Saturday, October 11, 2025

Application of AI, other emerging tech drives cross-border e-commerce innovation

Artificial intelligence (AI) empowers the cross-border e-commerce industry, enabling more efficient and intelligent global trade amid its significant potential for digitalization, according to a report published by the International Trade Centre (ITC).

The Global Digital Trade Development Report 2025 said the application of emerging technologies such as AI, the rise of platform-based enterprises, and the continuous improvement of digital infrastructure have acted as strong drivers for cross-border e-commerce innovation.

“These advancements enhanced supply–demand matching, optimized transaction processes, and improved business environments, igniting a new engine for global foreign trade,” it said.

Citing data, the report said the global AI market in e-commerce is expected to reach $45.7 billion by 2032.

It said this growth is largely driven by AI’s deep application in scenarios including customer service, personalized recommendations, and supply-chain optimization.

“Advances in large-model architectures, including the DeepSeek open-source ecosystem, lowered barriers for SMEs (small and medium enterprises) and spurred innovation across healthcare, education, finance, and cross-border data markets,” it added.

The report said that in Yiwu, China’s trading hub, nearly 30,000 merchants have collectively used AI applications more than 1 billion times daily, with local smart platforms integrating tools such as DeepSeek.

“As successive innovations reshape the digital landscape and algorithms mature, AI is rapidly embedding itself in cross-border e-commerce, transforming everything from content creation and product curation to customer service and supply chain logistics,” it said.

In market insights and ad optimization, German sellers on Amazon using the Amelia assistant saw their return on investment rise 40 percent, the report said.

In text processing, AI Listing efficiently translates text and extracts keywords, with more than a third of Amazon sellers and brands using it to write and optimize listings, 33 boosting conversion rates by 35 percent, it added.

The report said TikTok Shop’s Tako and Lazada’s LazzieChat provide 24/7 multilingual smart support in customer service, while new AI models intelligently match demand data, traffic, and factory production in digital supply chains.

It said e-commerce is projected to account for 23 percent of total retail sales worldwide by 2027.

Further, the report underscored the significant potential for trade digitalization.

It said although global digital trade grew substantially in 2020–2024, its share in international trade increased a modest 1.8 percentage points, suggesting that the digital transformation of global trade is still in its early stages.

Global digital trade was valued at $4.59 trillion in 2020, accounting for 20.1 percent of international trade ($22.8 trillion). By 2024, it had expanded to $7.23 trillion, representing 21.9 percent of international trade, estimated at $33 trillion.

“This indicates that a major portion of global trade – especially in goods – is still conducted through traditional, offline channels, highlighting considerable room for further digitalization,” the report added.

 

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