This report signifies a massive expansion of AI and machine learning applications within e-commerce, projecting the market to reach USD 60.9 billion by 2031 with a CAGR of 16.8% from 2025. This growth indicates increased investment and adoption of AI solutions for personalization, recommendation engines, fraud detection, and supply chain optimization in the retail sector.
The retail & e-commerce sector will see a significant shift towards AI-driven operations, impacting customer experience, supply chain efficiency, and marketing effectiveness. Traditional retailers will face increased pressure to adopt AI solutions to compete with digitally native AI-first e-commerce platforms.
For e-commerce businesses, this trend underscores the need to invest in AI-driven technologies to remain competitive. Operators will need to focus on integrating AI into existing workflows, potentially requiring training programs to upskill employees. Areas of impact include improvements to customer service through chatbots, increased efficiency in order fulfillment through robotic automation, and enhanced personalization through machine learning-driven product recommendations.