How Artificial Intelligence Empowers E-commerce Industry

How Artificial Intelligence Empowers E-commerce Industry

The future of the E-commerce business is transforming at a rapid pace. Innovative technologies are driving this change. In this digital edge, more and more brands are rooting for state-of-the-art technologies to cater to the needs of customers engaged in digital commerce. Whether it is a one-on-one chatbot or an intelligent personal assistant, the reason behind this revolution is Artificial Intelligence (AI).

Artificial Intelligence is not a new technology, but it has had a major impact on our lives in the last few years. From self-driving cars to Amazon’s Echo, AI is undoubtedly one of the most important innovations of this decade. Nowadays you can speak with an AI and get answers to almost any question you have. But how did AI come into existence, and how can its application in E-commerce be utilized? AI services and technologies such as conversational shopping assistants (CSAs) have helped e-commerce companies boost their ROI and set new targets for the future.

Leveraging the Power of AI in Ecommerce

Artificial intelligence (AI) in E-commerce is one of the most exciting and disruptive technologies the industry has today. With AI, computers or software can take over repetitive tasks that humans do. It’s time for e-commerce businesses to use artificial intelligence. AI can help businesses identify gaps in their digital strategy and what they need to do to improve the customer experience. Tools like AI image generators can increase the speed of completing any task and contribute to overall performance. Some might say that hype around artificial intelligence in e-commerce has created a bandwagon effect in the digital space, but ignoring it completely will do no good because there might be some hesitation over economic sustainability related to AI applications in e-commerce right now. But once this becomes a common practice, it will no longer be an option but rather a necessity.

When it comes to E-commerce, AI plays a major role in improving customer experience and overall efficiency of e-commerce companies.

Here are some important applications of Artificial Intelligence in E-commerce:

Chatbots and virtual assistants

GenX customers remain hooked on their gadgets 24×7.  Gradually they became habituated to interacting with chatbots and digital assistants to enhance their online shopping experiences. Considering the unending uses of E-commerce, AI-based services are becoming more intuitive to provide desired customer service. AI strengthens the E-commerce industry’s customer outreach program from language processing to addressing consumer needs and providing personalized or targeted offers.

Predicting shopping patterns

Out of all the critical applications AI offers to E-commerce businesses, smart product offers have been transforming all shopping experiences. Conversion rates are touching new highs with specific product recommendations. This eventually enables the E-commerce industry to connect closely with more customers. Based on shopping patterns and search history, AI in E-commerce is influencing shoppers’ choices.

Providing Personalised Solution

In the E-commerce business, personalization is slated to be the most effective feature of AI. Deriving user insights from each visitor who engages in online commerce assists in creating personalized solutions. AI and machine learning in E-commerce cater future needs of consumers by combining and analyzing user behavior from different touch points including mobile apps, emails, and websites.

Remarketing to potential prospects

Based on the behavioral pattern of every customer, remarketing focuses on reaching out to existing customers with more attractive and customized offers. AI collects, combines, and analyses data to attract customers back to the E-commerce store. With one-on-one communication and push notifications, AI-enabled initiatives help in remarketing to your existing customer. In remarketing campaigns AIs act as a cost-effective and impactful strategy. Effective remarketing ensures your brand pops up in your customer’s head whenever he surfs the internet.

Inventory optimization

Maintaining stock that can fulfill demand but never lead to any kind of loss is an optimum level of Inventory management. Stock control and loss prevention require constant supervision.  AI improves inventory management by analyzing sales trends, anticipating demand forecasts, and scrutinizing supply-related issues.

In stock keeping and dispatches, AI-based automated robots are projected as the perfect testimony of AI empowering E-commerce.

AI is all about E-commerce needs. AI-powered solutions are not limited in nature. It can assist in many more ways like in email marketing, supply chain automation, data analytics, and in providing Omnichannel AI solutions.

With personalized shopping, product recommendation, and inventory optimization, AI in e-commerce has proved to play a critical role in ensuring continuous growth in this industry. By enhancing customer experience and assisting in ease of business, along with AI, machine learning in E-commerce is set to further improve KPIs which will ultimately make this industry go strong.

Fighting fake reviews: While fake reviews are a serious issue for e-commerce stores, it doesn’t have to be that way. The first step is to understand how they work and why they do so well. Knowing how a consumer perceives your product or service is important before you can address the issue. The second step is to identify the types of fake reviews that can harm your brand. There are two types of fake reviews: those that are made by bots and those that are made by humans. In both cases, AI technology can be used as a powerful tool for tackling these problems.

Upgrading your E-commerce platforms with AI

Here are some of the features that you need to integrate into your online marketplace

  • Integrate Product Recommendation Engine: Nowadays, AI enables retailers to personalize their product recommendations and improve customer engagement. Retailers can use Big Data (the collection and compilation of data from different channels, previous transactions, and other activities) to determine the trends in shopping habits. This analysis could be used for personalized product recommendations.
  • Take advantage of NLP to improve personalization: When we talk about personalization in the context of e-commerce and customer support, right now there is nothing better than intelligent customer engagement at every point of contact. One of the most important aspects of personalization is the ‘search result’. With advanced semantic-based site search, customers can easily navigate the store and find relevant products without wading through a lot of unnecessary results. AI is now able to understand natural language and interpret human semantics, generating relevant results.

Personalization also applies to offline channels such as brick-and-mortar stores and physical locations where retail assistants can help customers with their questions or provide personalized recommendations based on their own experience in the store or previous purchases.


Artificial Intelligence and Machine Learning are soon going to play a key role in online retail businesses. This technology is going to make things easier for the sellers and like a cherry on the cake; Artificial Intelligence is going to take care of the niche part of the business that needs keen attention such as handling calls, managing chat messages, creating accounting reports, and much more. The above are some of the quick improvements which you can bring to transform your business with the help of AI application technology for a better and improved customer experience. This will help you to streamline your operation structure and invest in a less capital-intensive business model. Certainly, the introduction of this technology can offer plenty of benefits for small businesses as well as large or medium-sized enterprises. Some insights about the Scope of AI in eCommerce and Use Cases of AI in eCommerce

If you’re planning to switch your offline business to online retail or eCommerce platform, G2 TechSoft is the right choice. Our smart team of developers understands all new-age Artificial Intelligence technologies and serves their clients with reliable and affordable eCommerce development services.