How is AI revolutionising e-commerce?

revolutionising e-commerce

Artificial Intelligence is such an integral component of how the world functions today, and e-commerce websites and businesses are no exception. AI has infused itself into our lives so seemingly, that most of us are using/interacting with intelligent machines and systems on a daily basis without even realising it. In fact, many popular e-commerce websites are already using AI to enhance and transform their businesses.

Read further, as we jot down a couple of ways in which businesses today are benefitting from using AI:

1.Understanding their data and customers

E-commerce businesses have an abundance of data – be it information about the customer, the sales, total number of orders from a particular area, products which are popular with which age group, etc.. What is more important is that this data is being generated on a daily basis, therefore, it is easy to imagine that we are dealing with huge amounts of data, making sense of which is understandably a challenge. AI assists in this challenge. It helps in structuring the data in order to obtain proper insights from it. Gaining such insights could be particularly useful for revising strategy and in devising a strategic sales plan. Making sense of the buying pattern of customers can help the business understand how their target audience is reacting to their product and how they can improve in the future.

2. Recommendations for customers


If you have visited the websites of Amazon, Myntra or Flipkart, you would understand what we are referring to. For example, when you search for a phone case or a bracelet, if you scroll further down, you are shown options of ‘Similar products’ or ‘You may also like’. The question to ask here is, how does the website know what to recommend to the user? The answer is – because of the intelligent recommendation systems which are used in the background. They understand what you are searching for and have data from previous customers (who have shopped on their website and their preferences). So, it displays results to you, which were checked out by them because there is a great likelihood that you may also like the same/similar product. It uses a data pool, collected over a variety of customers, to predict what you may like. This is beneficial for the customers, as they do not have to scout through tons and tons of products to narrow down on what they actually want as their choices have been refined.  

3. Chatbots 

Chatbots basically simulate the role of a salesperson when you go shopping physically to a store. It is a computer program which uses AI to stimulate human conversation with the customer. Again, if you have visited any popular e-commerce retailer, such as Nike or eBay, you must have observed that there is a prompt ‘How can I help’ or ‘What can I do for you’. Upon entering your query, the chatbot will display highly filtered results, almost as though you are interacting with a salesperson. They are highly effective low budget solutions to providing instantaneous online customer support.

In conclusion, e-commerce businesses are using AI nowadays, to provide a touch of personalisation to their customers. Not only this, they are empowered with information and insights about their data, which was not possible before.

Related articles:

  1. Top 5 A.I. personalization tools to increase e-commerce sales
  2. Examples of Successful E-Commerce and Shopping Chatbots
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