How UK marketplaces are using AI to transform customer experience

We explore how AI is reshaping the way online platforms personalise shopping, strengthen data quality, enhance customer experiences and why this shift matters for retailers and brands today.

How UK marketplaces are using AI to transform customer experience

Artificial intelligence is reshaping the way online marketplaces operate, enabling faster, more intuitive and more personalised experiences for shoppers. In the UK, platforms including Amazon, eBay, Alibaba, ASOS and Etsy are investing heavily in AI to meet rising customer expectations, improve efficiency and remain competitive in an increasingly digital retail landscape.

Personalisation at scale

One of the most significant areas of progress is personalisation. ASOS has worked with Microsoft Azure OpenAI to introduce conversational shopping tools that help customers narrow choices, explore styles and receive tailored recommendations based on their browsing habits and current fashion trends. 

Etsy’s approach combines human curation with machine learning. Its “algotorial curation” model uses large language models to extend and refine human built product collections, ensuring recommendations remain visually coherent and relevant to each shopper’s taste.

Smarter search and better recommendations

AI is helping marketplaces refine product search and discovery. eBay UK uses behavioural data and purchase history to deliver targeted suggestions, while its image based search tool allows customers to upload a photo and instantly find similar products across the platform.

OnBuy, a fast growing UK marketplace, uses machine learning to optimise product listings and improve how items surface in search results. Although less visible than some of its competitors, its AI driven tools help sellers reach the right customers while improving search accuracy for buyers. 

At a recent CoCreate event in London, Alibaba showcased its AI driven sourcing tool, Accio. The tool aims to significantly reduce the time required to identify products and manufacturing partners, offering UK and European sellers a more efficient route to market.

Amazon UK: AI at scale

Amazon continues to set the pace for AI adoption across the retail sector. Its generative AI assistant, Rufus, launched in the UK in 2025 and supports product discovery by offering comparative insights and personalised recommendations within the shopping experience. 

Amazon UK: AI at scale

AI generated review highlights help customers understand sentiment and key product features more quickly, while Amazon Personalise supports more targeted marketing by generating refined audience segments and real time recommendations. 

In operations, Amazon is using AI to speed up fulfilment and improve accuracy. Warehouse management systems powered by machine learning help staff pick, pack and dispatch items more efficiently. 

Wellspring, Amazon’s generative AI mapping tool, is enhancing delivery precision by identifying building entrances and delivery points in complex urban environments. It has been tested in the UK and is being rolled out as part of the organisation’s wider investment programme. 

On the service side, Amazon Connect uses generative AI to support customer service teams with real time prompts, segmentation tools and tailored recommendations across communication channels.

AI powered customer service

AI enabled support tools have become standard across many UK marketplaces. Chatbots and virtual assistants provide immediate responses and 24 hour coverage, reducing pressure on customer service teams. 

Monzo, a leading UK digital bank, demonstrates how machine learning can support agents by identifying customer intent and enabling quicker, more empathetic resolutions. A model increasingly adopted across retail platforms.

Enhancing the shopping journey

Marketplaces are using AI to anticipate customer needs at different stages of their journey. Predictive analytics help forecast demand, personalise promotions and adjust pricing. These tools can identify when a customer may be about to leave a platform and trigger tailored incentives to retain them.

Trust and transparency

UK shoppers are increasingly comfortable with responsible AI use. Research from IBM found that most respondents across the UK and Ireland are open to AI enabled assistance provided organisations maintain transparency, protect data and give users control over how AI informs decisions

Looking ahead

Looking ahead

The UK AI market is forecast to reach £1 trillion by 2035, and the influence of AI on commerce will only grow. 

Marketplaces will continue to prioritise seamless, emotionally intelligent and context aware experiences that go beyond convenience to create meaningful value for shoppers.

The role of GS1 standards in AI driven marketplaces

As AI becomes embedded across retail, the importance of clear, structured and interoperable data increases. GS1 standards help ensure that AI systems across marketplaces have access to accurate and consistent information. 

1) Better product discovery and recommendations 

AI powered search and recommendation engines rely on clean, structured data. GTINs (Global Trade Item Numbers), combined with GS1 Web Vocabulary, ensure that products are uniquely identifiable across platforms. This allows AI tools to compare, match and recommend items with greater accuracy. 

2) More efficient logistics and fulfilment 

AI driven warehouse and delivery systems, such as those used by Amazon, benefit from standardised identifiers including GLNs (Global Location Numbers), SSCCs (Serial Shipping Container Codes) and Advanced Shipping Notices. These allow AI tools to understand how products move through the supply chain, reducing errors and improving fulfilment speed.

3) More reliable customer insights 

AI tools that summarise customer reviews or analyse sentiment depend on structured data. GTINs ensure that feedback is accurately linked to the correct products, producing more reliable insights for brands and retailers. 

4) Seamless omnichannel integration 

As marketplaces operate across digital and physical touchpoints, consistency becomes crucial. GS1 standards support this by ensuring that product and location data remains aligned across all channels, something that AI systems rely on to track journeys, manage stock and personalise experiences. 

5) A foundation for future innovation

With AI investment accelerating, marketplaces need data that remains trustworthy, scalable and interoperable. GS1 standards provide that foundation, enabling AI driven solutions to evolve without compromising accuracy or compatibility.

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