AI-powered search to reshape $595 billion e-commerce market by 2028
Euromonitor International forecasts AI-powered search will influence over $595 billion in global retail e-commerce by 2028, marking a fundamental shift in how consumers discover and purchase products online. This transformation compresses traditional browsing into single conversational interactions, threatening established brand visibility strategies.
Overview
Generative AI tools are accelerating digital commerce evolution. Over half of consumers now use GenAI for product recommendations, according to Euromonitor’s Voice of the Consumer: Lifestyles Survey 2025. An analysis of 8,700 US skincare brands reveals up to 50% face irrelevance risk as AI-driven discovery replaces conventional search.
Traditional search engine optimization is yielding to conversational relevance, eliminating fixed positioning slots that brands historically relied upon for visibility.
“Unlike earlier evolutions such as social commerce or livestreaming, AI-powered search is rewiring how consumers discover brands, evaluate choices and make purchasing decisions online.”
— Rabia Yasmeen, Global Insight Manager for E-Commerce at Euromonitor International
Analysis: This shift fundamentally alters competitive dynamics. Brands must optimize for AI recommendation algorithms rather than keyword rankings, requiring entirely new marketing infrastructure.
MENA e-commerce surged 30% in 2024, led by Saudi Arabia and UAE. Saudi Arabia’s e-commerce market targets $708 billion by 2033, driven by AI integration and Vision 2030 initiatives. Regional AI spending shows a 37% compound annual growth rate through 2026.
Why this matters
MENA fintech hubs in Riyadh and Dubai are positioned to integrate AI-powered search with digital payment infrastructure. As conversational commerce collapses traditional purchase funnels, regional payment providers must adapt checkout flows for instant AI-recommended transactions. This creates opportunities for embedded finance solutions that anticipate consumer intent before explicit product selection.
The $595 billion global figure represents immediate market capture potential for platforms combining AI discovery with frictionless payments. UAE platforms advancing AI personalization and Saudi Arabia’s Vision 2030 technology mandates align perfectly with this transition. Regional fintechs that embed themselves in AI shopping assistants gain structural advantages over traditional payment gateways.
What to watch: Monitor AI adoption rates among major KSA-UAE e-commerce platforms, regulatory frameworks for AI-driven transactions in Dubai International Financial Centre, and partnerships between regional payment processors and generative AI providers.
The convergence of MENA’s 30% e-commerce growth with AI-powered discovery mechanisms creates a compressed timeline for fintech adaptation. Players who integrate conversational commerce capabilities before market saturation will capture disproportionate share of the region’s accelerating digital retail expansion.
Conclusion
AI-powered search propels e-commerce toward a $595 billion milestone by 2028, compelling MENA fintechs to prioritize conversational technology integration. Regional players must act decisively to maintain competitive positioning in markets experiencing simultaneous AI adoption and explosive e-commerce growth.
Sources: Zawya, Euromonitor International, GCC Business Watch, Logistics Manager
