eCommerce is the way of the future and has many things to deliver. Online retail has come such a long way from shopping carts to drone adoption, voice recognition, and eventually artificial intelligence.
This means using emerging technologies and innovations like artificial intelligence for companies to make the most of this golden age of eCommerce.
Through anticipating purchasing habits based on the items that consumers purchase and when they purchase them, the use of artificial intelligence in online shopping impacts the eCommerce industry. For instance, if online customers regularly buy a specific coffee brand every week, then the online store might give such customers a customized deal for this product, or even use a machine-learning recommendation for a substitute product that goes well with the coffee.

4 major AI applications in eCommerce
Although the advantages of artificial intelligence in eCommerce are numerous, here are 4 major eCommerce AI applications that dominate the market nowadays:
Machine learning
Machine Learning is the prevailing trend in AI that enables eCommerce businesses to recognize patterns and trends.
That helps retailers to truly understand the consumer. What they like, what leads to bounce rates, and so on. This kind of research, extracted from massive data sets, significantly enhances customer service, and reduces cart abandonment rates.
Moreover, machine learning can improve search results, taking factors such as personal choice and order history into account.
Chatbots and other virtual assistants
eCommerce companies are starting to use chatbots or digital assistants to provide their potential customers with 24/7 assistance. Chatbots, designed using AI technology, are becoming more responsive and are allowing a superior customer experience.
Besides providing excellent customer service, chatbots enhance the impact of AI in eCommerce via capabilities like:
- Natural language processing (or NLP) that can perceive voice-based user experiences.
- Providing better insights into customer preferences.
- Self-learning skills which help them develop over time.
- Offering customized or targeted deals
- Smart product recommendations
Customized product recommendations
Customized product recommendations for the customers are amongst the main applications of artificial intelligence in eCommerce, rising the conversion rates by 915% and the estimated average values by 3%.
Due to its awareness of past orders, searched items and online browsing patterns, AI in eCommerce is affecting consumer decisions through the use of big data.
Product recommendations provide Ecommerce companies with many advantages, such as:
- A higher number of clients returning
- Enhanced sales and customer loyalty
- A customized online shopping experience for the shoppers
- Allow a customized email campaign for the company.
Augmented reality
AR takes the eCommerce shopping experience to the next level.
There are numerous benefits of using augmented reality, from visual merchandising to hyper-personalization. A beauty online shop, for instance, can help customers who are shopping for makeup by giving them a preview of the different looks just by pressing a button.
How to use AI to boost your eCommerce business?
New AI technologies and machine learning innovations offer relevant insights and predictions to address market challenges. When businesses grow, these algorithms and resources are required to provide insights and predictions to enhance their processes and productivity.
Here are a few ways you can use AI to boost your eCommerce business:
For improved customer recommendations
Using AI, you can automatically gather useful insights such as purchase history and other consumer data sets to optimize product recommendations for the shoppers. This will greatly boost revenue by upselling and cross-selling.
To make the shopping experience unique, by using virtual assistants
You can make the shopping experience unique, just like in shops, by adding a virtual shopping assistant. There are many famous examples, from Amazon’s Alexa to Mona, where virtual shopping assistants have served clients incredibly well.
To provide a private experience
There is a fine line between personalization and privacy violations. Despite current data regulations and user protection being the watchwords, online shops need to be very careful about security.
AI can offer powerful features that make the share of information easier for users. For example, it is capable of providing excellent experiences to users even though they are not linked to the eCommerce stores. This way, the customers freely share their personal data for the outstanding service, without hesitation.
To improve inventory management
Inventory management is extremely necessary, yet difficult for online stores.
With dozens of product categories and alternatives, it is very hard to monitor inventories and ensure product availability, especially during the holiday season. Inventory management AI-based systems use historical data to forecast patterns and create a link between current and future demands.
The business value of using AI for your eCommerce
- Can decrease cart abandonment
- Better search results
- Voice and image search that is mainstream nowadays
- Will target the most profitable customers
- Better optimization of stock levels
- Provides personalized data that lead the users to convert
To conclude
As illustrated in this article, artificial intelligence in eCommerce plays a leading role in driving innovative solutions and outstanding customer experiences.
It is clear that AI is here to stay! It will continue to improve eCommerce stores, user interaction, and conversion rates. AI technology will definitely have a huge and beneficial effect on the eCommerce industry in the years to come. It will change, and arguably improve the way customers find products online.
Are you ready to implement artificial intelligence in your online business and to stay ahead of the competition? Let’s get in touch!