportunity

Robotic automation impacts e-commerce

The stimulation of online shopping over the past year has forced businesses all over the supply chain to examine how they deal with demand. Many businesses need to adopt an automation strategy to create the supply chain of the future. For those who are still unsure of how to develop businesses in the modern technology world, AI-enabled robotics offer the best benefits. With the robotic and generative AI service, businesses are focusing on simplifying their product sorting and quick delivery to achieve price reduction and revenue growth. AI-powered robots improve logistic efficiency, reduce human workload, increase consumer satisfaction, and boost overall efficiency. This robot-enabled opportunity must enhance the growth of artificial intelligence in e-commerce market.

• JD.com, a Beijing-based e-commerce company, has collaborated with Siasun Robot and Automation Co Ltd. to improve its warehouse operations through automation.

Recent Developments

• In February 2024, PayPal launched new AI-powered e-commerce inventions. PayPal is testing a series of AI-powered factors to help businesses reach more consumers and make transactions faster.
• In February 2024, Vedanta Aluminum has developed an eCommerce platform. The platform provided customers with end-to-end visibility of the products, just-in-time delivery, and real-time AI-based cost discovery from order placement to delivery.
• In January 2024, At the National Retail Federation Expo in California, Salesforce launched four new AI tools for eCommerce businesses. The four new AI tools include employee productivity, return activities, customer analysis, and the use of consumer information. The announcement comes on Salesforce’s searches that AI played an important role in informing customers of purchases during the holiday season.
• In October 2023, 10 new artificial intelligence tools for business were released by Square, an online marketplace and point-of-sale platform. These tools are helping to improve the focus and efficiency of growth for small businesses in various sectors.
• In November 2023, Amazon launched Q in New York, a business chatbot that uses generative artificial intelligence. The announcement was made at the company's annual conference for its cloud computing service, Amazon Web Services, in Las Vegas, describing the company's response to competitors who have launched chatbots that have caught the attention of customers.

Key Market Players

• Amazon Web Services, Inc.
• Apple Inc.
• Google LLC
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• Nvidia
• Oracle Corporation
• SAP SE
• Siemens

Market Segmentation

By End User

• IT and Telecommunication
• Retail and E-Commerce
• BFSI
• Healthcare
• Manufacturing
• Automotive
• Others

Buy this Research Report@ https://www.precedenceresearch.com/checkout/1905

You can place an order or ask any questions, please feel free to contact at sales@precedenceresearch.com | +1 650 460 3308