Published: May 2025

Type: eCommerce

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Liam Quinn
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Barrett Ahern
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The Future of Commerce – Emerging Trends, Technologies and The State of AI

At Pulse eCommerce Summit ‘25, we hosted a session titled The Future of Commerce - Emerging Trends, Technologies & the State of AI, exploring where commerce is heading and what this evolution means for brands, platforms, and consumers alike. With a strong focus on AI, the session covered everything from the rise of low- and no-code tools and shifts in technical architecture to changing consumer expectations and the broader impact of AI on retail.

Below, we’ll outline the key takeaways from the session, including the rise of generative content, the shift toward agentic AI, the growing importance of LLM visibility, and the early impact of tools like Model Context Protocol - along with some predictions for the year ahead and why brands should adapt.

AI in 2025: From novelty to necessity

Over the past year, AI has progressed from interesting Large Language Models (LLMs) and prompting experiments, with some automated Linkedin posts, into production-ready tools used across industries. We’ve begun moving beyond the hype - and towards tangible business impact.

AI is now maturing across distinct pillars, each evolving at different speeds and creating new commercial opportunities. We’re going to cover a few of the areas changing most rapidly - and those likely to have the biggest impact on eCommerce.

Machine learning and data analysis

Machine learning isn’t new. It's been around for decades, steadily improving and powering many of the tech systems we use - from Google and Facebook Ads, Klevu, Dynamic Yield, Rebuy, and more. These tools analyse behavioral patterns and associated data to optimise ads and product placements, ensuring the right content is served at the right times.

What’s changing now:

  • The introduction of LLM commentary and interaction is democratising data, lowering the barrier to people that can interrogate and gain insights from data sets.
  • Brands (and individuals within them that are not data scientists) can now gain insights conversationally, rather than relying on deep SQL expertise.
  • We’re seeing these applications in platforms like Census, transforming areas such as inventory management, forecasting, benchmarking and international trend analysis.

Generative AI

The past 12 - 18 months have seen explosive growth in generative AI capabilities. Tools that once simply produced decent blog posts can now create production-grade, on-brand written content, images, videos, and even development code.

  • Text-based content:

    Specialised Generative AI tools like ChatGPT, Gemini, Claude, Jasper, Copy.ai, and EMFAS are being adopted by marketing teams to scale and localise on-site content production and generate marketing copy.

    Brands such as Represent and Current Body have used AI to manage content translations and Seraphine have leveraged EMFAS to generate localised product descriptions at scale, while maintaining a newly defined tone-of-voice.
  • Visual content:

    Midjourney, Adobe Firefly, Canva AI, and Greenroom are unlocking product imagery for eCommerce brands. Marketers can now create lifestyle imagery for paid media and social, A/B test personalised model shots for gender, race, or size, and brands can generate variant colour, pattern, and style changes from product flatlays. This not only saves on expensive photoshoot budgets, but also reduces post-production lead times.

    Brands like Hugo Boss, Mango, and Levi’s have been early adopters of AI-generated imagery. H&M, in particular, has pioneered the use of AI-generated ‘digital twins’ of models for marketing campaigns - creating AI replicas of 30 models to generate alternative image content without the need for traditional photoshoots.

  • Web / software development:

    Tools like Cursor, Windsurf and Github Copilot are helping development teams write boilerplate and refactor legacy code, write unit tests and documentation, and even troubleshoot and debug. This is already freeing up significant time within development teams - with companies like Alibaba and Klarna getting press attention for restructuring their development approaches and integrating AI early.

    Meanwhile, tools like shopdev.ai and storefront.dev are emerging to help generate Shopify Liquid themes and sections using generative AI. Shopify itself is also rolling out AI-powered functionality directly within the platform, enabling users to generate content and theme code:

SEO and Brand visibility impact within LLMs

While traditional SEO is far from dead, the rise of LLMs and features like Google’s AI Overviews (AIOs) are reshaping organic brand visibility.

