Artificial Intelligence in eCommerce and why do we need it

The use of artificial intelligence in different industries has the significant potential to become a powerful tool to boost the productivity and profitability of any business. In eCommerce particularly, AI can be utilized for increasing the conversion rate, optimizing the performance of a store, and making the customer experience better. Thus, let’s review some of the effective uses of AI in eCommerce and how merchants can get the most out of this technology.

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AI-improved recommendations

The collection of data about how customers interact with a store could be used to improve the recommendations. In particular, the search history, favorite lists, and amount of time customers spend on a specific page can provide information about what interests them the most and at what moment. Machine learning can calculate a customer’s interests and provide suggestions and cross-selling products that fit a customer’s needs. For instance, if a customer is interested in one type of shoes, an AI can provide suggestions about the clothing that can fit the style of these shoes. Moreover, these recommendations are crucial for email marketing and push notifications for customers about the deal they should not miss. The AI-improved recommendations could also involve calculating when a customer is more likely to buy a product and what deal might interest them. As a result, with the help of AI, an eCommerce website becomes more precise with figuring out what the customer really wants and providing the motivation to buy it.

AI-powered shopping experience and chatbots

With the help of AI, it is possible to implement virtual assistants that could assist customers with the selection of products and answering the customers’ requests. For instance, AI-powered technologies and assistants can help process customer requests through voice commands. The most evident example is Amazon’s Alexa which is capable of making orders with a voice command. Even though there should be more complicated integration of an eCommerce store into the existing technologies, virtual assistants can be in the form of on-site helpers, which provide suggestions to a customer on what can be a suitable product for them. One of the most popular forms of AI assistant/customer service is a chatbot which not only answers a customer’s inquiries and helps them resolve an issue but also can help make a purchase and find the needed product. As the statistic states, 27% of the customers are ready to make basic purchases through a chatbot. It is much more convenient and easier than a regular purchasing process. Therefore, investing in AI as part of the customer service and experience can increase a store’s conversion rate by simplifying and improving the buyer’s journey.

AI for inventory management

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Managing the stock and optimizing the supply and demand is the key to effective inventory management. Mainly it is due to the notion that an eCommerce store has to be able to provide the needed products when the demand is high and profit from it the most. However, it is also vital not to have leftovers. To optimize the inventory, AI technologies can be used to predict the demand, set the needed prices, and suggest discounting strategies to sell all the products effectively. Moreover, AI technologies can be utilized in logistics calculations to avoid shipment delays and stock shortages. Lastly, the power of AI in demand forecasting and logistic optimization is the key to consistently delivering what the customers need and can be the critical factor in winning the competition race.


It is undeniable that with the development of AI and Big Data, the opportunities for the eCommerce industry will only be increasing. For instance, the availability of AI-powered customer services, chatbots, improved recommendations, and inventory management makes the operations of eCommerce stores more efficient and profitable. One may also agree that with the future of AI technologies, the shopping experience for the customers will also benefit from the convenience and more precise recommendations.

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