AI and the e-commerce revolution: How artificial intelligence is shaping the future of online marketplaces

The launch of DeepSeek will accelerate value creation at the application layer. One of the biggest impacts of the DeepSeek launch is that we are closer to the reversal of value accumulation between applications and infrastructure than many people expected.

DeepSeek has shown that models and infrastructure are rapidly becoming commoditized.

Most value creation will happen at the application and data layer. The world should be ready for a new generation of applications to emerge.

The future of e-commerce is agency.

New AI applications help strengthen market network effects. AI helps drive liquidity through more listings, higher transaction conversion rates, and more repeat purchases.

In the age of AI, only the largest platforms will have the (data) scale needed to win.

The next frontier: Artificial intelligence will make autonomous purchasing decisions for us.

The true value of any application lies in its data and metadata — the foundation of AI’s potential.

Ecosystems can unlock a unique, massive, and interconnected set of data ready for AI innovation.

To thrive in this age of AI, companies must adapt their technology stack accordingly.

Market conditions

Top Market Regions by Funding and Annual Growth Rate in 2024:

The United States was $11.6 billion, up 2% year-on-year.

India’s GDP was US$6 billion, up 61% year-on-year.

Europe was $5.5 billion, down 43% year-on-year.

Other regions in Asia: $2.2 billion, down 75% year-on-year

Middle East/Africa: $1.2 billion, down 44% year-on-year.

China was US$1.1 billion, down 29% year-on-year.

Latin America: US$956.9 million, up 21% year-on-year.

The average market decline was 37%.

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