AI Shopping Assistant Market Size & Outlook, 2026-2034

AI Shopping Assistant Market Overview

The global AI shopping assistant market size is valued at USD 4.26 billion in 2025 and is estimated to reach USD 36.38 billion by 2034, growing at a CAGR of 26.8% during the forecast period. The market growth is supported by the increasing integration of advanced AI technologies such as natural language processing, computer vision, and multimodal interaction, which enhance personalized shopping experiences, streamline product discovery, and encourage businesses to adopt intelligent commerce solutions proactively.

Key Market Trends & Insights

• North America dominated the market with a revenue share of 38.42% in 2025.
• Asia Pacific is anticipated to grow at the fastest CAGR of 29.5% during the forecast period.
• Based on type, the voice-based segment held the highest market share of 31.8% in 2025.
• By technology, the Natural Language Processing (NLP) segment is estimated to register the fastest CAGR growth of 28.7%.
• Based on application, the retail segment dominated the market in 2025.
• U.S. dominates the AI shopping assistant market, valued at USD 1.45 billion in 2024 and reaching USD 1.62 billion in 2025.

Table: U.S AI shopping assistant market Size (USD Million)

Source: Straits Research

Market Size & Forecast

• 2025 Market Size: USD 4.26 billion
• 2034 Projected Market Size: USD 36.38 billion
• CAGR (2026-2034): 26.8%
• Dominating Region: North America
• Fastest-Growing Region: Asia Pacific

The global market encompasses a wide array of intelligent commerce solutions, such as voice-based assistants, text-based chatbots, visual search assistants, and multimodal interaction platforms. These solutions are provided across several models of technologies, such as natural language processing (NLP), machine learning (ML), computer vision (CV), and integration technologies. In addition, AI shopping assistants are used in various application environments, such as retail, healthcare, travel, media, and other business domains, to facilitate businesses in improving customer interaction, product discovery, and optimizing the overall shopping experience through overall, technology-based platforms within global market.

Latest Market Trends

Transition from traditional retail interactions to AI-based personal shopping

AI shopping guides are remodeling traditional shopping experiences into deep digital spaces that support voice, text, visual, and multimodal interaction. Consumers were once held back by thoughtless product searching, dubious recommendations, and poor support through channels whose adverse effect on engagement and conversion was reflective. AI-driven platforms, with their modern time-of-experience product recommendations, personalized offers, and continuous cross-channel assistance, enable a seamless and engaging experience. The likes of such organizations as the National Retail Federation (NRF) have indicated that AI personalization technology drives customer purchase frequency, interaction, and retention, the beginning of the journey to data-driven, consumer-centric commerce.

Rising adoption of AI shopping assistants across government supported digital initiatives

Government agencies and industry organizations are actively supporting digital transformation in business, driving accelerated adoption of AI. As per the U.S. Small Business Administration (SBA), over 45% of North American mid-sized retail firms implemented AI-enabled customer interaction tools by 2024. Similarly, initiatives by India's Ministry of Commerce and Industry have encouraged the use of AI solutions within e-commerce using digital stimulus and skill development programs. This trend reflects how AI shopping assistants are migrating from specialist pilot projects to mass adoption, allowing for regulatory compliance and increased digital capability in retail and service businesses.

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Market Driver

Incentives for adoption of AI by the government

Governments all over the world are increasingly offering financial incentives, grants, and regulations to promote AI implementation in business and become a key growth driver for the AI shopping assistant market. In America, the National Institute of Standards and Technology (NIST) has established initiatives to encourage AI adoption among small and medium retailers by financing technology upgrades and employee training. The European Union has also allocated budgets for AI solutions for digital commerce and customer service. The initiatives seek to drive the installation of AI shopping assistants at a lower cost and with technical support. These retailers get discounted software licensing, employee training in AI, and cloud infrastructure access. Singapore and South Korea are also backing AI retail solutions with innovation grants and government-private collaborations that enable companies to deploy clever assistants en masse. Governments' reports indicate that these incentives have resulted in a significant rise in adoption in new and mid-sized retailers. The incentives boost competitiveness and propel broader market uptake of AI shopping assistants. This increased emphasis on policy-driven AI adoption guarantees even small businesses undertake top-shelf digital tools efficiently. Overall, government-supported incentives are expanding the coverage of AI shopping assistants, driving investment, and fueling long-term market growth worldwide.

