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The Role of Artificial Intelligence in Ecommerce

The Role of Artificial Intelligence in Ecommerce

by Damiya A

A year ago

Artificial Intelligence is no longer a new concept. It has a bearing on any conceivable thing. From e-learning to smart homes and e-commerce, every domain has remained untouched by artificial intelligence’s impact.

Moreover, artificial intelligence has also been embedded in virtually every aspect of our lives. Ecommerce businesses are using artificial intelligence in some practical and powerful ways to improve the online shopping experience of their punters.


Changes Artificial Intelligence is bringing to ecommerce

Artificial Intelligence isn't a novel technology anymore. Businesses are implementing it for its cool factor. Artificial Intelligence has the strength to impact various business functions across the business. Understanding the components of artificial intelligence can help you understand its impact on your ecommerce business.

AI's definition is broad and encompasses multiple elements, such as natural language processing, data mining, and machine learning. All of these are impacting ecommerce businesses in one way or the other. For instance, data mining help businesses to gather and analyze historical data to make predictions. Natural Language Processing is focused on human-computer interaction to interpret the natural language of humans.

Moreover, Machine Learning is concerned with using algorithms collection to solve problems.

Over time, Artificial Intelligence has matured enough and is considered a powerful tool to optimize operations and boost sales. Various small ecommerce businesses utilize tools with artificial intelligence capabilities to benefit their businesses.

For example, Amazon recognized artificial intelligence’s benefits a long ago. The company has been using machine learning to ensure improved customer experience, well-optimized logistics, and better product selection.

Benefits of using artificial intelligence in the ecommerce industry

According to a recent publication, the imperatives of rethinking retail can somehow be supported by AI-based technology.

Do you want to know how AI can benefit the ecommerce industry? Let's look at the details below to see how artificial intelligence benefits the ecommerce industry to know more.

So, here we go:

  • AI can help ecommerce businesses to create more targeted advertising and marketing campaigns by implementing personalization across channels.
  • Delivering targeted advertising and marketing campaigns with artificial intelligence can help ecommerce businesses to increase their customer retention rate. This omnichannel personalization through AI can uplift up to 15% potential in revenue.
  • AI can help ecommerce businesses accelerate their performance and productivity by automizing tasks.
  • Artificial intelligence has also helped ecommerce businesses develop efficient sales processes. Ecommerce businesses are using AI to gather customer data, give better suggestions, and automate follow-ups of abandoned cart inquiries.

Powerful ways the ecommerce industry can use artificial intelligence

Many ecommerce businesses have been using artificial intelligence in multiple forms. These range from generating new leads to better understanding their products and improving customer experience.

Do you want to know how artificial intelligence is being used in ecommerce? Read out the comprehensive list we have enlisted below to understand things better in this regard.

So, here we go:

Product pricing optimization

Artificial Intelligence based tools are also helping ecommerce businesses to optimize their pricing strategies. AI-enabled dynamic pricing solutions are efficient in changing the prices of your products based on their demand and supply. With access to adequate data, the AI-enabled tools can easily predict when an ecommerce business should offer a discount. These tools can even help you know what to discount by dynamically calculating the minimum necessary discount offer for sale.

Personalized product recommendations

Personalization has arguably remodeled the ecommerce industry. It can influence the shopping experience per individual customers' needs, preferences, pain points, and tastes. For instance, online businesses can showcase recently viewed products to customers through email marketing campaigns. Or the business can also create a product list for a potential customer who already has shown some interest in their products.

This strategy can also translate into a personalized shopping experience for every potential buyer. Businesses can encourage their potential customers to take action by actively and dynamically showing content.

Artificial intelligence technology considers different aspects such as browsing behavior, click-through, buying history, and more to provide personalized product recommendations.

Virtual assistants and voice search

AI chatbots are the most commonly used virtual assistants in the ecommerce industry. These chatbots utilize machine learning and language processing technologies to understand questions asked by prospects. The chatbots then provide much-needed support to your prospects accordingly. The concept of AI chatbots isn't new to anyone anymore. We all are familiar with Google Assistant, Alexa, Siri, etc.

However, ecommerce businesses prefer to use AI chatbots to ensure their 24/7 availability. Moreover, these can also help in improving the scalability of the business.

Above all, voice ecommerce is also experiencing remarkable growth. It helps potential buyers to find and buy their preferred items through speech. As technology has increased the convenience and speed of online buying processes, its popularity is increasing continuously.

Consequently, more and more ecommerce businesses are using AI to optimize voice search features.


Multiple ecommerce stores are now operating on multiple channels with round-the-clock availability. This practice has become successful by integrating automation into your business. For instance, some online retailers have automated their online support to save time and operating capital.

While other businesses have automated some aspects of their sales and marketing processes. Anyway artificial intelligence is providing great help to businesses that need to optimize their operations. Using artificial intelligence technology, businesses in the ecommerce industry can easily manage and execute their repetitive tasks and simplify their workflow in the best possible way.

Retargeting potential buyers

According to a report, sales teams must follow up on about 33% of marketing leads. This practice falls the pre-qualified potential customers interested in your service or product through the inevitable cracks. Artificial intelligence tools can help ecommerce businesses respond to their customers directly. This practice has consequently changed the face of sales dramatically.

It seems like ecommerce businesses are now reading their customers’ minds. Fortunately, this is all because of artificial intelligence.

Overall, there are multiple ways artificial intelligence can play its role in ecommerce. This technology is reshaping the ecommerce industry dramatically by impacting every aspect of this industry in some way.



    Rose robertk on

  • It was such a great article which was on artificial intelligence in ecommerce. Artificial Intelligence (AI) plays a significant role in eCommerce by enhancing various aspects of the online shopping experience, improving operational efficiency, and enabling personalized interactions. Here are some key roles of AI in eCommerce:
    1.Product Recommendations
    2.Customer Service
    3.Search Optimization’
    4.Inventory Management
    5.Fraud Detection
    6.Pricing Optimization
    7.Customer Segmentation and Personalization
    These are some points which I want to include in your article. Readers, if you want to develop your ecommerce website, you can get free consultation from IT companies like Alakmalak technologies. They have 17+ years of experience in this field.

    Julia Davis on

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