20 Powerful Ways To Use Artificial Intelligence In eCommerce

To compete in online business, retail companies use machine learning, deep learning, computer vision, and facial recognition. These technologies promote a better understanding of online shoppers, generate new leads, and provide an unparalleled customer experience. So if you are pondering how to use AI to benefit your ecommerce business, here is the answer.

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Artificial intelligence automation has already impacted so much of our lives, whether it is recognized or not. From Siri and Alexa to (almost) self-driving automobiles, artificial intelligence will govern the future. But how can we use artificial intelligence in eCommerce?

AI In Ecommerce1

In this article, we’ll look at some of the most effective and practical ways that retailers are incorporating artificial intelligence into their online shopping operations.

AI is beginning to pervade every area of our life. Artificial intelligence can be found almost everywhere, from self-checkout cash registers to improved security checks at airports.

In marketing also, artificial intelligence technologies are used to make automated decisions based on data collection, data analysis, and additional observations of audience or economic trends that may impact marketing efforts. AI is often used in marketing efforts where speed is essential.

If you do a little research, you will get to know that are also AI tools for content generation. Apart from AI writing Software, the market is also flooded with AI music generators, AI image generators, and more.

Thus, it is widely expected that AI will accelerate in the next years, with companies like Google and Microsoft already spending heavily on new AI programs.

Google’s £400 million acquisition of DeepMind, a start-up that specializes in algorithms and machine learning for positive impact, is just one of several projected purchases as the technology’s potential becomes a reality.

Other large IT companies, such as Facebook, IBM, and Yahoo, have already stated that artificial intelligence will be a new source of revenue.

If you search for AI on the internet, you’ll see hundreds of articles predicting a market ruled by artificial intelligence.

According to a recent Business Insider report, by 2020, up to 85 percent of consumer contacts will be handled without the intervention of a human.

Many eCommerce companies are already utilizing AI to better understand their clients, create new leads, and improve customer service.

However, how are they accomplishing this? Continue reading for a thorough list.

1. Create Customer-centric Search

AI in Ecommerce

Twiggle, a company that allows ecommerce search engines to think like humans, is currently led by Amir Konigsberg. Consumers often abandon eCommerce experiences because the product results displayed are often irrelevant, according to Amir in recent interviews.

Twiggle uses natural language processing to limit, contextualize, and eventually improve search results for online buyers to address this issue.

Clarifai, a US-based software start-up, is another company working to improve e-commerce search. Clarifai’s early work focused on the visual aspects of search, and the software is described as “artificial intelligence with a vision” on its website.

Through powerful image and video recognition, the company helps developers to create smarter apps that are the world like you do,’ empowering businesses to provide a customer-centric experience.

The AI program uses machine learning to categorize, organize, and visually search content by categorizing characteristics of the image or video.

YouTube recommendations and suggested playlists on music apps have been around for some time, one can see these recommendations becoming more relevant to your likes as time goes on. This is AI at work, which tracks the videos and the music you listen to most and come up with suggestions relating to the same.

It’s not just YouTube that’s using AI to create new search experiences.

As new software platforms that power eCommerce websites create innovative visual search capabilities, shoppers are rapidly saying goodbye to impulse control.

AI is enabling shoppers to discover complementary products based on size, color, shape, fabric, or even brand, in addition to finding matching products. Such software’s visual capabilities are truly remarkable.

The software can successfully assist the customer in finding the product they desire by first obtaining visual cues from the uploaded imagery. The consumer no longer needs to be in a store to find something they want to buy.

2. Retarget Potential Customers

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According to Conversica, roughly 33% of leads are not generated by the sales staff. Too often, the sales team loses track of the most popular services and goods on the market, and as a result, they are unable to attract new buyers.

Customer data is stored in AI systems, and the amount of time they spend on a given task is tracked. Using this information, Artificial Intelligence anticipates the next shopping day of these clients and highlights any discounts or deals that may be available for the things previously sought.

This would undoubtedly aid the expansion of an eCommerce business.