Market Restraint

Incompatibility with Legacy Retail Systems

A limitation in the AI shopping assistant market is that the integration of AI solutions into current legacy retail infrastructure is difficult, which means seamless integration is not possible. According to Strada and Censuswide, over 40% of European and North American retailers employ outdated point-of-sale systems, ERP software, and inventory management platforms that are not AI-compatible. This interoperability results in longer deployment time, higher cost of customization, and system downtime during implementation.

Most AI shopping assistants need connectivity to the cloud in standardized APIs, something current systems hardly provide without complete overhaul. As a result, retailers are precluded from realizing end-to-end personalization, cross-channel synchronization, and analytics-based decision-making. Small chains with limited IT capabilities are hit hard, since it is too expensive and operationally burdensome to make current systems current. IDC reports show that such integration issues hinder return on investment and reduce the overall efficacy of AI-powered shopping experiences. Poor interoperability is therefore a serious hindrance, slowing the rate at which AI shopping assistants can scale within the retail sector.

Market Opportunity

Convergence with national e-commerce promotion programs

The convergence of AI shopping assistants with national e-commerce promotion programs is providing enormous market growth opportunities. In Canada, Innovation, Science and Economic Development Canada (ISED) launched the "Digital Main Street Initiative" to assist retailers in adopting digital solutions that enhance online customer interactions and personalized shopping experiences. Brazil's Ministry of Economy has also introduced programs to encourage small and medium enterprises to implement intelligent commerce platforms for improved targeting of customers and sales optimization. Such programs enable retailers to boost online exposure, improve conversion rates, and access government-sponsored digital marketplaces. Participation in such programs provides access to finance, technical assistance, and benchmarking performance, offsetting the risks of adoption to firms. Retailers are able to roll out AI-powered shopping assistants across multiple channels and geographies through such programs. This is particularly significant in developing economies where government incentives accelerate digitalization. Overall, participating in national e-commerce promotion programs offers retailers the chance to foster competitiveness, generate top-line growth, and deliver more compelling shopping experiences for consumers.

Regional Analysis

North America led the market in 2025 with a 38.42% market share. This is due to the established presence of advanced retail infrastructure, high penetration of smartphones, and common use of digital commerce platforms. Furthermore, North America is supported by large government and industry efforts inducing AI adoption in retail in the form of data standardization programs, consumer experience maximization initiatives, and training programs for workers, which fuel AI shopping assistant adoption. All these are together propelling the large-scale implementation of AI solutions in both online and offline channels of retail.

The U.S. AI shopping assistant market is propelled by massive retail digitization and rising calls for customized shopping experiences. According to the National Institute of Standards and Technology (NIST), over 45% of the mid-size US retailers had adopted AI-driven shopping assistants up to 2025 to enhance customer interaction, enhance conversion rates, and make checkout processes easier. The convergence of government-sponsored artificial intelligence initiatives, premium consumer digital sophistication, and omnichannel retail investment is still fueling optimism and driving market growth in the U.S.

Asia Pacific Market Insights

Asia Pacific is coming forth as the fastest-growing region with a CAGR of 29.5% between 2026–2034, driven by nations like China, India, and South Korea, which are quickly embracing AI-based retail solutions. Robust government initiatives towards digitalization, including India's Digital Commerce program and South Korea's Smart Retail initiative, combined with increasing smartphone penetration and e-commerce usage, is fueling AI shopping assistant implementation. These local government initiatives towards digital retail innovation and investment by the private sector are further increasing market size in Asia Pacific.

