AI and market consolidation transform Czech e-commerce

The Czech e-commerce market is undergoing significant shifts due to the rise of artificial intelligence and market consolidation. Approximately 50,000 e-shops currently operate in the country, but the rate of new business creation slowed by roughly 7% in the first half of this year compared to the previous year.

AI presents a dual challenge for retailers. While it assists with content creation, such as product descriptions and translations, it also alters how consumers find products. Search engines are increasingly providing direct answers, which can lead to traffic drops of tens of percent for smaller retailers. Furthermore, the emergence of ‘Agentic Commerce’—where AI agents act as personal shoppers—is changing consumer behavior. These agents prioritize structured data, such as XML feeds and APIs, over traditional marketing elements like banners or slogans.

Experts suggest that the competitive advantage is shifting from the speed of content production to the ability to build a trustworthy brand and provide high-quality, structured product data. Small retailers, particularly those reselling cheap, unbranded goods without added value, are facing the highest risk of failure. Success in this evolving landscape may depend on specialization and the integration of AI with original products and superior customer service.