Face recognition, for example, has been used in the retail industry to catch shoplifters by simply scanning their faces on CCTV cameras.

Similarly, some firms are employing the same AI facial technologies to determine how long visitors spend in their stores.

This means that if a customer spends a lot of time on a product, such as a jacket, the data will be saved for the customer’s next visit and they will be shown recommendations based on their preferences, along with great discounts and bargains on that product.

3. AI Analyses Customer’s Data and Recommends Products

AI Recommendation

Based on a customer’s purchase history and search inquiries, artificial intelligence analyses the information and makes product recommendations. It aids in encouraging customers to return to the site again and visitors to remain in the location for an extended period of time.

This results in a sure-fire target being met, and the customers ultimately purchasing the product. Eventually, the customers are satisfied, and the retailers benefit from this by generating revenue.

4. Application of AI in eCommerce Chatbot Index

AI Chatbots

The all-new artificial intelligence chatbot is a powerful tool that has been programmed to converse with customers and to provide them with thoughtful solutions to their problems. It has the ability to learn and, as a result, understands the requirements of the customers. It is a cost-effective method of providing service to customers.

It does this by analyzing the specific query of the customer and directing them to the appropriate products. The AI chatbot is available 24 hours a day, seven days a week, and successfully conveys a sense of personal touch. As a result, it is very well received by the customers.

Once the chatbot system has been integrated with one of your shopping carts, it will be able to work with all of the stores that are built on the same platform as the first. The greater the number of shopping carts supported by your chatbot application, the greater the number of potential customers it has.

Another requirement is integration with a shopping cart, which allows specific systems to retrieve information such as product details, quantities, and shipping terms, which can then be used by chatbots to provide accurate answers to customers.

Conversational interfaces (chatbots) are a valuable customer service tool for eCommerce retailers. In addition to contact forms, phone calls, and email, we already know that there are several other effective alternatives. Online chat, on the other hand, continues to be the most efficient and, in many cases, the most convenient method for visitors to obtain answers.

5.  AI Generates Description of The Products

In an e-commerce business, the product description is the beating heart and soul of operations. Customers make decisions about whether or not to purchase a product based on its description. If the product specifications meet his needs, the customer may even choose to ignore the product image and place an order for it right away.

It takes a lot of effort and time to write down such a long and detailed description. Artificial intelligence (AI) generates an automated report of products by searching for related content on the internet. The keyword is used to conduct research, which results in the discovery of relevant details.

It has the ability to create and modify product descriptions as and when necessary. Any business team will find this to be a cost-effective and convenient process.

For example, Ecommerce Copywriting Tools like Jasper AI can generate amazing product descriptions.

6. AI Create A New level Of Personalisation Across Multiple Devices

Artificial Intelligence (AI) in e-commerce enables a new level of personalization that is independent of the device used to complete the transaction. For example, a user searches for a product in the portal of a particular website using his computer system as well as his mobile devices in most cases. In some cases, he may be unable to locate product availability due to factors such as low inventory or a product that has not yet entered the market.

The user’s browsing history is recorded by artificial intelligence (AI). When a new product is launched or becomes available on the website, artificial intelligence sends out a push notification to all of the devices on which the user has logged in to inform them of the change.

Due to the ability to complete the purchase directly through the portable device, this multi-channel marketing strategy improves the customer’s experience.

7. Improve dialogue systems

Using artificial intelligence, Amazon has begun to address well-known problems associated with dialogue systems, such as speech recognition, natural language understanding, and question answering.

Amazon, for example, can effectively convert speech (spoken by customers) to text with accurate results by employing a class of machine learning algorithms known as ‘deep learning.’

Additionally, Amazon is addressing the problem of automatically answering questions with artificial intelligence by leveraging content found on website pages such as product descriptions and customer reviews.

Customers may inquire, for example, “how many USB ports are there on this specific laptop?”

Some of the more complicated questions would be, “Does this camera work indoors?” and so on. Alternatively, “which of these two televisions has better image quality?”

Artificial intelligence is opening up new avenues for eCommerce retailers to engage with their customers.

