ARTIFICIAL INTELLIGENCE IN E COMMERCE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Regional Analysis

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North America has emerged as the dominant region in the global AI in e-commerce market with an estimated 40.3% share in 2024. This can be attributed to strong presence of leading technology companies and e-commerce players in countries like the U.S. The region is home to major AI developers such as Microsoft, IBM, Google, and Amazon who are investing heavily in developing advanced AI-powered solutions. Additionally, high adoption of online shopping among consumers due to increased internet penetration and technological awareness has propelled the e-commerce industry in North America. In June 2022, Zoovu, a Boston-based company specializing in AI-driven product discovery solutions for e-commerce, raised USD 169 million in a Series C funding round led by FTV Capital. This funding aims to enhance its presence in the U.S. market and strengthen its platform, which is utilized by major brands like Microsoft, Amazon, and 3M. As shopping continues to shift from physical stores to online platforms, brands and retailers are increasingly focusing on improving digital experiences for consumers.

Most of the large retailers in the U.S. and Canada are increasingly leveraging AI technologies to enhance customer experience on their platforms. AI is helping retailers in tasks like product recommendations, price optimization, supplier negotiations, demand forecasting and to reduce return rates. The wide availability of venture capital funding and focus on R&D by both private and public players has created a conducive environment for the growth of new AI startups in the region. Hence, North America has established itself as the dominant market with most advanced implementation of AI across the e-commerce value chain.

The Asia Pacific region is expected to be the fastest growing market for AI in e-commerce during the forecast period. The retail industry in Asia Pacific is transitioning rapidly towards online channels driven by increasing internet and smartphone penetration. Countries like China, Japan and India boast of massive online shopper base and growing preference for digital shopping among consumers. This makes Asia Pacific an attractive market for implementation of AI-empowered solutions aimed at personalizing the e-shopping experience.

A thriving startup ecosystem in Asia is also playing an important role in the development of affordable and localized AI-based tools. The presence of global tech giants and local e-commerce majors provides tailwinds for AI growth.