European AI in E-commerce Market to Reach $7,173.4 Million by 2035, Driven by Generative AI Adoption and Platform Innovation

European AI in e-commerce market was valued at $1,602.7 million in 2025 and is projected to reach $7,173.4 million by 2035, growing at a CAGR of 14.7% during the forecast period (2026-2035). The adoption of generative AI tools is gaining momentum across Europe’s e-commerce sector, particularly in solutions that support sellers with automated product listings, descriptions, and catalog management. These tools enable faster onboarding of products across multiple languages and marketplaces, improving scalability for both large retailers and small merchants. For instance, in June 2024, Amazon announced the expansion of its generative AI–based product listing tools to sellers across Europe, making the capabilities available in France, Germany, Italy, Spain, and the United Kingdom. The tools allow sellers to create and enhance product listings using limited inputs such as keywords or images, supporting faster listing creation and improved content quality. Amazon reported that more than 30,000 European selling partners have already used one or more of these generative AI features, reflecting increasing adoption of AI-driven tools across the region’s e-commerce ecosystem.

Browse the full report description of “European AI in E-Commerce Market Size, Share & Trends Analysis Report by (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)” of https://www.omrglobal.com/industry-reports/europe-ai-in-e-commerce-market

 Furthermore, generative AI is being incorporated into marketing workflows, enabling faster development and deployment of campaigns across multiple digital channels. Automation of content generation and personalization contribute to lower operational and creative costs. For instance, in May 2025, European online fashion retailer Zalando reported the use of generative artificial intelligence to accelerate the production of marketing imagery for its app and website, aiming to respond more quickly to short-lived fashion trends. The company stated that AI reduced image production timelines from several weeks to a few days and lowered associated costs significantly, while improving customer engagement through timely and relevant content. Zalando has also introduced AI-generated digital twins of models for campaigns and product pages, reflecting a broader shift within the European fashion retail sector toward AI-enabled marketing efficiency. Improved data availability and advancements in AI model performance continue to support wider deployment.

In 2025, 20.0% of EU enterprises with 10 or more employees reported using artificial intelligence technologies in their operations, representing an increase of 6.5% from 13.5% in 2024. This marks a significant rise compared with earlier years, up from 7.7% in 2021 and 8.1% in 2023, indicating accelerating AI adoption across EU businesses. Adoption levels were highest in Denmark, Finland, and Sweden, while Romania, Poland, and Bulgaria recorded the lowest shares. At the same time, e-commerce platforms across Europe have been steadily introducing new AI models to enhance customer service capabilities, further supporting overall market growth.

 Expansion of Agentic AI Across European E-commerce

The major companies operating in the European AI in e-commerce market include Amazon Web Services, Inc., Google LLC, IBM Corp., Oracle Corp. and Microsoft Corp among others. Both large platforms and emerging startups are prioritizing AI systems that improve operational efficiency, automate support, and directly contribute to revenue generation in cross-border and digital trade.

• In November 2025, Alibaba.com launched “AI Mode” at its CoCreate Europe event in London, introducing agentic artificial intelligence directly into its B2B e-commerce platform to support sourcing, supplier evaluation, and trade execution. The feature, scheduled to roll out in December, builds on the company’s AI-driven search capabilities and aims to automate key stages of cross-border transactions.

• In September 2025, Konvo AI raised €3.5 million to advance the development of autonomous AI agents for e-commerce platforms, designed to interact with customers, recommend products, and handle logistics-related queries. The company reported that its agents automate around 65% of customer inquiries, with approximately 8% of support interactions resulting in completed purchases

 Market Coverage

• The market number available for – 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
  • Component
  • Deployment Mode
  • By Application
• Competitive Landscape - Amazon Web Services, Inc., Google LLC, IBM Corp., Oracle Corp. and Microsoft Corp among others.

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

European AI in E-Commerce Market Report Segment

Component

• Software
• Services

Deployment Mode

• Cloud
• On-Premises

By Application

• Warehouse Automation
• Supply Chain Analysis
• Customer Relationship Management
• Product Recommendation
• Merchandizing
• Fake Review Analysis
• Customer Service

European AI in E-Commerce Market Report Segment by Region

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

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