EBAY INCEBAY

AI technologies such as agents and chatbots may reduce effectiveness of eBay advertising products.

“We generate a meaningful amount of our revenue from our Promoted Listings (a first-party advertising offering) and, to a lesser extent, third-party advertising. To sustain or increase our advertising revenue, we must continue to provide customers with compelling advertising products, particularly in light of the potential for AI technologies to change how consumers search for products (e.g., using AI agents and chatbots). If customers perceive that our advertising products are not effective and do not drive quick sales as effectively as off-platform alternatives, including AI technologies such as agents and chatbots, they may not pay for these services and they may be driven to try competing platforms and alternatives. If we are unable to compete effectively for advertising spend, our business and operating results could be harmed.”

AI agents and chatbots may reduce consumer traffic to eBay if the platform is not optimized for them.

“For example, we are seeing consumers increasingly search for products using chatbots, virtual assistants and other Gen AI technologies powered by large language models instead of using traditional search engines. If AI technologies do not send referrals to eBay at the rate of traditional search engines for any reason, consumer traffic on our platforms could decrease, which would negatively impact on our business and results of operations. If eBay fails to innovate in ways that encourage consumers to visit our platforms and ensure that our platforms are optimized for AI agents, we could face decreased traffic.”

eBay collaborates with OpenAI on its AI agent Operator for autonomous shopping tasks.

“• eBay announced a collaboration with OpenAI on its AI agent, Operator, which acts as a virtual assistant, autonomously performing tasks, including online shopping, connecting users to eBay’s un ique inventory and expanding seller reach.”