Mercado Libre: AI Drives 45% Revenue Growth in Q4 2025
Mercado Libre, Latin America’s leading e-commerce and fintech platform, reported a 45% year-over-year increase in net revenue in the fourth quarter of , driven by strategic investments in artificial intelligence and a rapidly expanding fintech business. The company’s success underscores a broader trend of technology companies leveraging AI to boost efficiency and revenue growth.
The Buenos Aires-based company, which operates in 18 countries across Latin America, saw its commerce and fintech segments benefit significantly from AI-powered tools. Martín de los Santos, Mercado Libre’s Chief Financial Officer, highlighted the “tangible impact of our investments in artificial intelligence” during an earnings call on .
AI Fuels Advertising and Merchant Growth
Within the commerce business, Mercado Libre experienced a 67% year-over-year surge in advertising revenue during the fourth quarter. This growth is directly attributable to the implementation of AI-powered bidding algorithms and automated campaign tools, which optimize ad placement and targeting. The company is effectively using AI to enhance the return on investment for advertisers on its platform.
The benefits of AI extend beyond advertising. Mercado Libre also reported higher total payment value (TPV) per merchant and reduced payback periods through the deployment of AI tools in its acquiring business. These tools enable the company to identify and prioritize high-value merchants, leading to more efficient resource allocation and increased revenue.
Enhancing the User Experience with AI
Mercado Libre is integrating AI into both the buyer and seller experience on its marketplace. In Argentina, the company launched an AI-enhanced search function that personalizes results based on individual user behavior, including search history and past transactions. This feature aims to improve product discovery and increase conversion rates by presenting users with items they are more likely to purchase. The system prioritizes preferred brands and value/premium options based on user data.
For sellers, Mercado Libre has introduced a “Seller Assistant” powered by AI. This tool streamlines the onboarding process, provides recommendations for improving listing quality, automatically generates short-form videos from product images, and handles customer service inquiries. The Seller Assistant is designed to empower merchants and help them succeed on the platform.
According to the company, these initiatives represent “early steps in a broader effort to embed AI across the marketplace to improve discovery, increase relevance and conversion and deepen engagement.” The long-term vision is to create a more personalized and efficient marketplace for both buyers and sellers.
Fintech Innovation with the Mercado Pago AI Assistant
Mercado Libre’s fintech arm, Mercado Pago, has also embraced AI with the launch of an AI assistant in October . This virtual assistant handled over 9 million customer inquiries during the fourth quarter, resolving 87% of them without requiring human intervention. This demonstrates the potential of AI to automate customer service and reduce operational costs.
The company plans to expand the capabilities of the Mercado Pago AI Assistant in the coming months, making it more proactive and capable of handling a wider range of tasks, including general inquiries, fund transfers, and bill payments. This expansion will further enhance the efficiency of Mercado Pago’s customer service operations and improve the overall user experience.
Financial Performance and Outlook
The strong fourth-quarter performance capped off a successful for Mercado Libre. The company reported full-year revenue growth of 39% and a 22% increase in income from operations. Net revenue and financial income for the fourth quarter reached $8.8 billion, a 45% year-over-year increase. Despite margin compression of 5-6 percentage points due to investments in shipping and credit card programs, management expressed confidence in the company’s long-term growth prospects.
Mercado Libre’s success in leveraging AI highlights the growing importance of this technology in the e-commerce and fintech sectors. By automating tasks, personalizing the user experience, and optimizing operations, AI is enabling companies like Mercado Libre to drive revenue growth, improve efficiency, and gain a competitive advantage in the rapidly evolving Latin American market. The company’s continued investment in AI suggests that this trend is likely to continue in the years to come.
Monthly active users for Mercado Pago reached nearly 78 million, growing 27% year-over-year, while the credit portfolio grew 90% year-over-year. The company also noted record Net Promoter Scores (NPS) in both commerce and fintech in Brazil, Mexico, and Argentina, indicating high levels of customer satisfaction and loyalty.