Online marketplace platforms are a dominant economic force globally and AI will further revolutionise this sector.
Artificial intelligence (AI) is shaping the future of global online marketplaces, with the next frontier poised to see AI shopping agents making autonomous purchasing decisions for shoppers.
This is according to a report compiled by tech investment company Prosus, in collaboration with intelligence data platform Dealroom.co.
Titled: “The AI x e-commerce revolution: How AI is shaping the future of online marketplaces”, the report describes the trends, challenges and opportunities shaping e-commerce, as the industry radically transforms in the age of AI. The research identifies agentic AI as a driving power in the sector.
According to the study, online marketplace platforms have emerged as a dominant economic force globally and AI is another seismic technological change.
AI applications help supercharge online marketplaces through the deployment of a combination of advanced technologies, such as machine learning, natural language processing and predictive analytics.
Marketplaces leveraging AI are accelerating their relevance to consumers, enhancing personalisation, driving unprecedented growth and liquidity with more listings, and enabling more repeat purchases, leading to higher conversion rates, notes the report.
Fabricio Bloisi, CEO of Prosus Group, comments:“The online platform economy has fundamentally changed how businesses andconsumers interact. Now, AI represents another seismic technological shift fore-commerce companies’ relationships with consumers.
“Companies using AI are dramatically improving the user experience, enhancing personalisation and driving unprecedented growth. AI adoption is no longer optional – it’s an imperative.
“The recent release of DeepSeek’s R1 open source model is more than just a milestone in AI technology. This ‘DeepSeek moment’ is a transformative opportunity for businesses to accelerate value creation through new applications.”
Fabricio Bloisi, CEO of Prosus Group.
The report reveals the combined revenue of online marketplaces across the globe is $1.3 trillion, while the enterprise value of all global online marketplaces is $4 trillion.
“The success and relevance of online marketplaces is reflected in their all-time-high aggregate valuation of $12 trillion. Companies like Amazon, Mercado Livre and Uber, have shown marketplaces are also a great foundation for a broader ecosystem play, enabling some to compound into trillion-dollar companies.”
Locally, experts had predicted that Amazon’s entry into SA will shake-up the sector – bringing opportunities and challenges for local e-commerce players.
Intense rivalry is unfolding in the local online marketplaces space, with contenders Takealot, Bob Shop, Everyshop and Massmart-owned Makro Marketplace racing to introduce innovative technologies on their platforms.
“I think the increased competition can add value to the e-commerce environment and will force everyone to up their game and offer better services and prices – which will ultimately benefit consumers and grow the e-commerce sector – and that’s good for everyone,” said Yaeesh Moosa, head of marketplace at Takealot.com, during an Insaka e-commerce virtual summit roundtable, last year.
AI is already making online marketplace operations significantly more efficient.
Three key trends identified in the report are:
- The AI app store is now open – as models and infrastructure are rapidly commoditising, this is leading to explosive growth and innovation at the application layer. We’re now closer to the value-accrual inversion between apps and infrastructure than many expected.
- The future of e-commerce is agentic – shopping agents are now poised to make autonomous purchasing decisions for shoppers.
- Technology ecosystems are best positioned to win – they unlock a unique set of vast, interconnected data at scale, primed for AI innovation.
“Some platforms, such as Amazon, are already allowing AI agents to perform tasks for shoppers at a verbal command, such as ‘buy me a pair of new shoes for my race next month’, or offer consumers advice on shopping preferences. The true value of any application lies in its data and metadata − the oxygen fuelling AI’s potential. In the age of AI, only the biggest platforms will have the (data) scale required to win,” notes the report.
However, it cautions that currently, adoption of emerging AI technologies in the e-commerce space is still in its very early days. Some first applications are emerging. From personalised product recommendations, to AI-powered customer support and fraud prevention, the potential applications are vast.
“Yet, despite all the technological advancements, today’s digital marketplaces are still not frictionless. Consumers still spend significant time searching, comparing and selecting. Meanwhile, sellers tirelessly work to optimise their offerings, fulfil orders, administer returns and refine their supply chain.
“With time, marketplaces will become even better. As these first AI applications help remove layers of friction, they will supercharge marketplace network effects, leading to more listings, seamless payment processes and overall efficiency.”
The report points to the rise of social commerce as another trend. This is unbundling the traditional marketplace model – as the selling of products and services directly through social media platforms escalates.
Social media platforms, such as TikTok, Instagram and Facebook, are seeing a rise in the fusion of content and commerce − fast expanding e-commerce possibilities beyond traditional web and app channels.
The global micro-influencer economy is also leading to a huge uptake in social commerce, as more brands − such as Temu, Shein, Sephora and Qurate Retail Group − prioritise their social media strategies to sell and market their products, it says.
AI applications are accelerating marketplace network effects.
