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Algolia, the AI Search and Retrieval platform trusted by more than 18,000 businesses worldwide, has released the results of a Total Economic Impact™ (TEI) study conducted by Forrester Consulting. The independent study quantifies the potential return on investment (ROI) enterprises can achieve by deploying Algolia’s platform, revealing a 213% ROI over three years and a payback period of less than six months.
The Forrester TEI study aggregates experiences from four decision-makers at organizations using Algolia. It constructs a composite ecommerce business with $600 million in annual revenue and over 600 million searches per year. Prior to Algolia, these organizations relied on in-house or bundled search solutions that struggled with relevance, scalability, complex catalogs, and heavy manual maintenance.
Algolia’s API-first platform addresses these challenges with advanced capabilities such as typo tolerance, dynamic ranking, and rich indexing. These features enable faster, more accurate multi-modal product discovery, personalized AI merchandising, and engaging customer experiences across digital channels.
John Stewart, VP Corporate Communications and Brand at Algolia, said: “Retailers are under immense pressure to drive agility and resilience at a time when prices are hitting record-highs and brand loyalty is down. Ecommerce leaders may think they need to start from scratch on their merchandising strategies to accomplish meaningful revenue gains, but this Forrester study disproves this theory. By adopting Algolia’s cost-effective AI search and discovery, ecommerce businesses were able to double ROI and achieve payback in a few short months. This goes to show that the right AI retrieval and search engine can future-proof and grow retail businesses at a time when volatility is the norm.”
The study highlights measurable financial and productivity benefits across multiple functions:
Stewart added: “Forrester paints a clear picture of the quantitative benefits of the Algolia platform, but they also discovered a lot of qualitative benefits during the course of their interviews. The study highlights how Algolia supercharges agility by enabling teams to make real-time changes, launch new features faster, and scale search experiences across regions and languages with minimal development effort. Ease of use and scalability are at the heart of everything we do, and it’s why we’re trusted by over 18,000 businesses worldwide. We’re glad this came through in the Forrester interviews.”
The TEI study follows recent Algolia announcements, including a partnership with Microsoft to extend merchandising control into large language models and the general availability of Agent Studio. Agent Studio enables teams to build, deploy, and govern production-ready AI agents that leverage Algolia’s unified keyword and vector search for reliable, observable, and orchestrated experiences.
Together, these advancements build on the revenue and efficiency gains documented in the Forrester study, unlocking greater potential for conversion, agility, and ROI in agentic and LLM-driven environments.
To download the full Total Economic Impact™ study, click here. To find out how Algolia’s AI Search and Retrieval platform can help your business drive revenue, time savings, and search conversions, sign up for a demo.
About Algolia
Algolia is the leading AI Search and Retrieval platform, powering 1.75 trillion searches a year for more than 18,000 businesses. With a unified keyword and vector search and retrieval engine, Algolia delivers the world’s fastest and most scalable search and discovery technology. Companies rely on Algolia to build agentic, generative, and search experiences through tools like Agent Studio. With over a decade of innovation, Algolia is redefining retrieval-powered applications and the future of AI discovery.
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