The Indian AI shopping assistant market is growing at a very fast pace with government-led digitalization initiatives and growth of e-commerce websites. Initiatives like Ministry of Commerce and Industry grants to implement AI in retailing and encouragement from the Digital India initiative have aided retailers in embracing AI assistants for personal interest-based product recommendations, virtual customer support, and omnichannel touchpoints-based interaction. E-commerce leaders like Flipkart and Amazon India have been placing larger bets on AI-driven solutions to enhance customer experience, showcasing scalability and effectiveness. These initiatives are changing India into a strategic growth center for AI shopping assistants worldwide.

Regional Market share (%) in 2025

Source: Straits Research

Europe Market Outlook

Europe is witnessing steady growth in the AI shopping assistant market due to increasing adoption of e-commerce, strong retail digitization activities, and government initiative to promote AI adoption in the region. The Netherlands, France, and Germany are leading adoption of AI in retail with initiatives leaning towards data-driven personalization, omnichannel integration, and consumer engagement enhancement. These initiatives, along with increased customer digital literacy and infrastructure readiness, are making retailers use AI shop assistants for optimizing customer experience and boosting sales.

Development in the U.K. market of AI shop assistants is driven by government backed digital trade programs and retail innovation programs. More than 50% of mid-sized retail businesses implemented AI-powered customer engagement solutions by 2025 to enhance product suggestions, simplify online buying, and enhance after-purchase support, as per the Department for Digital, Culture, Media & Sport (DCMS). Initiatives like the UK Innovation Strategy offer grants and technology assistance to implement AI solutions across online and offline retail channels. All these efforts, coupled with high consumer adoption of digital channels, are increasingly making market penetration more penetrating and enabling retailers to provide more personalized and convenient shopping experiences.

Latin America Market Insights

The Latin American AI shopping assistant market is expanding as Brazil, Mexico, and Argentina adopt digital retail strategies to motivate online purchasing processes. Retailers are increasingly leveraging AI assistants to enhance personalized product recommendations, chat assistance, and fast checkout procedures, filling gaps in customer interaction and work efficiency.

Brazil AI shopping assistant market is expanding with leading e-commerce platforms and offline stores adopting intelligent commerce solutions. Government efforts that promote digital growth, like the Brazilian Digital Commerce Promotion initiatives, are helping retailers adopt AI solutions on a large scale. Leading companies like Magazine Luiza and Mercado Libre have adopted AI assistants to simplify product search, enhance customer engagement, and augment conversion rates, expanding the market across the country.

Middle East and Africa Market Insights

The Middle East and Africa AI shopping assistant market is expanding with government and private investment in smart retail solutions and digital commerce infrastructure. The UAE, Saudi Arabia, and South Africa are directly promoting AI adoption with innovation centers and funding programs to enhance customer experience and effectiveness of retail.

The UAE AI shopping assistant market is growing with government-backed smart city plans and retail digitalization programs allowing the adoption of AI solutions. Dubai and Abu Dhabi merchants employ AI assistants for product recommendations, virtual store assistance, and innovative customer care. Initiatives like the Dubai Smart Retail Strategy provide funding and infrastructure facilities, enabling broader take-up and positioning the UAE as a top regional hub for AI-driven commerce solutions.

Type Insights

The voice segment dominated the AI shopping assistant market with a 31.8% revenue market share in 2025. The trend is influenced by increasing consumer demand for hands-free, interactive retailing with smart devices and virtual assistants providing easy product search, recommendation, and checkout assistance. Voice AI shopping assistants are most used in retail and e-commerce applications, where convenience and time are the dominant drivers of customer happiness and repeat purchase.

The multimodal segment shall increase at the highest growth of approximately 32.1% CAGR over the forecast period. Higher growth is fueled by growing demand for omnichannel consumer experience that integrates voice, text, and visual interaction to provide more personalized and context specific consumer interaction. Multimodal AI assistants by retailers enable more engaging product discovery, assisted purchase, and post-purchase support, optimizing conversion and loyalty in digital and physical channels.