8. Tackle Fake Reviews

Ai Reviews

Any seasoned online retailer will be able to tell you at least one painful story about the recitation of counterfeit reviews for their company’s products and services.

The amount of advertising that users are exposed to on a daily basis today can become overwhelming, causing them to put off making decisions, which can cause them to lose time. In this case, word of mouth has become significantly more valuable. If a customer’s friend has purchased your product and had a positive experience, it is likely that the customer will purchase the product as a result of the recommendation.

The report found that a whopping 90 percent of respondents who remembered reading online feedback stated that positive online feedback had an impact on their purchasing decisions. More specifically, 86 percent of respondents stated that negative online reviews had an impact on their purchasing decisions.

What makes you think these reviews are fake? This issue can be managed with the help of artificial intelligence, and here’s how.

Astroturfing is the term used to describe the practice of creating false feedback or reviews, and it is prevalent across a wide range of websites and services, including Amazon. As defined by the Federal Trade Commission, astroturfing is the practice of creating a fake or deceptive review or feedback that a reasonable customer would sometimes believe to be a trusted and neutral third-party endorsement.

When it comes to online shopping, customer reviews have emerged as one of the most important building blocks for building trust. When users are unable to physically inspect the products before purchasing them, the ratings and reviews of other users who have allegedly purchased the products can make or break a product. Some e-commerce retailers are collaborating with artificial intelligence to combat AstroTurf by placing a greater emphasis on helpful and verified reviews.

Amazon is experimenting with artificial intelligence to combat fake product reviews and the inflation of their favorite star ratings. Their AI machine learning system, which was developed in-house, ensures that the prominence and weight of verified customer purchase reviews are increased. Also given preference are reviews that have been marked as helpful by other users, as well as some of the more recent and up-to-date critiques on the site. The company is even reviewing the various review characteristics, such as ratings, in order to identify fabricated feedback. They are far more important to the company because they contribute to the development of customer confidence in Amazon.

9. AI Generates Post Sales Report

The automated customer service solutions segment of the artificial intelligence in eCommerce is responsible for after-sale services. They set up a follow-up process that is completely automated. During this process, AI deals with a wide range of after-sale issues, including warranty-related questions, complaints, returns, and refunds, among others.

The application of artificial intelligence in e-commerce has recently resulted in the development of a revolutionary solution. The prospect of what the future holds has piqued our interest even more. It frees us up to focus more on our soft skills while AI takes care of the more technical aspects of the software’s operation.

It unquestionably increases sales and revenue while also opening the door to new opportunities. As a result, artificial intelligence in eCommerce is the most recent smart technology that will bring about a significant transformation in our lives, which is something to be welcomed.

10. Autonomous Robot in The Warehouse

AI in Warehouse

The advancement of automated robots in warehouses has completely altered the landscape of the retail industry as a whole. When visitors arrive at the warehouse, the robots greet them and provide them with relevant information about the product while they are on a tour of the facility.

They are even programmed to assist their human counterparts in the process of dispatching and shipping the product to the customer. Additionally, they increase employee efficiency while decreasing employee costs as well. Additionally, they free up the time of the more experienced storekeepers, allowing them to devote their efforts to more meaningful endeavors.

Lowe, a home improvement store, is a good example of such implementation. Lowe introduced the first autonomous robot in late 2014, named the LoweBot.

11. Artificial Intelligence In Image Search

Ai Image Search

Have you ever been in a situation where you really liked a product or item but couldn’t put your finger on what it was or what it was called? Artificial Intelligence services make this task much easier for you to complete. It is only through the application of Artificial Intelligence that the concept of image search is becoming more widely implemented in eCommerce websites. The use of artificial intelligence has made it possible to comprehend images.

Buyers can even conduct a search on the basis of photographs with relative ease. Mobile apps for eCommerce websites can locate a product simply by pointing the camera at it with the device’s camera. As a result, there is no longer any need to conduct searches for the keyword.

