Artificial intelligence (AI) is very beneficial in ecommerce today to deliver outstanding customer experience and make intelligent business decisions using consumer data...

Importance of Artificial Intelligence in Ecommerce

Artificial intelligence (AI) is very beneficial in ecommerce today to deliver outstanding customer experience and make intelligent business decisions using consumer data. Ecommerce uses AI in powerful ways in the online shopping space. 

Table of Contents

  • Chatbots and virtual assistants
  • Smart search
  • Personalization
  • Automation
  • Remarketing
  • Conclusion

AI has permeated our lives and is everywhere. Whether it is in a self-checkout counter at a store or in a check-in counter at the airport. After the pandemic, the ecommerce space has seen an upsurge. The revolutionary use of technology, social media and AI has ensured that ecommerce gives a wholesome and enriching experience to the customer. New ecommerce brands are now using AI to predict customer preferences and assess their needs even before they realize them. Many people use and benefit from AI without even knowing that they are using it.

AI can help eCommerce businesses personalize their marketing efforts and product recommendations based on customers’ browsing and purchase history. According to a report by Accenture, 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations.

How is AI used in ecommerce?

Chatbots and virtual assistants

Virtual assistants and chatbots use language processing and machine learning technologies to understand queries from customers and accordingly offer the required support. Virtual assistants are available 24*7 and can perform several tasks ranging from product research to handling inventory. AI-enabled digital assistants can also interpret voice-based consumer interactions. They can understand the customer’s needs through insights.

On an ecommerce website, customers use the search box to search for products. One of the most challenging things is to find the desired product that you are looking for. Keywords are used to search for a particular product. Smart search is a combination of search and merchandising and is often called “searchandizing”. Searchandising uses advanced techniques like search, navigation and other features. Product recommendation is another advantage that AI offers. When a customer is searching for a product, AI can make smart product recommendations similar to what you are searching for or based on your previous purchasing patterns.


In ecommerce, personalization is all about doing things according to your preferences, needs, pain points and tastes. AI can show you recently viewed products or create a personalized product list. All this can be done based on your click-through, browsing behavior and purchase history. Personalized product recommendations may result in impulse purchases and benefit the ecommerce website. AI can also cross-sell and upsell different products to customers who are checking out just in case they normally buy certain products which they may have forgotten.


AI can be of great help to ecommerce websites because they can automate customer support and save time, energy and operating capital. Repetitive tasks can be simplified and also front and back-end workflow can be integrated. AI can identify high-risk transactions and even offer discounts to loyal customers. Routine queries are easily handled by automated chatbots and only complicated requests need human intervention. 


Reminding the target audience about an ecommerce website is often called remarketing. Some people who are already your customers, may have left their shopping halfway before completing a purchase. AI can send push notifications and remind them of their pending purchase. Based on the behavioral purchase patterns of the customer or the most viewed/purchased items, AI can attract them back to your website by sending brief and direct push notifications. This helps customers when they are thinking of shopping the next time.

Also Read: What Is A D2C Business Model

Apart from all this, AI can also help with dynamic pricing. This means that with the access to correct data, AI can suggest possible pricing and discounts to be offered. AI can also help with demand forecasting. This means that certain consumer analytics can help monitor the changes in consumer demand and thus help in target marketing.


Today AI has revolutionized the ecommerce space. It changes the way an ecommerce website features and sells products to its customers. With the data collected by AI, businesses can make informed decisions, efficiently forecast future results and make adjustments to their marketing and pricing strategy accordingly.

Leave a comment