By Type Market Share (%), 2025

Source: Straits Research

Technology Insights

The Natural Language Processing (NLP) segment will capture the highest CAGR of 28.7% over the forecast period. This is driven by rising demand for AI-driven shopping assistants that can interpret and process complex customer questions in real time, provide personalized suggestions and context-specific aid in multiple channels. NLP-based assistants increase the accuracy of conversations, minimize response time, and enhance customer satisfaction, and hence are a retailer's go-to option to improve engagement and conversion.

The Machine Learning (ML) category dominated the market share of 29.5% in 2025 as it can real-time track consumer behavior, forecast likes, and provide data-driven product suggestions. Its adoption is further supported by expanding availability of large-scale retail data sets and integration of ML algorithms onto existing commerce platforms, allowing retailers to optimize inventory management, personalize marketing efforts, and enhance the overall consumer purchasing experience.

Application Insights

The retail app category is expected to grow at the maximum compound annual growth rate of 27.8%, fueled by mounting pressures for customized shopping experiences and frictionless omnichannel interactions. With more consumers interacting with online and mobile commerce websites, retailers are implementing AI shopping assistants more and more in a bid to facilitate product discovery, offer instant recommendations, and facilitate checkout procedures. This increasing consumer desire for convenience and personalized experiences is well driving the uptake of AI solutions within the retail industry, enhancing engagement, conversion rates, and customer satisfaction.

Competitive Landscape

The global AI shopping assistant market is moderately fragmented, with the presence of established technology providers and specialized solution developers. Few players account for the major market share through their extensive product portfolio and integrated commerce platforms.

The major players in the market include Amazon.com, Inc., Alibaba Group Holding Limited, Shopify Inc and others. These industry players are competing with each other to gain a strong market foothold through the launch of new solutions, strategic partnerships, and mergers and acquisitions.

Klaviyo: An emerging market player

Klaviyo, which is the U.S. based company of a CRM and marketing automation software, is transforming the face of AI shopping assistants with real-time customer data and conversational AI. The company stood out for offering an in store experience that's personalized and mimics the responsiveness of top-performing in-store staff, now virtualized.

• In July 2025, Klaviyo announced the public beta launch of its AI Shopping Assistant, part of the Klaviyo Service suite, designed to help brands deliver personalized, always-on support using real-time session context, storefront knowledge, and marketing insights. This launch marked a major step in democratizing intelligent shopping experiences for brands beyond retail giants, positioning Klaviyo as a scalable solution for mid-sized and emerging e-commerce players.

Thus, Klaviyo emerged as a notable player in the global AI shopping assistant market, leveraging product innovation and real-time data integration to expand its footprint across digital retail ecosystems.

List of key players in AI Shopping Assistant Market

1. Amazon
2. Google
3. Microsoft
4. OpenAI
5. Shopify
6. Bloomreach
7. Rep
8. Octane AI
9. Gorgias
10. Syte
11. Vue.ai
12. Intercom
13. Algolia
14. LivePerson
15. Klevu
16. Octa
17. Tidio
18. Ada
19. Yotpo
20. Klaviyo
21. Others

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Strategic Initiatives

• September 2025: OpenAI launched an agentic commerce pilot within ChatGPT, enabling users to explore products, compare options, and plan purchases. This initiative represents a significant step toward integrating AI into the e-commerce transaction process.
• May 2025: Shopify released its "Editions Summer '25" update, introducing a suite of AI-powered tools designed to assist merchants in launching, operating, and scaling their online stores. These tools aim to enhance the efficiency and effectiveness of e-commerce businesses.
• February 2025: Amazon announced the launch of a new generative AI-powered Alexa, designed to be more conversational and proactive, capable of handling complex shopping requests and controlling smart home devices through more natural language.
• October 2024: Bloomreach announced the next generation of its marketing automation platform, Bloomreach Engagement, incorporating autonomous Loomi AI capabilities. This enhancement aims to reduce omnichannel campaign creation time and redefine the role of marketing teams.