How is Artificial Intelligence improving the e-commerce?

AI is transforming the business models of many brands and enterprises. New technological advancements are being innovated in the industries.
The integration of Artificial Intelligence in e-commerce is increasing the marketing standards for many companies. It has helped in creating a more personalized experience by performing the analysis of data sets, and by identifying different patterns of consumer behavior.

Here are some of the ways that depict how Artificial Intelligence has dominated the world of e-commerce -
1. Visual Search Engine
The e-commerce sector has started the use of artificial intelligence by using visual search engines. This helps the user by allowing them to search for whatever they desire with a single click.
The visual representation of the products has proved to be more appealing to the customers. The customers can now view the size, dimensions, design, and color of the product before ordering it.
This helps in improving the consumer experience of the brand.

2. Provides Personalized Recommendations
Artificial Intelligence uses pop-ups, texts, and emails to provide product recommendations to the buyers.
It tracks the searches made by the users to understand consumer behavior.
The search engines and other social media platforms also display images and ads of the product related to the interest of the user which is also tracked by Artificial Intelligence in e-commerce.
This helps in improving the reviews and ratings of the e-commerce platform that thereby helps in increasing the return of investments (ROI) of various brands.
The e-commerce retailers use recommendations to provide the best solution to the customers.
For instance, Amazon uses the data from past purchases of the customers to recommend new products. On the other hand, Netflix uses consumers to view history to recommend different movies and series.

3. Voice and Virtual Assistance
Artificial Intelligence is focusing to provide more interactive solutions to the customers. It provides real-time voice assistance to the users. This has largely contributed to improving the user experience.
This makes it easy for users to interact with service providers. You must be familiar with some of the popular virtual assistants like Alexa, Google Assistant, and Siri. E-commerce companies are focusing on adding virtual assistants on their respective platforms.
The virtual assistant can easily process the native languages and can easily interpret and understand the messages of the customers.
Virtual assistants have completely transformed the purchasing process of consumers.
For instance, in 2017, Starbucks launched ‘My Starbucks Barista’. This allowed consumers to use voice to place orders.
The algorithm used by AI extracts data like purchase history and preferences made by the customers. This personalized data is used by Starbucks to send offers and recommendations to the customers.

4. Use of AI in Lead Generation and Sales
One of the most significant uses of AI is in generating sales for e-commerce platforms. It extracts the data of the consumers and tracks the purchasing patterns of the buyers.
Imagine how time-consuming it would be if humans had to collect data and track consumer behavior. AI has lowered the burden and has made these tasks quite easy.
This has largely assisted various brands in generating leads and increasing sales.

5. AI Offers Services at Lower Costs
The services provided by AI are quite affordable. It makes the daily processes automatic and improves the shopping experience.
One of the most cost-effective services provided by Artificial Intelligence is Chatbots.
Chatbots are software that acts as a medium of interaction between the consumer and the service provider. It helps in resolving the queries and questions of the customers in real-time.
The response time has largely decreased with the use of chatbots. It also reduces the cost of hiring customer service officials as it can perform all the tough tasks in real-time. A customer-centric approach is developed by using Chatbots.

6. AI Helps in E-commerce Marketing
Marketing in any business is an expert’s work. AI solutions provide a cost-effective way to assist in the marketing of various brands.
These businesses can offer their marketing plans and campaigns to AI platforms like Acquisio. Marketing operations are handled quite efficiently with the use of these platforms.
It provides marketing solutions on various social platforms like Facebook, Google Adwords, Bing, and more.
The AI solutions help in minimizing the Cost Per Click and utilize the marketing budget in the most feasible manner.
The EndNote

The above-mentioned points reveal how Artificial Intelligence will contribute to e-commerce. AI has transformed the business models of many small and large businesses.

AI has made its place in our day to day lives. It is expected that Artificial Intelligence will be the major theme for new innovations by major tech companies like Microsoft and Google. These companies are making huge investments in AI ventures.
Recently, Google has purchased an Artificial Intelligence company named DeepMind worth £400 million. This startup has a specialization in machine learning.
Various other technology firms like Yahoo and Facebook are also planning to invest in Artificial Intelligence.
According to a report by Business Insider, by 2020, 85% of the consumer interaction will be done without the involvement of humans.
Thus, to cope up with the current competition and to stay ahead in the business world, make sure to inculcate Artificial Intelligence in your business model.