Google hit 5 trillion searches in 2024 (up 20% YoY). Search volume on Google is still growing (Google Search still outpaces ChatGPT search-like queries by 400x) but user behaviour is shifting.

Source: SparkToro

Brands need to rethink how they show up when the answer is given before the click. For searches where Google’s AIOs were present:

  • Click-through rate dropped 12% for paid ads

  • Click-through rate dropped 70% for organic links

  • Users are getting answers directly on the search page

Source: Seer Interactive

Enter GEO (Generative Engine Optimisation). The time is coming to optimise for LLM AI summaries, not just blue links.

  • Implement structured data and schema. LLMs thrive on knowledge graphs - structured relationships between entities. LLMs understand your content more clearly and accurately by giving it a semantic framework.

  • Experience, Expertise, Authoritativeness, and Trustworthiness (E-E-A-T) is as important as ever. Traditionally used by Google to evaluate the credibility and usefulness of content, LLMs are more likely to surface content from trustworthy, relevant, and authoritative entities in their summaries.

  • Platforms like AthenaHQ allow businesses to track brand presence in LLMs like ChatGPT and Perplexity.

It’s still very early days, but we’ve started to have conversations with brands that are at least thinking about this impact on their visibility.

Agentic AI

Agentic AI is set to become the biggest game changer for the industry in the next 12 months. Shorter term for merchants, agencies and vendors but also longer term for the end consumer. Unlike traditional AI tools that wait for input, agentic systems act autonomously - they can plan, reason, and execute multi-step tasks without human oversight.

Emerging applications:

  • Backend operations: AI agents handle tasks like campaign adjustments, product sequencing, and personalised promotions around the clock. For instance, an AI agent can detect a stockout trend at 2 a.m. and reconfigure product visibility across markets before the team starts their day.

  • Proactive customer service: AI agents can identify issues such as delayed deliveries and proactively reach out to customers, explain the situation, and offer goodwill vouchers before the customer is even aware of the problem. This not only enhances efficiency but also protects the brand's reputation at scale.

  • Concierge commerce: Shopping agents like Amazon's new 'Buy For Me' agent allow users to purchase products from third-party websites without leaving its mobile app. Shopping AI Agents will enable AI to complete purchase on the user’s behalf, including payment and shipping details, which are securely encrypted.

MCP: Model Context Protocol

Model Context Protocol is the latest buzzword that you may not have heard yet but certainly will in the coming months. It’s about integrating AI into specific business environments and contexts, allowing it to make more informed decisions than current generic models trained on the whole of the web.

- AI models gain access to deep contextual data like products, sales history, and external APIs.
- With MCP, AI agents become genuine members of your team - trained on your processes, operating in your systems, with your toolsets and your first party data.
- Shopify and Google are just two platforms that have already rolled out their own MCP in some form, to open up parts of their APIs for AI Agents (such as Claude) to access directly.


Predictions for the year ahead

AI adoption is set to grow even faster. Here’s what we foresee:
1. Over 50% of product assets will be AI-generated, but this will lead to opportunity for human creativity to be a major differentiator for standout brands.
2. Platforms like Shopify and Wix will continue reducing the need for lower-mid level development through generative tools.
3. Configuration tasks (app setup, data import, hygiene checks) will soon become fully automated.
4. AI agents will become as commonplace as ChatGPT is today. The adoption of this strategically Business-wide will determine success.

Final thoughts

AI is no longer an experiment, it's becoming a core business capability and will start becoming a more noticeable competitive advantage. Prior to the Pulse eCommerce Summit ‘25, we sent a survey to 100+ eCommerce brands to get an idea of priorities, trends and resource allocations for the year. 67% of brands confirmed having no existing company-wide AI strategy, and the majority of the remaining 33% used AI solely for ChatGPT or Gemini interface. It’s clear that the companies who adapt with AI creatively and strategically will define the next era of commerce.

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