12. Build An ‘Assortment Intelligence’ Tool

Customers are forcing most retailers to alter their pricing strategies as a result of their actions. It is also essential that multichannel retailers exercise flexibility when it comes to their pricing structures in order to retain the loyalty of their customers.

The use of assortment intelligence is becoming increasingly popular among retailers. This is a tool that provides an unprecedented level of 24/7 visibility and valuable insights into the product assortments of their competitors. Businesses can even keep an eye on their competitors’ product mix, which would be segmented by brand and product, as well as the percentage of overlap between the two products. This intelligence tool then provides a business with the ability to quickly and accurately adjust their own product mix and pricing in response to market conditions.

The ability to provide complete visibility into the products that are being offered in the market is a significant competitive advantage. Even retailers in a strong position can benefit from intelligence software, which can assist them in making specific assortment decisions, tracking the business impact of those decisions, and making planning decisions.

13. Create an Efficient Sales Process

As of right now, we have moved on from the era of old sales tactics, which consisted of picking a few names out of the yellow pages and cold calling them to find potential customers. Customers are increasingly drawn to some of the live visuals that they see on various social media platforms these days.

If you want to succeed in today’s market, where there’s fierce competition, you’ll need an innovative sales process for your company. Integration of artificial intelligence (AI) into your CRM system will be extremely beneficial in this regard. There are numerous artificial intelligence solutions that allow for the use of natural language and voice inputs.

As a result of this type of scenario, the Customer Relationship Management software will be able to respond to customer queries and solve their pressing problems in a more timely manner, providing an opportunity for the sales and marketing teams to expand the company’s reach. Some of the AI-driven systems are also capable of performing more than one task at a given point in time.

14. Handling Customer Data

As of right now, ecommerce platforms have an abundance of two things. One is a never-ending list of products, and the other is information. On a daily basis, ecommerce businesses must deal with the loss of information. This information can include anything from daily sales to a number of orders to the total number of items sold received in a particular area or even the entire country, among other things. It is also responsible for protecting customer information. It is impossible for a human to deal with a large amount of information at once. This data can not only be collected in a more structured manner but AI can also be used to generate the appropriate insights from this data.

This even aids in the understanding of customer behavior across the entire population as well as the behavior of a single purchaser. Understanding a customer’s purchasing pattern can even help eCommerce companies make changes where they are needed, as well as predict the next purchase a customer will make in the future.

15. Cybersecurity

Instead of taking a reactive approach to cybersecurity, a proactive approach is required. The ability to thwart attacks on online stores is enhanced when they have them on hand. Such scenarios present opportunities for machine learning to play a significant role.

When artificial intelligence is implemented correctly, it is possible to generate high-quality data. New threats, breaches, and even cyberattacks may fall into this category in the near future. Artificial intelligence can be used to detect anomalies in a network in today’s modern technology. When such issues are identified, team members can take the necessary preventative measures to mitigate the situation.

Machine learning comes to the rescue in this situation because it is faster than humans at identifying correlations. Any fraudulent activity can be avoided by identifying and blocking potentially malicious behavior. As an added benefit, it allows for a reduction in the number of time intruders spend within the system.

Such information can be gathered and centralized on a single server, which can greatly simplify the process for everyone involved. Once the server has been compromised, the information will be accessed. It is critical for businesses to make the necessary investments in security measures. Cybercriminals must be dealt with by more sophisticated tools with more advanced features than are currently available.

16. Implement Virtual Assistants

As the name implies, a virtual assistant is a computer-generated entity that lives within the software and communicates with the user in a human-understandable manner through the interface. It is a procedure in which a software agent performs tasks or provides services on behalf of another individual. These virtual assistants are most commonly referred to as Chatbots, and they are highly recommended for providing customer service through an online chat platform.

The virtual assistant has a number of additional capabilities, which are growing at a rapid pace at different stages, and which are being enhanced further with the help of a voice user interface. This collaboration with a virtual assistant may even be able to propel your company to the next level of success.

It is revealed that having an extra pair of hands can be extremely beneficial when working with a fresh set of ideas. As a result of their advanced training, virtual assistants (VA) are capable of working in a wide range of fields and performing a wide range of tasks at the same time.

