The article outlines how AI is reshaping online marketplaces, particularly by reviving categories that previously struggled. Marketplaces like Airbnb and Instacart thrived in the past, but many have faded as markets became saturated with niche options. The authors suggest that AI-native companies are emerging, focusing on using large language models (LLMs) to streamline operations and improve customer engagement. Rather than creating entirely new marketplace categories, AI is helping old ones—such as skilled labor and home services—transform into viable businesses again. AI is addressing key challenges that led to marketplace failures in the past. For instance, high customer acquisition costs (CAC) and low lifetime value (LTV) have been persistent issues. Companies are now leveraging AI to automate processes like candidate screening and match-making, which significantly reduces the time and cost involved. Marketplaces like Jack and Jill use AI voice agents to conduct interviews and increase the likelihood of successful job placements, slashing costs from hundreds to just a few dollars per match. Similarly, Spotlight Realty employs AI for communications and document management, allowing them to lower commission rates to 1.5%, compared to the industry average of 6%. Beyond enhancing operational efficiency, AI helps improve user loyalty and transaction frequency. Marketplaces can engage customers with personalized follow-ups based on their past interactions. For example, Honey Homes offers a subscription model for home repairs, ensuring ongoing customer relationships. On the supplier side, platforms like Remi and Lawhive use AI to provide transparent pricing and efficient service delivery, making their offerings more attractive and competitive. By changing the value proposition, these AI-driven marketplaces aim to foster loyalty and increase transaction volumes, creating a healthier ecosystem for all participants.