Accounting for an impressive 35% of its overall revenues, product upselling and cross-selling on the Amazon E-commerce platform is among this retailer’s major success stories. Which technology is driving this mode of conversion? Amazon’s product recommendation technology that is primarily enabled by artificial intelligence or AI.

Apart from product recommendations, artificial intelligence in Ecommerce industry is being utilized by online retailers for providing chatbot services, analysing customer comments, and for providing personalized services to online shoppers. In fact, a 2019 Ubisend study found that 1 in every 5 consumers are willing to purchase goods or services from a chatbot, while 40% of the online shoppers are looking for great offers and shopping deals from chatbots.
While the global E-commerce sales are projected to touch $4.8 billion by the year 2021, Gartner predicts that around 80% of all customer interactions will be managed by AI technologies (without any human agent) by the year 2020.
So, how is AI in Ecommerce changing the shopping experience in 2019? Through this article, let’s see some of the important applications of artificial intelligence in Ecommerce along with some of the real-life industry examples.
How is Artificial Intelligence transforming shopping experience?

The use of artificial intelligence in online shopping is transforming the E-commerce industry by predicting shopping patterns based on the products that shoppers buy and when they buy them. For example, if online shoppers frequently buy a particular brand of rice every week, then the online retailer could send a personalized offer to these shoppers for this product, or even use a machine learning-enabled recommendation for a supplementary product that goes well with rice dishes.

Ecommerce AI tools or AI-enabled digital assistants such as the Google Duplex tool is developing capabilities like creating grocery lists (from the shopper’s natural voice) and even placing online shopping orders for them.

Major AI Applications in Ecommerce
While there are multiple benefits of artificial intelligence in Ecommerce, here are 4 major AI applications for Ecommerce that is dominating the industry today.
Chatbots and other virtual assistants
E-commerce retailers are increasingly turning towards chatbots or digital assistants to provide 24×7 support to their online shoppers. Built using AI technologies, chatbots are getting more intuitive and are enabling a better customer experience.

Apart from providing good customer support, chatbots are enhancing the impact of AI in Ecommerce through capabilities such:
Natural language processing (or NLP) that can interpret voice-based interactions with consumers.
Addressing consumer needs through deeper insights.
Self-learning capabilities that help them improve over time.
Provide personalized or targeted offers to customers.
Intelligent Product Recommendations
Among the major applications of artificial intelligence in Ecommerce, personalized product recommendations for online shoppers are increasing conversion rates by 915% and average order values by 3%. With the use of big data, AI in Ecommerce is impacting customer choices thanks to its knowledge of previous purchases, searched products, and online browsing habits.

Product recommendations provide multiple benefits for Ecommerce retailers including:
Higher number of returning customers
Improved customer retention and sales
A personalized shopping experience to online shoppers
Enable a personalized business email campaign.
AI Personalization in Ecommerce
Rated among the most effective modes, personalization is at the core of AI in Ecommerce marketing. Based on specific data gathered from each online user, AI and machine learning in Ecommerce is deriving important user insights from the generated customer data.

For instance, the AI-enabled tool, Boomtrain is able to analyse customer data from multiple touch points (including mobile apps, email campaigns, and websites) to see how they are performing online interactions. These insights enable Ecommerce retailers to make suitable product recommendations and provide a consistent user experience across all devices.

ince 2016, ecommerce companies at large have begun to focus on AI as an augmented capability for recurring, manual tasks such as dynamic pricing, virtual agents, personalized experiences, and more efficient delivery.

For larger companies, like Amazon, AI is an incredibly differentiating force.
For smaller, up-and-coming brands, AI is a change management challenge.
But the gap between the AI haves and the AI have nots is widening.
The prospect of another seismic technology shift may be daunting, especially on the heels of the digital transformation.
Don’t be a victim of analysis or change paralysis.
Use the foundation laid from prior transformation initiatives and data collection as the wind beneath your sails.
Here is a quick checklist on how to tackle the AI in ecommerce for your brand.

Start small. Don’t worry about auditing the organization and hiring your first C-level AI leader out of the gate.
Find a good partner who can take you from data collection through to a well-defined strategy, and then into action.
Learn from that partner to build your own competency over time.
You’ve already accomplished the hard part. You have data and a corporate strategy.

All you need is a relevant, narrow use cases to apply to your first AI project.

AI implementation can be hard to get off the bench, but doing so is critical to survival in the future ecommerce economy where winners and losers will be defined by what they do with data, and how they scale their human capital.

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