PUBLISHER: Orion Market Research | PRODUCT CODE: 1877756
PUBLISHER: Orion Market Research | PRODUCT CODE: 1877756
North American AI in E-Commerce Market Size, Share & Trends Analysis Report by Component (Software and Services), by Deployment Mode (On-Premises and Cloud), and by Application (Warehouse Automation, Supply Chain Analysis, Customer Relationship Management, Product Recommendation, Merchandising, Fake Review Analysis, and Customer Service), Forecast Period (2026-2035)
Industry Overview
North American AI in e-commerce market was valued at $3.34 billion in 2025 and is projected to reach $14.37 billion by 2035, growing at a CAGR of 15.7% during the forecast period (2026-2035). The AI in the e-commerce market in North America is gaining momentum due to the adoption of AI-powered customer support and chatbots. The retailers are adopting and enhancing their customer support through AI-powered chatbots. These chatbots use intelligent chatbots and virtual assistants to enhance customer support, handle queries, complaints, and more in real time. For instance, CommerceIQ offers Nexis, an AI solution tailored for commerce marketing and sales professionals. Nexis is the platform that offers an AI platform that chats along with understanding, analyzes, and delivers results.
Market Dynamics
Visual and Voice Search Experiences Transforming Shopping
The AI-powered visual and voice search technologies are reforming the shopping experience positively across the North American region during the growth as the market during the forecast period. Visual search assists shoppers in uploading an image or using their camera to find exact or similar products instantly. Voice search assists shoppers in shopping with natural language commands, along with hands-free shopping. This makes the process faster and more intuitive. These voice search assistants are powered by AI assistants such as Alexa, Siri, and Google Assistant. For instance, in April 2025, Google announced the update of multimodal capabilities to its search-centric AI Mode chatbot. The update integrates a customized version of Gemini AI with the company's Lens image recognition technology. This update enables AI Mode Search users to upload or capture an image and receive a detailed response.
Dynamic Pricing & Promotions Reshaping E-Commerce Business
The e-commerce businesses in the region are adopting AI-based pricing and promotions to automatically adjust product prices and promotional offers in real time. These adjustments are based on various factors such as demand fluctuations, competitor pricing, inventory levels, along customer behavior. To improve businesses to maximize revenue and to improve profit margins are pushing e-commerce companies to adopt AI-based pricing & promotions engines, further propelling the market growth during the forecast period. For instance, in June 2025, Boohoo and PrettyLittleThing announced that they are depending on AI and letting AI set prices in real-time, reacting instantly to trends, demand, and what rivals are charging. The company teamed up with AI firm Peak to implement AI AI-based price engine.
Market Segmentation
Cloud Segment to Lead the Market with the Largest Share
North American AI in e-commerce industry is undergoing significant growth due to its benefits, such as flexibility, scalability, and cost efficiency. The market players across the region are advancing their cloud-based offerings, which is pushing retailers to quickly adopt them. The adoption of cloud-based technologies can help retailers to enhance scalability, improve personalization, and optimize operations. For instance, in September 2025, Google Cloud announced the Conversational Commerce agent, an AI-powered solution. The solution was launched on Vertex AI, which provides an advanced product discovery experience for business-to-consumer (B2C) retailers.
Product Recommendation: A Key Segment in Market Growth
The product recommendation segment is expected to be a strong driver of the North American AI in the e-commerce market during the forecast period. Retailers across the region are adopting AI-based recommendation engines to analyze customer behavior, purchase history, and browsing patterns. For instance, Sephora and Nike both leverage AI to create seamless, omnichannel experiences. These brands have launched AI recommendation engines to drive customer engagement and conversions. Sephora and Nike are using AI-powered recommendations both online and in-store, which improves customer satisfaction and increases sales.
The North American AI in e-commerce market is further divided by countries, including the US and Canada.
US Dominates the Market with a Major Share
The US region is expected to hold a major market share in the AI in E-Commerce market, as market players are advancing AI in E-Commerce technologies and supporting global brands to launch new product lines. In addition, the strong presence of market players, advanced digital infrastructure, high internet penetration, along widespread adoption of AI technologies by key retailers and e-commerce platforms will further boost the growth of the market during the forecast period. For instance, in July 2024, the US retailer Target announced that the company would deploy a GenAI chatbot across stores to serve and assist staff. Target is deploying an AI assistant that is trained on ChatGPT 4o to assist employees in daily operations.
The major companies operating in the North American AI in e-commerce market include Amazon Web Services, Adobe, Bluecore, Google, IBM, Salesforce, SAP, Oracle, Infosys, ViSenze Pte Ltd., and Tata Consultancy Services, among others. The companies are pursuing partnerships, collaborations, mergers, and acquisitions to drive innovation, expand product portfolios, enhance sustainability, and strengthen market presence. These strategies enable players to respond to the growing demand for personalized, efficient, and data-driven online shopping experiences while maintaining a competitive edge in the evolving North American AI in e-commerce market.
Recent Developments