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13 Powerful Ways To Use AI In E-Commerce Platforms

by Anne Carton Tweet - in Website Design

AI in e-Commerce

Last updated on May 24th, 2023

Artificial Intelligence, or AI, has revolutionized how people interact with technology. With its immense potential, this cutting-edge technology has impacted almost every field, and e-commerce isn’t an exception. In today’s fast-paced business ecosystem, artificial intelligence helps e-commerce businesses automate their operations, making transactions more transparent, quicker, efficient, and seamless. From chatbots to personalized recommendations, AI-driven ecommerce websites have significantly transformed how we shop online.

With artificial Intelligence (AI) transforming the world, it has become an integral part of our daily lives. AI, particularly in the e-commerce sector, has achieved a noticeable development, revolutionizing how businesses operate, and customers shop online. Simply put, AI plays a crucial role in shaping the overall future of the e-commerce landscape.

When businesses are sprouting left and right, and there’s intense competition among players in the e-commerce industry, it goes without saying that you will be out of the race if you don’t keep up with all of these trends.

The Role of AI in eCommerce

AI is a powerful technology in the e-commerce industry, allowing businesses to enhance customer experience, optimize supply chain management, and scale sales. But what exactly is artificial intelligence, and why should you even bother with it in the first place?

The explanation is pretty simple. Because of the recent technological advancements, AI is now being used across different industries, from healthcare to manufacturing and retail.

Two of the most popular companies in the e-commerce world have embraced AI. They’re using it for customers to make better purchasing decisions. Moreover, AI can be utilized to enhance the overall customer experience. They can empower chatbots and VAs in different areas of the buying process, wherein human assistance is most needed.

With that said, AI can also enhance your customer’s overall shopping experience, which is the primary goal of an e-commerce provider.

The enhanced use of AI in the e-commerce world can significantly decrease the labor needed, lowering the cost of suppliers and benefiting customers in the long run.

Powerful Ways To Use AI In eCommerce

E-commerce sites must go through many steps to sell products satisfactorily to customers. This is undoubtedly a time-consuming task if done manually. That is why e-commerce sites aggressively integrate AI in their day-to-day customer dealing and automate various steps.

Here Are Some Key Ways To use AI In e-Commerce

01. Process Automation

During process automation, the AI system will analyze the historical data of the agent for task processing. This is to model a routine decision-making process. It usually applies to analyzed models to help you automate decisions and self-service.

Process Automation

An example would be an HR application that offers an automated response to user questions about specific benefits and travel policies or an AI system that automatically sorts any incoming requests or incidents in the right job queue or group.

AI is critical in automating repetitive tasks that will help you store functions. Using AI, you can even automate things like loyalty discounts, product recommendations, low-level support, and so much more.

02. Targeted Marketing and Advertising

A recent study by McKinsey found that personalization is a top priority for retailers, but only 15% of them have entirely implemented personalization on various marketing channels. You must develop one-on-one conversations and personalized customer messages to rise above competitors.

Targeted Marketing and Advertising

In the same way, AI and machine learning (ML) advances also created deep personalization techniques that help customize user content. For example, when you analyze data from extensive purchase histories and customer interactions, you can find out what your customers want and then deliver a message that resonates with them.

03. Introduction of Virtual Personal Shoppers

AI allows e-commerce brands to create AI-enabled smart shoppers. It will be like any customer conversing with a shop employee, inquiring about a particular item in a physical store.

Introduction of Virtual Personal Shoppers

By incorporating these savvy virtual shoppers, you can offer your shoppers a more engaging and interactive shopping experience.

For example, rather than putting specific words or creating selections by ticking boxes, it’s easy for your customers to talk to these virtual personal shoppers, catering to them and solving their queries.

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04. Analyze Customer Sentiment and Feedback

AI is an essential tool that businesses of all sizes can use. With its top-notch capabilities, AI can help boost your e-commerce conversions. In addition, using AI to analyze customer segments and feedback offers valuable insights into the needs and desires of your customers.

Customer Sentiment and Feedback

You can develop better content, products, and services that meet your customers’ expectations if you understand the data gathered from these sources. AI allows you to identify issues and trends, addressing them promptly and efficiently.

You can also use it to analyze your customers’ sentiments and feedback to provide companies insight into how customers feel about their products and services. This allows the sites to improve their services so that customers can make better purchasing decisions.

