AI in eCommerce Industry: 6+ Use Case & Benefits (2022)

Daten & Wissen / Sept. 25, 2021

Artificial Intelligence is the most advanced technology through which human lives have become facile. Chatbots in eCommerce sites have greatly impacted user experience in positive ways and have improved overall productivity. Amazon has started using AI in their product recommendation system through which they clinch a positive impact on their revenue growth.

In this article, we will see how AI is transforming the eCommerce industry and what are the most important use cases which you can utilize for your eCommerce business transformation through Artificial Intelligence.

How AI can impact eCommerce experiences?

Between 2020 to 2027 the retail market will see a compound annual growth of 34% which is huge growth for the retail industry.

One of the main issues that eCommerce businesses face is low customer retention. There are lots of things that customers expect but when they don’t get that, they start looking for somewhere else.

By using an intelligent recommendations system you can solve the above hitch which will significantly retain more customers & will result in revenue growth.

Furthermore, we will know in detail what are the most important use cases of an AI in the eCommerce industry which have great potential to drive business growth.

AI Use Cases in eCommerce

AI-enabled digital assistants such as Google’s duplex can create the grocery list and place online shopping orders for customers. AI has the ability to predict the shopping patterns of any shoppers based on their past activity.

Let’s see what are major use cases of artificial intelligence in the eCommerce industry.

Chatbots based virtual assistants

eCommerce sites have integrated the AI-based eCommerce chatbot through which millions of customers’ hits are deciphered seamlessly in an instant. If your e-commerce website has not integrated with a chatbot, you may lose a lot of customers and may also impact the user experience.

To provide 24×7 support for your customers it is obligatory to have chatbots that can assist your end consumer & this is the great feature of ai in online shopping.

Let’s see some benefits of chatbots in eCommerce websites:

Retarget Customers

You can use AI-based retargeting solutions for both online and offline e-commerce businesses. In an offline store when customers enter a store you can use video analytics to retarget the customer based on their past purchase pattern.

For an online eCommerce site, you can use custom-built AI solutions that can examine all customers’ purchase history and can easily retarget them which will increase the engagement rate costing less expense.

Let’s see some benefits of retargeting the customers:

AI-based Product Recommendation System

An intelligent recommendation system uses the foregoing purchase history of the customers like what products are added in the cart, most viewed product, most searched product, etc. to recommend the best-suited product for customers.

Many studies show that online shopping sites have increased their conversion rate by 90% by using the AI recommendation system in their e-commerce website.

A recommendation system benefits consumers in great ways as they can get the best product recommendations that could be what they are searching for. 

Sentiment Analysis

NLP algorithm can detect differences between fake & real product reviews and can give notifications about those reviews which may lead to negative or positive brand impressions for your product.

You need to get the proper sentiments of consumers from their reviews and NLP based AI solution can give you great insights about customer sentiments through which you can improve your overall product quality.

Price Optimization

To predict the best optimal price for your products you will need an intelligent AI algorithm that can analyze massive amounts of data & suggests the best pricing option.

Price optimization techniques can lead to more conversion rates for particular products. Amazon uses price optimization capability to fine-tune its pricing strategy.

Before AI, price optimization was not easy, but nowadays, business owners are implementing Advanced AI solutions to increase revenue growth in the e-Commerce industry.

Demand Forecasting

Demand forecasting is one of the best forecasting models through which eCommerce businesses can predict the future demand of particular products with great accuracy & efficiency.

If you want to maintain a correct stock level of particular products then you will need historical data & a perfect algorithm to predict products’ future sales and how they may fluctuate. Time Series Prediction algorithms have the capability to predict the next 2 years’ future demand for particular products.

Although without an intelligence algorithm it is not easy to create a demand forecast system. Many businesses entail these types of AI solutions that can anticipate the customer’s expectations and get an edge over your competitors.

Website Personalization

It entails providing a customized experience to your customers when they visit your website and this is where AI comes to make this process easy for you.

If customers feel more valued & more connected when they land on your website, it becomes easier for them to make purchase decisions & yes! you should not ignore this powerful opportunity.

AI algorithms are designed in this way that they can deliver targeted offers to your customers based on their browsing behavior & which leads to direct revenue growth.

Nowadays there are so many eCommerce businesses that have integrated these types of AI solutions into their site which increases website personalization for the exceptional user experience.

How to bring AI into your eCommerce business

I hope after reading this valuable article about how AI is transforming the eCommerce Industry you would realize the power of AI solutions for transforming eCommerce businesses a step ahead of the competition. 

AI systems are already helping millions of customers to visualize products, creating a greater user experience & recommending the best match products for them.

Don’t be too late to transform your eCommerce business through AI as your competitors may start using AI solutions before you do. We ensure to build a world-class AI solution that can drive massive business growth with just small investments.

Read Also:

How AI is Transforming the FMCG Industry?

How AI is Transforming Pharmaceutical Industry?

Let's Wrap it Up

Because this is the era in which every business needs to acquire AI transformation in order to survive in the market and engage their customers.

We are experts at developing customized AI solutions. We are constantly updating ourselves in order to achieve greater precision.
We are happy to help you


Q: How is AI effectively changing the E-Commerce Industry?

A: E-Commerce companies are using AI solutions to provide the best customer experience such as AI-enabled chatbots and product recommendation systems which is effectively transforming their overall business and helps in building good customer retention.

Q: Which are the most common application of AI used by E-Commerce?

A: E-Commerce companies are increasingly using Demand forecasting, Price optimization & Chatbots which comes under the domain of Artificial Intelligence and helps companies to expand their reach and leverage their business.


Written by

Daten & wissen

Daten & Wissen is the team of expert AI engineers to help your business to embark on a transformational journey with the adoption of this futuristic technology.

How to improve FMCG operations using AI?

Fast Moving Consumer Goods sector plays a significant and vital role in India’s G…Read more

July 9, 2022
How to Improve Customer Retention with Artificial Intelligence

Customers today want to connect with a brand more than they want to purchase the items.…Read more

Oct. 20, 2022
How to improve Warehouse Security?

In supply chain management, the warehouse plays a very important role and is responsibl…Read more

June 23, 2022