Rakuten Supercharges Its Ecosystem with AI-Powered Shopping Assistant

A Bold Leap into the AI-Driven Future of E-Commerce

Rakuten Group, one of Japan’s largest digital conglomerates, is revamping its artificial intelligence (AI) strategy to redefine the future of online shopping. On July 30, the company announced an upgrade to its AI-based chat search service initially offered through its telecom division, Rakuten Mobile. This AI assistant—designed to interpret user preferences through natural language—will soon be integrated across the broader Rakuten ecosystem, including the flagship Rakuten Ichiba (Marketplace) and other services like travel and finance.

At the “Rakuten AI Optimism” event held in Yokohama, Rakuten’s charismatic CEO Hiroshi Mikitani unveiled this vision. He emphasized the company’s ambition to create an “AI agent” that customers interact with seamlessly—so naturally, in fact, that they may not even realize they’re using AI. This move underscores Rakuten’s broader strategy to combine internal data across services and cutting-edge AI to deepen user engagement and grow its economic sphere.

Currently, the upgraded AI assistant is available through Rakuten Link, a mobile app exclusive to Rakuten Mobile subscribers. Users can ask personalized questions like recommendations for fountain pens, and the AI will suggest products based on shopping history and personal tastes. The system also supports travel queries through Rakuten Travel, offering itinerary suggestions tailored to individual preferences.

Rakuten is building this AI infrastructure using a mix of small and large-scale language models (LLMs), including those with up to 7 billion parameters. The company’s LLM development has received backing from Japan’s Ministry of Economy, Trade, and Industry (METI), which has greenlit a new model development project launching in August.

Through this AI evolution, Rakuten is taking significant steps toward expanding its ecosystem by fusing real-time consumer data with intelligent search tools, ultimately aiming to boost loyalty and cross-service adoption.

What Undercode Say:

Rakuten’s latest move into AI is more than a feature upgrade—it’s a strategic masterstroke in platform integration and data monetization. This announcement signals that Rakuten is not merely trying to compete with global e-commerce giants like Amazon; it’s crafting a uniquely Japanese tech ecosystem rooted in seamless AI experiences.

What’s particularly savvy is Rakuten’s focus on user-specific AI recommendations. While Amazon dominates with brute-force logistics and product availability, Rakuten is leaning into personalization. Their integration of AI across retail, mobile, travel, and finance creates a closed-loop data environment where user behavior on one platform feeds insights into others. That’s a goldmine for predictive analytics and hyper-personalized marketing.

Moreover, by utilizing models that span from 1.5 billion to 7 billion parameters, Rakuten is hedging its AI bets. This flexible deployment allows the company to optimize performance depending on the context—smaller models for light tasks, larger LLMs for more complex queries. It’s also noteworthy that the development is supported by METI, giving Rakuten both credibility and resources. In a landscape where government support often dictates the pace of tech evolution, this partnership positions Rakuten favorably in Japan’s AI race.

And let’s not overlook the exclusivity element. By keeping the AI assistant tied to Rakuten Mobile’s “Rakuten Link” app, they incentivize telecom adoption. This tight vertical integration is reminiscent of Apple’s ecosystem—where hardware, software, and services work in unison to lock in the user.

The real test will come when this AI reaches Rakuten Ichiba in the fall. If successful, Rakuten could see a measurable uptick in purchase frequency and average order value, thanks to contextual, AI-driven nudges. Combined with loyalty points and financial products, it could trigger a virtuous loop of consumer dependency within the Rakuten economy.

This move could serve as a blueprint for other conglomerates looking to integrate AI without overwhelming the user with complexity. Rakuten isn’t just deploying AI—they’re embedding it into daily life, and doing so with a distinctly human touch.

🔍 Fact Checker Results

✅ Rakuten’s AI assistant is currently live via Rakuten Link for mobile subscribers.
✅ Hiroshi Mikitani publicly confirmed plans to bring AI to Rakuten Ichiba in the fall.
✅ METI is officially supporting Rakuten’s AI development initiative starting August 2025.

📊 Prediction

By mid-2026, Rakuten will likely roll out AI agents across all its major verticals—travel, banking, insurance, and even streaming—creating a unified smart assistant ecosystem. Expect Rakuten to begin monetizing this AI layer through sponsored recommendations and premium B2B services. If successful, their ecosystem could see a 20–30% rise in user retention and cross-service utilization.