05. Advanced Semantic-Based Search

When discussing personalization in e-commerce and customer support, intelligent customer engagement at every point of contact is crucial.

Advanced Semantic

A search result is one of the most crucial aspects of personalization. Via an advanced semantic-based site search, customers can easily navigate a store, finding relevant products without wading through unnecessary details.

AI can now easily understand natural language, interpret human semantics, and create relevant results.

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06. AI Performance is Device Independent

AI in e-commerce brings in a new way of personalization that carries through no matter the device. For instance, a user searches a product in the website’s portal using their computer or mobile device. Sometimes, they couldn’t find the product’s availability because it was either out of stock or had yet to be launched.

AI Performance

AI will keep a track record, such as the user’s browsing history. Thus, whenever a product is launched or becomes available on the site, AI will show a push notification on all the devices the user has logged on.

This multi-channel strategy improves the customer experience since they can buy directly via the portable device.

07. Handling Fake Reviews Online

Your customer’s buying decision is primarily influenced by the reviews they read online on e-commerce platforms. You might have several cases wherein you have a negative product review. However, what if those same reviews hinder your customers from purchasing your product?

Handling Fake Reviews

This is also called astroturfing, and many e-commerce players are using AI to deal with these fake reviews. That way, your customers can make a more unbiased decision.

08. Easy Checkout

According to a study by Baymard Institute’s research, about 17% of online shoppers in the US abandoned their carts in 2022 because the checkout took too long and needed to be simplified.

Easy Checkout

A fast and easy checkout would enhance your product sales on your e-commerce site and ensure your customers have a smooth shopping experience. Amazon has already used this in its Go app, creating a ‘Just Walk Out’ experience.

09. Recommerce

True to its time, recommerce is the resale of products previously owned by others. Free ecommerce platforms can use AI to design, create, and implement systems that will explore this opportunity.


With more and more people leaning towards sustainability, and environmental awareness, this can be something you must watch out for.

10. Assistive AI

Many AI systems help employees with their day-to-day work, allowing them to complete mundane, repetitive tasks quicker and with less effort.

Assistive AI

It allows them to do challenging tasks that better use their creativity and industry expertise. For instance, during data center operations, AI systems analyze alerts and error messages on servers, application logs, services, etc.

11. AR and VR

Augmented and virtual reality can now be used to develop systems that give your customers the illusion that they’re buying from an actual store. So imagine what it feels like sitting on your couch, in your pajamas, and purchasing your favorite product.

AR and VR

Think about how satisfying it would feel to try them out virtually and have a smooth shopping experience. This is one of the best e-commerce applications for AI out there.

12. Detection of Fraud

Similarly, you can use AI to report fraudulent activity. AI will automatically detect duplicate emails and fraudulent activity on your e-commerce site. In the same way, it could also identify abnormal behavior automatically.

Detection of Fraud

A human auditor can retrieve other sources of information regarding the transaction and then take corrective action before the transaction pushes through. It lets you return or even cancel fraudulent purchases.

13. Predictions

In the same way, AI can predict what your customers want and need by analyzing historical data. Again, this helps you save time and money as a business owner in the long run.

e-commerce Predictions

For instance, Amazon uses AI to predict which products your customers will likely purchase and recommend them to others. As a result, it leads to better conversion rates and customer experiences in the long run.

So, these are the main areas of e-commerce where the sites have automated various tasks. These have made the trading of products much more accessible and time-saving.

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While ‘artificial’ may imply something negative, even dehumanized, AI helps you provide customers with a more personalized experience. With AI, it’s now possible for you to analyze millions of interactions daily and target a single customer. Moreover, the sales team is more empowered with the data that they have in their hands than ever before.

It’s now relatively easy for them to personalize the whole sales cycle using AI-driven apps that allow sellers to engage with the right people and send the right message at the right time. There’s no doubt that AI technology is going to have a significant impact on the e-commerce industry for years to come. While it would change, it will eventually enhance how people find products online.

AI is now widely used in today’s digital age, especially with rapidly decreasing attention spans. This evidence strongly suggests that AI-driven platforms are crucial to e-commerce success.

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Anne Carton is a small business consultant, designer and an enthusiast blogger working with Designhill, one of the fastest-growing custom design marketplace. She has authored several blogs, articles and editorials on various topics related to interactive content, concerning design, social media strategies, growth hack strategies, digital marketing and e-commerce. Facebook | Twitter

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