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Artificial Intelligence in E-Commerce


Do you keep yourself tuned to the latest technological trends? Then you must be knowing about the recent technologies which are causing numerous changes in the business industry. Some words, that you can remember are artificial intelligence, the emergence, and popularity of cloud computing, changes in transactions because of cryptocurrency, and machine learning. In this article, we focus on the importance of artificial intelligence in e-commerce.

Artificial Intelligence In Present Day

Artificial intelligence is beginning to impact us in all parts of our lives. Be it any industry, right from healthcare to apps, AI is bringing us changes for the better. In the forthcoming years, AI is set to go to the fast mode with giants such as Microsoft and Google making large investments in this new technology.

In e-commerce companies, Artificial intelligence applications have taken over many departments. In fact, this new technology has given the best insights regarding customer preferences, generating new leads in customer segment and enhancing the experience of customers.

Fine? Now let us go into the changes brought about by Artificial intelligence in E-Commerce –

1. Customer Centric Search

Have you heard about Twiggle? It is an AI-based application that makes the e-commerce search engines to think exactly the way a customer thinks about for business. So, the words in Ads for Google and Facebook should be relevant. This tool makes use of AI and machine learning as well as natural language processing to improve the search results for every online shopper.

Now, let us move on to another company, called Clarifai. As per the company website, their software helps app developers build applications with a customer-centric experience. The two major methods it focuses are on video recognition and advanced images.

There is also an important benefit of artificial intelligence in e-commerce. Let us take a case study. One decade ago, if you want to purchase an item from a famous E-commerce store, you need to know the name or the product ID. But with AI at the helm in e-comm websites, you just have to take an image of the concerned item and post in the search item. This will help you to find a similar type of items through not only the same e-commerce store but also other stores. This is one benefit which you have to take note of Artificial intelligence in e-commerce.

2. Retarget Potential Customers

As per a survey conducted by the marketing analysis team of e-commerce websites, about 3 percent of leads do not get converted for various reasons. So, the persons who need a little push-through to get converted to prospective customers have not turned to buyers or clients. Just imagine the difference. If only these customers could get converted, then they will create a sizable difference in the profits section.

Now, how can AI turn a customer into buying a product? Let us take a situation. You are interested in buying apparel and costume from a reputed e-commerce website. Other than buying the dresses, you also spend time on checking the best mobiles in the market, let us say 5G mobiles. The website AI makes note of your staying on a long time on the mobile page, and sends you a discount or alert regarding discount offers for buying the 5G mobile. Through this method, the website can make buy a product.

In recent times, AI is also used to capture thieves. The law enforcement agencies make use of facial recognition software to identify thieves and fraudsters even though they have changed their facial features in malls and brick-and-mortar e-commerce stores.

3. Efficient Sales Process

Can you imagine the advertising section three decades ago? You got to know about the best products on radio, tv, and hoardings. And yes, two decades ago, there were the yellow pages. In recent times, the customer lives have been influenced by various segments such as social media and viral videos. For example, Snapchat has reinvented itself by emerging as a reputable marketing tool in the past few months.

AI has also made significant changes in customer service. So, you are working in a accounts company which has clients of home maintenance companies in Bangalore. These companies possess the best technicians for washing machine repair in Bangalore and for other home electronic appliances. When a customer wants to book a request with the company for washing machine repair, the call gets answered by a chatbot and not humans. Every customer in recent times wants to get the best-personalized experience from a customer service center. And these chatbots, programmed with AI applications specialize in using the right words to the customer who makes the call or uses the chatbox option.

4. Other AI Applications

Have you heard about The North Face, the e-commerce retailer? This company makes use of AI to get the best product for their customers. It makes use of the AI application by IBM known as Watson to better serve their customers. So, let us take an example. You want to buy the best jacket on the market. So, the AI tool asks you questions such as – when will you use the jacket? What color do you need and many more? Based on your preferences, it will scan the internet and find a suitable jacket. And will you believe it? This AI makes use of voice input technology.

5. Benefits of AI in E-Commerce

By the introduction of artificial intelligence in the e-commerce industry, the customers will get the best products for their preferences. So, AI has given the best ground for customers as well as businesses.

The AI enabled chatbots can also do other jobs. For example, they can automate manual processes in the logistics department where manual tasks happen again and again. Imagine a situation, when a customer has to check the product, put it in front of the scanning machine and then sends it for delivery. This is a job, that can be done easily with the machine. So, the AI machine can check the product, scan it and pass it for delivery. This saves manual labor and time, as the AI can complete jobs of two products in one minute. For the human to complete one product, it may take one minute.


Yes, there are other applications of AI such as virtual assistants and more. But we have focused on a few important aspects of artificial intelligence in e-commerce in this article. We plan to focus more light on other aspects of this new technology in digital marketing and other social media platforms in the future. Kindly stay tuned to the updates on our website by subscribing to our newsletter.

Author Biography

Ranganath M has done an MBA in Finance. He is also interested in photography. Presently, he is happy creating digital marketing campaigns for his home service company, Bro4u. He is an expert in creating digital marketing campaigns for bro4u and has helped the company attain trust in the minds of customers.

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