As we look toward 2025, the landscape of traditional two-sided marketplaces is undergoing a significant transformation, evolving into complex, AI-powered ecosystems. A select group of clients from thoughtbot, who possess extensive experience in marketplace operations, have shared their insights and observations about this rapidly innovating space.

Jon Levinson, the co-founder and CEO of Claraa senior care platform designed to assist families in finding affordable and quality caregiversemphasized the fundamental premise of marketplaces: bringing buyers and sellers together. The marketplace is not a novel concept. It starts with can we bring buyers and sellers together? Now the question is how else can we add value, how does our position allow us to provide additional services? he stated.

Levinson's journey into this arena began during his tenure at Uber when he faced the daunting task of finding care for his ailing father. The challenges his family encountered during this process revealed a significant business opportunity: a platform that connects families in need with reliable and quality caregivers. This realization led him to collaborate with thoughtbot to develop the initial version of Claraa project that has grown and expanded to serve multiple states across the U.S.

However, Levinson quickly recognized that merely facilitating a connection between clients and caregivers was insufficient for building a sustainable business. Once connected, what additional value could Clara provide to ensure that families would continue to rely on their marketplace?

To address this challenge, Clara integrated artificial intelligence (AI) into their service offerings, enhancing the caregiver selection process to ensure better matches between families and caregivers. Furthermore, Clara introduced an emergency no-show program, utilizing AI to ensure that if a caregiver is unable to fulfill a scheduled appointment, another qualified caregiver can step in at the same time, thereby maintaining continuity of care.

Moreover, Clara has focused on streamlining payroll and other logistical needs for their clients. The platform ensures compliance with payroll regulations, facilitates accurate tax payments, guarantees timely caregiver compensation, and even helps caregivers build their credit scores, all while serving as a lead generator.

Looking to the future, Clara aspires to develop a mobile experience tailored specifically for caregivers, enabling them to manage their business needs while traveling between clients.

In a parallel development, Kate Adamson, co-founder of Folioa budding marketplace that connects hotels with suppliershighlighted the critical role of AI in transforming complex business processes. AI is making incredibly complex business processes less costly and easier to develop, Adamson noted. She pointed out a common pitfall for marketplaces: failing to generate sufficient demand. Where weve seen marketplaces fail is on the demand side. If buying is not happening then suppliers dont participate. Our goal is to onboard hotels first.

The supply chain for hotels has become increasingly intricate, as brand standards necessitate uniformity in the products offered across different locations. For instance, branded hotels are required to provide identical shower products and linens at all establishments. AI can play a pivotal role in matching suppliers to hotels that need products while still adhering to these stringent brand requirements.

Adamson expressed her enthusiasm for the potential of AI in this context, stating, This is where AI gets exciting. When the complexities are especially challenging, this is where natural language processing across a lot of information and constraints, in real-time, matters. That may not have been possible in the past.

Jed Carlson, the former CEO of Adwerxan advertising marketplace tailored for real estate agentsechoed similar sentiments. He described how AI enhances marketplace functionalities, stating, AI is super-powering everything that can be done on a marketplace. Whats been startling to me is that AI is as good as anything Ive ever seen humans do, in terms of its ability to improve your content, to use more data sources. AI can hack your brain at an entirely new level.

The genesis of Adwerx can be traced back to Carlsons previous venture, ReverbNation, which connected performers with venues while offering additional services such as artist profiles and promotional tools. Following the sale of ReverbNation in 2021, Carlson launched Adwerx, applying a similar model to the real estate sector and equipping realtors with tools to promote themselves like rock stars.

Furthermore, Carlson was instrumental in the development of NeighborhoodAlerts.com for Three-Ships, which connects residents with essential news and information from reliable sources like police departments and public works, steering clear of the sensationalism that pervades other platforms. The initiative later expanded to include data on new restaurants, housing market trends, severe weather updates, and home improvement promotions. By enhancing the value of the platform, user engagement increases, fostering numerous monetization opportunities.

The rapid evolution of marketplaces through technological advancements has been exhilarating, particularly as it leads to increasingly personalized and engaging user experiences. To summarize the key trends we're witnessing in the future of marketplace solutions:

• Marketplaces are transitioning into complex, AI-powered ecosystems that are hyper-personalized to meet user needs.
• AI is enhancing crucial elements, making them more tailored, efficient, and resilient while powering features like improved matching and helping users navigate intricate workflows.
• Once the primary use case is established, marketplaces are layering additional services and advanced matching systems to deliver ongoing value, leading to increased user engagement and the unlocking of new monetization opportunities.
• As marketplaces continue to evolve, those that successfully leverage AI to create smarter, more personalized, and service-rich experiences will emerge as the winners.

If you are currently working on the next generation of marketplace technology, thoughtbot stands ready to assist you in bringing your vision to fruition.