17. Voice Command

A voice command system is a component of a machine that is programmed to recognize phrases and words in both spoken and written language and then convert them to a machine-friendly format. This software has a limited set of phrases and vocabulary words; they will only be useful in identifying phrases and vocabulary words if they are pronounced well and spoken in a clear and transparent manner.

This recognition is accomplished through the use of algorithms in conjunction with language and acoustic modeling. Acoustic modeling explains more about the relationship between the linguistic units of audio and speech wave signals than any other method currently in use.

The modeling language compares the sounds with the world sequences in order to correct the discrepancy between the words and sounds that are similar to each other. It is in such high demand right now that there are only a few names under which you can find this voice command assistant in our everyday lives, such as Siri and Alexa.

18. Automate Back-Office Processes

It is, without a doubt, one of the most successful applications of artificial intelligence in eCommerce. Back-office tasks such as manual mapping of products and the management of product data are all performed by this team member. In addition to being error-prone and time-consuming, these types of functions are also time-consuming.

You should put your efforts into automating these tasks in order to relieve stress and workload. When it comes to accomplishing this, the role of Artificial Intelligence comes into play. For the purpose of product categorization, image recognition technology is being used by the majority of e-commerce businesses.

Furthermore, Pinterest is utilizing this technology to assist its users in searching for a specific item within a photograph. Automation of back-office processes allows you to reduce your workload while at the same time freeing up additional time for more complex tasks.

19. Bridge The Gap Between Personalization & Privacy

Personalization is frequently accompanied by a trade-off in terms of the user’s privacy policy, which is discussed in more detail below. In recent years, user privacy has been a hot topic of conversation among politicians.

A large number of brands strive to provide customers with security, transparency, and honesty in their interactions with them. On top of that, they can’t even compromise on the process of personalization because they’re so concerned with achieving privacy.

The question that online store owners are now asking themselves is, “How do we resolve this issue?” This is a question that has them up at night thinking about it.

The answer is to make effective use of artificial intelligence. Users are always most of the time willing to share their personal information if they believe they will receive something of value in return for their information. For example, Google Now makes use of artificial intelligence to synchronize emails, calendar events, and search habits. In exchange, they provide you with a brief overview of what you will receive in accordance with the schedule. As a result, in this type of scenario, the user has no objections to others having access to some of his or her personal information.

20. Predict Services or Sales

If you search the internet for information on how artificial intelligence can benefit the e-commerce sector, you will find that the majority of search results indicate that AI can assist online store owners in forecasting sales or providing services.

By putting Artificial Intelligence to practical use in your business, you can quickly identify customer behavior patterns instead of having to work with you through massive data sets.

Netflix, the global leader in online entertainment media service, is utilizing artificial intelligence to predict what its users want to watch. Netflix has been successful in predicting what its users want to watch.

One of the most important takeaways from this point is that, once you have automated the interpretation and collection of information, artificial intelligence can assist you in the prediction of sales.

Conclusion

AI is no longer considered to be a significant part of emerging technology; it has now reached a significant level of maturity, and it has now emerged as the more pressing need of the hour in the eCommerce sector.

Furthermore, there are some obstacles to the widespread adoption of artificial intelligence that may make its implementation difficult. For many retailers, successfully implementing artificial intelligence will necessitate collaboration with third parties. This has even fueled the growth of many emerging artificial intelligence e-commerce startups, which assist businesses in harnessing the power of artificial intelligence to attract customers in a more effective manner.

Soumyajit Saha

Soumyajit Saha

Soumyajit is addicted to quality and has a passion for turning data into meaningful information. As a forward-thinking, technology-driven, and brilliantly creative software Analyst and Tester, he knows what it takes to ‘productize’ an IT solution or concept. Experienced in functional testing, quality testing, and front-end testing for Software Quality Assurance (SQA). Skilled at analyzing logs, generating thorough reports, and identifying any failures. Besides being a tech freak, he loves football and has a deep interest in Arts and Painting.

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