How Artificial Intelligence Drives E-commerce Today?

Artificial intelligence in e-commerce

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AI in eCommerce is expected to reach $36.8 Billion worldwide by 2025.” – Tractica

Artificial Intelligence – or AI, as it is commonly known – is a hot topic today. From retail and E-commerce to healthcare and education, businesses across the spectrum are leveraging the wide-ranging benefits of AI.

In this blog, we will look at how AI is impacting the E-commerce world with its smart and intuitive solutions.  Let’s get started. 

Top-5 Roles of AI in E-commerce 

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1. Chatbot

AI chatbots are all the rage now. And for good reason. In the E-commerce sector, AI-powered chatbots like the Acquire chatbot can offer a host of business and customer-centric advantages such as:

Round-the-clock availability: It offers proactive 24×7 support to customers:


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  • All-important data access and analysis: It allows businesses to gather critical information about customers in real-time such as past shopping behavior, user preferences, etc.
  • Capture quality leads: AI chatbots can work non-stop – be it night or day. This means that businesses never lose out on prospective customers.
  • Drives user engagement and empowers customers to self-serve: Chatbots act as every customer’s virtual handy guide – addressing routine questions and guiding users by providing a rich knowledge base of resources.

Key takeaway: If you wish to supercharge your customer service experience while boosting your E-commerce business, chatbots are the way forward.

2. Voice Assistants

50% of all searches across the internet will be voice-based by 2020.”

“Siri, is toilet paper available on Amazon?”

“Alexa, what’s the price of the smartphone?”

Plus, according to Google CEO, Sundar Pichai –One-fifth of the queries on Google are voice searches.”

All in all, this is how shoppers are shopping today. The age of Google searching is long gone. With the advent of voice assistants, the process of online shopping has been stripped down to its lowest common denominator – (literally) one command away. 

That said, businesses need to ensure that they engage in voice optimization. Here are a few tried-and-tested strategies that you can try:

  • Speeding up their website speed.
  • Driving content that’s question- and answer-based.
  • Claiming your Google My Business listing.
  • Driving a mobile-friendly strategy.
  • Creating a blog post and answering your customer’s queries first-hand.

Key takeaway: Voice assistants have evolved to emerge as personal shopping assistants for customers today.

3. Customer-Centric Visual Search

49% of users say they develop a better relationship with brands through visual search.” – Pinterest

Everyone wants contextual and relevant search results today. Shoppers, in particular, don’t have the time or patience to browse through products that feel alien or irrelevant. This is where AI comes in handy.

Let’s take the example of Pinterest’s “Shoppable Pins,” which comes with a visual search feature called – Lens – that makes it easier for shoppers to buy products they’ve taken photos of:

E-commerce product in smartphone

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How does this help? Once the user has uploaded the image, Pinterest brings up shoppable pins in visual search results so that users can buy products of their choice/liking:

Product optimization in smartphone

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Key takeaway: If elevating your customer’s shopping experience ranks high on your marketing list, you need to invest in the visual search capabilities, which can eventually become instrumental in developing the customer’s style and taste.

4. Biometrics for Validating Shoppers

Did you know that E-commerce businesses are using futuristic biometric authorization technologies such as fingerprints, facial scans, vein recognition, and gait analysis to validate shoppers? 

This move comes at a time when shoppers want a seamless, friction-free experience and are engaging in impulse buying, now more than ever:

“Impulse purchases represent 40% of all the money spent on e-commerce.”

That’s not all. A few shops are making use of facial recognition to learn more about their customer’s behavior. This data is captured to help analyze how the customer is spending time near a particular product shelf.

This allows the business to get a pulse of what’s driving the customer’s decisions and helps the business to determine what is in greater demand from the buyer’s perspective.

By enabling a smooth shopping experience, E-commerce businesses can drive further sales. In fact, as per research by Statista, One in three online shoppers in the US have abandoned a transaction rather than re-enter payment details.” We’ve all been there and done that, right?

Key takeaway: In order to stay afloat in an increasingly competitive environment, E-commerce businesses need to think of ways to make the customer’s life easier – from single-step checkouts to biometric authorization, businesses are leaving no stone unturned to ramp up innovation-led convenience. 

5. E-commerce Hyper-Personalization – The New Reality

“91% of consumers are more likely to buy from companies who remember them and provide relevant offers.” – Accenture Report

Customers today have come to expect personalized product recommendations from E-commerce businesses. So much so, that 83% of customers are even willing to share information to get personalized offers.

Here too, AI can lend a helping hand. By analyzing customer behavior and their ever-evolving needs, brands are using AI to deliver hyper-personalized customer experiences.

Let’s take a look at a few real-life examples to understand this better:

Topshop provides on-site assistance to shoppers in the form of ‘Recommendations,’ ‘Style Guides,’ etc.:

Topshop-Wardrobe - AI in E-commerce example

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In addition to this, the company follows up in its personalization endeavor by rolling out customized emails – complete with details about new products and a tailor-made section called ‘Top picks for you’:

Topshop-Top-New-Picks-For-You - AI in E-commerce example

Another excellent example to consider is ASOS which suggests products to users based on their preferred styles and brands and on their browsing and shopping history:


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Key takeaway: Offering a personalized E-commerce experience (by way of popups, texts, emails, etc.) ensures that your customers stay loyal to the brand and, in turn, drives conversion rates organically. Plus, it makes the customers feel special and, more importantly, ‘understood’ by the brand. 

Final Thoughts

AI and E-commerce have emerged as a sort of a (proverbial) match made in heaven.

By leveraging smart technologies, E-commerce brands are transforming the way customers are interacting with the brand and revolutionizing the way businesses are innovating their sales as well as marketing strategies to better cater to customers.

To put it simply, AI is the future of E-commerce, and the future is here.

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