Artificial intelligence is playing an important role in the growth of E-commerce. The artificial intelligence has revolutionized e-commerce and shaping the world of online shopping experience by creating new technologies. AI has helped in fulfilling the customer’s expectations through intelligent techniques. With the use of AI techniques e-commerce market share is increasing in total business conducted in the world. Newer technologies are being developed by taking the help of artificial intelligence techniques. Each time you encounter a personalized experience with an app or search engine that remembers your past searches and purchases record, AI is playing its role in that. AI along with machine learning is playing a greater role in enhancing user’s experience in the e-commerce business and increase the ROI. Even if you are running a small business, you cannot ignore the influence of AI for too long. It has been observed that the average gross profit margin of companies that uses AI techniques, was 50%more that those who were not doing so.

Today we see that AI is being used in e-commerce in a big way! And Gartner predicts that by 2020 over 80% of all customer interactions will be handled by Artificial Intelligence. Many companies like Alibaba, e-bay, and Amazon are using AI today for reviews, chatbots, product recommendations, managing big data, etc. We expect to see greater adoption of visual listening tools with integrated AI capabilities to analyze all visual contents inefficient way for e-commerce business. You can contact Best E-commerce website development company USA call +1 (408)-372-0967 and know how to develop your initial e-commerce website or go further improvement in your site for the growth of the business. We will help you to make smart decisions and help you to grow your e-commerce business.

Here are some of the most popular application of AI in e-Commerce

  1. AI assistants and Chatbots: They help brands with responding to customer inquiries: including written and voice ones. They are also used in products recommendations through NPL ( Alibaba and Amazon are good examples of it)
  2. Smart Logistics: AI automates warehouse operations and delivery processes ( J.D. com is the best example of it).
  3. Recommendation engines: AI is used to analyze customer behavior on websites. With the use of algorithms, it is predicted that what product may be liked by customers and provides recommendations (example Amazon).


Benefits of using AI in e-commerce business

  1. AI provides customer-centric visual search: Generally, consumers are often disappointed with e-commerce experience because the product results shown to them are often irrelevant. To overcome this problem, AI uses natural language processing to narrow, contextualize and improve search results for online shoppers. It also allows having visual search capabilities, finding the matching products. AI is helping and enabling shoppers to discover complementary products and enhance
  2. AI helps in retargeting potential customers and improve the sales process: Generally, more than 1/3 of marketing leads are followed up by the sales team. This means that many potential buyers interested in your product are just left behind and many sales teams are loaded with unmanageable customer data that is irrelevant. Here AI comes to the rescue and enhances the sales cycle, by tailoring problems and providing solutions and creating a strong sales message that reaches your consumers at the right time and right platform. Nowadays many AI systems are available that enable NLP and voice inputs like Siri, Alexa, etc. These systems allow CRM systems to answer customer queries, solve problems they face and also help them to identify new opportunities available to them.
  3. Provides a new level of personalization: There is a lot number of AI solutions that help to provide a new level of personalization. Boomtrain is one of the examples where the company analyzes different touchpoints to help the business analyze how the various customers are interacting online: via mobile app, web, e-mail, etc. The AI engine by monitoring various devices and available channels presents a universal view about the customers. So with AI one channel can be used to get views from all channels. This helps e-commerce retailers to deliver a seamless user experience to customers across all the platforms and allow them to send informative messages to customers at the right time.
  4. AI provides new tools like Chatbots and virtual assistants: Nowadays the main focus of e-commerce business is on user experience. The use of AI through tools like “chatbots” can be used to drive the conversation in conversational commerce. Chatbots allow us to automate the order processes. They help e-commerce retailers to provide 24/7 customer service, also collect valuable data, and track the behavior of customers in an effective and low-cost way. With the chatbots, e-commerce sites can increase their conversation rates by tailoring the online experience for the consumers. In one research reveals that chatbots will save more than $8 billion annually by 2022. The Alexa a virtual assistant from Amazon that has been integrated into Amazon’s owns products helped not to Amazon but other products from other manufacturers. Virtual Assistants are now impacting the purchase decisions of customers and providing creative opportunities for e-commerce retailers to take advantage of these opportunities.
  5. Provide a platform to improve recommendations for customers: With the help of AI, brands can now predict customer behavior and demand efficiently and provides helpful recommendations. The best example is Starbucks, which gathers and analyzes all the data with the help of AI to deliver more personalized suggestions. The AI algorithms used by Starbucks take into account, customer’s information, customer preferences, purchase history, third-party information, and contextual information and help them to increase their business.
  6. AI provides Intelligent agents: AI has helped to provide new intelligent agent negotiation systems and popular tools for e-commerce business. Intelligent agents provide tools that can match buyers, and sellers, facilitating transactions, and provide institutional infrastructure and that too in an automatic process.
  7. AI Filters fake reviews: In online business purchase decisions are based on the reviews. According to Dimensional Research’s 90% of respondents base their purchase decisions on positive reviews. The negative reviews pose a great danger to e-commerce businesses. However, we see that a lot of fake reviews are posted on sites by competitors, bots, etc. To overcome these problems AI provides solutions to manage this problem. Now a day many e-commerce businesses use artificial intelligence to fight astroturfing by getting more emphasis on verified and helpful reviews.
  8. AI helps in Automation of e-commerce business: Now we find robots managing many business processes. Through automation, the process of production is managed in factories. In the same way through the automation process by using technology and algorithms e-commerce business is also growing its customer base. AI is providing e-commerce retailers to publish their products on multiple channels thereby growing their business.

Now almost all the e-commerce business managements are investing heavily in using AI in their operations. AI-related investments in e-commerce business grew by about 300 per in 2017, and with a projected business of $1.2 trillion per year by 2020 it is assumed that AI’s role in e-commerce business will grow tremendously in the coming year. AI is on the rise in the e-commerce industry but still, it is far from being perfect. E-commerce companies will continue to improve their AI tools to better match market demand. AI is changing the way we buy and sell online. Now a large number of E-commerce companies are partnering with AI development companies to create more sophisticated solutions for their e-commerce business.


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