Application of Artificial Intelligence in eCommerce

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I know you’ve all heard about the popularity of Artificial Intelligence unless you live on an island! Artificial intelligence or AI is now in all business areas, and it has reached the point where it is considered essential. Considering this trend, everyone has started to use AI to analyze their customer’s buying behavior, understand their requirements, and promptly offer them the right products. 

Artificial intelligence is that intelligence that is demonstrated by technology or machines. It is an attempt to replicate human intelligence to simplify tasks by problem-solving. Using AI, the apparatus can make intelligent decisions in real-time. AI in the eCommerce industry is being utilized by the major tech giants such as IBM, Amazon, and Facebook. If you’re in the marketing game, you might have heard Elon Musk talking about how bright the future of AI is. If you want to know how AI is ruling the e-commerce world, read more!

Five applications of Artificial Intelligence in e-commerce

AI allows companies to sense, predict, and automate and improve the customer experience by doing so. E-commerce has become more saturated during the pandemic, and to succeed, it is imperative to implement more ingenious marketing methods. Imagine if you could analyze, understand, and organize data to work more efficiently? That is where AI helps, and this is influencing the eCommerce industry. Following are how AI is affecting e-commerce?

1.Smart technology

One of the biggest obstacles customers encounter when shopping online for personal items like makeup, clothes, shoes, and many other things are that they are unsure whether or not a particular item would match their style or look. This is an issue many retailers are grappling with since they want to encourage customers to get off the fence and make the purchase. Augmented reality combined with computer vision technology can help solve this problem. For example, people can try on individual makeup items in AR through their smartphones or computer cameras. 

Such technology requires landmark image annotation where data annotators place critical points along a person’s face so the application can recognize all of the facial features. This prepared training dataset would then be used to train the computer vision model. 

2.Product recommendations

Another primary application of AI is intelligent product recommendations. AI in eCommerce recognizes the customer’s choices and buying patterns and then recommends the products accordingly. AI goes through the customer’s searched products, previous purchases, and browsing behavior and provides them with products they will most likely be interested in. All of this helps to increase conversion rates. 


Have you ever used the ‘chat now’ option while shopping from your favorite e-store? The chat, now an option on most online stores, actually takes you to a bot programmed to entertain your queries. With AI data annotation, chatbots are becoming more advanced, and they are designed to be more effective by responding to either text or voice messages. 

4.Virtual assistants

More and more people are using virtual assistants, like Siri and Alexa, for shopping purposes. It allows them to purchase with a voice command which simplifies the shopping process. Such methods are suitable for buying self-explanatory products, like tissues, or even digital services, like films and music. For retailers, this offers an additional way to reach the customer and create more meaningful connections with them. 

    1. Increased Analytics

Since all of the shoppers’ actions are recorded by the system, you can use this data to get more significant insights into buying patterns of individual customers. This allows you to sell more products and reduce the items left on the shelves at warehouses. Any unsold items are costing you money since their value goes down the longer they sit there. 


The advent of Artificial Intelligence in e-commerce has made it easier to serve the customers while maintaining the security of your business. AI-based technology is proving to be very efficient and consistent in improving the customers’ shopping experience. AI has made it possible to analyze and understand millions of customer interactions every day and make decisions based on them. AI technology is having a huge and beneficial impact on the eCommerce industry!

Application of Artificial Intelligence in eCommerce

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