AI is taking on a more active role in e-commerce as South Korean startup Waddle expands into the U.S. AI is taking on a more active role in e-commerce as South Korean startup Waddle expands into the U.S. market with its commerce agent “Gentoo.”
Unlike traditional chatbots, Gentoo operates as a digital salesperson, engaging users in real time, identifying hesitation points, and guiding them toward purchase decisions.
This shift is redefining how products are displayed to users, turning static storefronts into more interactive and conversion-driven experiences.
From Static Pages to Intelligent Shopping Experiences
One of the biggest changes introduced by AI commerce is how online stores manage product display.
Instead of relying on fixed layouts and manual merchandising, Gentoo adapts how products are displayed based on user behavior and intent. It can initiate conversations, highlight relevant items, and guide users through complex product choices.
At the same time, the system functions as an AI store manager, helping retailers optimise both customer experience and overall display performance.
Closing the Conversion Gap
A long-standing challenge in e-commerce is the gap between browsing and purchasing. Many users explore products but leave before completing transactions.
Waddle addresses this through real-time conversational engagement, improving how products are displayed and discovered based on user needs.
This approach mirrors the experience of an in-store salesperson, bringing personalised guidance into digital environments while improving conversion rates.
Early Signals from the U.S. Market
Waddle’s expansion into the U.S. has already shown early traction. Within two months, the company secured 11 clients and engaged with more than 260 prospective customers.
The company also benefits from its collaboration with OpenAI, including winning a global hackathon and maintaining close ties with its developer ecosystem.
These milestones reinforce the growing demand for AI-driven commerce solutions.
Data and the Future of Product Display
According to the company, data is the key differentiator. Modern e-commerce environments combine text, images, video, and behavioral signals – requiring more than simple conversational responses.
By leveraging contextual data, Gentoo improves how products are displayed in real time, delivering more accurate recommendations and more relevant shopping experiences.
Looking ahead, trends such as “vibe shopping” suggest that product display will increasingly be shaped by emotion, mood, and overall experience – not just price or specifications.
The recent deadlock at the World Trade Organization (WTO) over e-commerce duties may sound technical. It is not. What we are witnessing is a fundamental disagreement about the rules of the digital economy and, more importantly, about who gets to capture its value.
At the center of the debate is the WTO’s long-standing e-commerce moratorium, a rule that prevents countries from imposing customs duties on electronic transmissions such as software, streaming, and cloud services. After nearly 30 years in place, this rule is now under serious scrutiny.
What Is the WTO E-Commerce Moratorium?
The WTO e-commerce moratorium, first introduced in 1998, ensures that digital products and services can cross borders without tariffs.
However, the rule does not apply to physical goods.
If you buy a piece of furniture from abroad, it is subject to tax. If you download software from abroad, it is not. This is the core issue. A container of chairs crossing a border is taxed, while a million-dollar SaaS subscription crossing digitally is not taxed
From a policy standpoint, this asymmetry is becoming harder to justify, especially for emerging economies.
Why Brazil, Türkiye, India and Others Said “No” to the WTO E-Commerce Deal
The WTO talks collapsed after Brazil, supported by countries such as Türkiye and aligned with India’s broader stance, refused to agree to a long-term extension of the moratorium.
Their argument is actually quite rational:
The digital economy is still evolving
Governments should not give up taxation rights too early
Digital imports are growing rapidly, but remain untaxed
In simple terms: “Why should we permanently give up the right to tax the fastest-growing part of the global economy?”
This is not protectionism. It is strategic hesitation.
Why the U.S. and EU Support Extending the Moratorium
The United States and European Union strongly advocate for extending the WTO e-commerce moratorium, preferably on a long-term or permanent basis.
Their motivations are clear:
They dominate global digital service exports
Their companies rely on frictionless cross-border data flows
Tariffs on digital services would increase costs and reduce scalability
For these economies, maintaining a duty-free digital environment is essential for sustaining global competitiveness. For them, this rule is not just convenient, but also structural. Without it, global scaling slows down, SaaS becomes more expensive, and platforms face fragmented regulations.
The Real Conflict: Digital Trade vs Traditional Trade
The WTO deadlock reflects a deeper structural issue in global trade:
Traditional Trade
Digital Trade
Physical goods
Intangible services
Subject to tariffs
Currently duty-free
Border-based taxation
Borderless delivery
Emerging economies argue that this imbalance creates an unequal playing field. If physical goods are taxed, why should digital goods remain exempt?
This is often framed as a “developed vs developing” conflict. That is only partially true. The deeper divide is this:
Digital exporters want open, duty-free flows
Digital importers want the right to regulate and tax
This is a clash between two economic realities, one built on platforms and data, and the other still balancing industry, revenue, and transition.
Why This Matters for E-Commerce
For the global e-commerce ecosystem, the implications are significant.
If the moratorium is not extended:
Countries may introduce digital import duties
Cross-border SaaS and platform costs could increase
E-commerce operations could become fragmented by regulation
This would directly impact:
Online marketplaces
Subscription-based business models
Cross-border digital service providers
For regions like the UAE, which position themselves as global e-commerce hubs, maintaining predictable digital trade rules is critical; this could introduce friction into what has so far been a relatively seamless system.
What Happens Next in WTO Negotiations?
Following the deadlock, WTO members will continue discussions in Geneva. The most likely outcome is a short-term extension (2 years), rather than a long-term agreement. However, this does not resolve the underlying issue. The central question remains: Should digital trade be treated the same as physical trade?
From where I stand, working at the intersection of e-commerce, platforms, and global trade, this debate is inevitable. And frankly, overdue. For years, the digital economy has operated in a kind of regulatory grey zone: Borderless, Frictionless, largely untaxed at the transmission level. That model helped accelerate growth. But it also created an imbalance.
The question now is not whether rules will change. They will. The real question is, will those rules enable growth—or fragment it?
The WTO deadlock is often described as a failure. I see it differently. The WTO e-commerce moratorium deadlock is not a temporary disruption. It is a reflection of a broader transformation in the global economy.
We are moving from trade in goods to trade in data and from physical borders to digital jurisdictions
The outcome of this debate will shape:
The cost of digital services
The scalability of e-commerce platforms
The structure of global trade itself
The real question is no longer whether digital trade rules will change. It is, how and in whose favour they will be rewritten.
