Artificial Intelligence Use Cases
in E-Commerce

E-commerce has been advancing in leaps in the past decade, bringing the seamless shopping experience closer to Internet users. The benefits of online shopping platforms are numerous. They are available 24/7; you can always study the entire product range without leaving your home; online payment and convenient delivery are available for most users. Due to this added flexibility and convenience, the number of digital buyers has exceeded 2 billion in 2020, with around 25% of the global population shopping online.

The advent and commonplace introduction of artificial intelligence (AI) solutions in e-commerce have also contributed to further expansion of the industry's outreach, mainly due to the improved customer experiences, a greater degree of customization, and improved products and services AI enables. This article explores the major use cases e-commerce businesses can explore in 2020 to advance their operations to a new level.
product recommendations using ai

Benefits of AI Introduction in E-Commerce.

The key benefit of AI for e-commerce businesses is its ability to process large volumes of data and learn based on the data input to give better output. With AI solutions, businesses understand their clients better, offer more relevant products, choose the best timing and pricing for their business offers, and derive accurate and reliable analytical data from their business data.

The key areas in which AI promises sizeable improvements for e-commerce operations are:

  • Service personalization
  • Product and service offering improvement
  • E-commerce platform improvement
  • Customer service advancement through a customer-centric approach
  • Improved marketing and sales outcomes
  • Better supply chain management

Service personalization with the help of AI works the best in terms of website personalization and the introduction of advanced recommendation systems. Once clients are offered personalized search solutions, smart product grouping, voice and visual search options, and smart autocomplete features, their search becomes more productive and hassle-free.

Improvements in product and service offerings are achieved with AI-enhanced pricing optimization technologies, image tagging and recognition, auto-generated product description, and self-checkout systems. Businesses also benefit from introducing conversion rate raise and optimization software and retail analytics, advancing their business-related decision-making.

Website performance can also be transformed with the help of AI, mainly through the introduction of review and forum moderation software, marketplace moderation, AI systems of customer behavior tracking, and better communication channels with chatbots.

At the level of customer service advancements, AI can aid with chatbots and voice assistants, visual search options, and customer demand anticipation systems based on smart customer preference tracking and analysis.

Marketing and sales may reach new heights with the help of AI if the businesses apply AI solutions for lead generation, lead scoring, automated report creation, campaign analytics, and prospective customer identification. AI solutions can help you generate new leads. For instance, the AI solution for Getty.

Mintigo provided an AI solution that helped Getty to find more leads via analysis of their website content and identify cases when companies used images of Getty's competitors.
In terms of security, AI is now a leading source of adaptive, forward-looking cybersecurity solutions keeping sensitive business and customer data intact. AI systems based on machine learning employ smart adaptive algorithms to analyze unstructured data and ensure more precise cyber threat identification.

Use Cases of AI in E-Commerce.

After considering the general areas of improvement in which e-commerce businesses may apply AI, we proceed to a more in-depth review of concrete use cases. This review can suggest a range of paths for you to enhance business operations by taking them to a new level with AI software and technologies.

Individualized Customer Service.

1. The ease of search is one example of good customer service that clients are looking for today. A good case is that of the voice search offered by Sephora. The overall potential of smart, AI-enhanced voice search for e-commerce companies is immense, with over one-fourth of all mobile users currently using voice search as their primary search option. Moreover, the demand for voice assistants is growing, signaling about greater reliance of customers on voice search.

Visual search is also an innovative feature most forward-looking e-commerce platforms are gradually introducing to attract more clients. The technology found an application in both offline and online retail points. Virtual fitting rooms and visual product search form the cornerstone of the modern customer-centric approach. An excellent example of using this AI technology is the Chinese Moda Polso. Another one, Mi-Ality, is a virtual fitting kiosk installed in many flagship brands' shops in Canada, e.g., Gap, Old Navy, American Eagle, and Levi's, among others. Among e-commerce businesses, SpecSavers was one of the first to offer the virtual try-on feature.

Thus, implementing a handy voice and visual search on your website can boost sales and increase customer satisfaction.

2. The quality of customer support is another aspect of high-quality, modern customer service. Contemporary e-commerce platforms solve this issue with extensive use of chatbots for automated yet responsive and smart customer support. Today's AI-enhanced chatbots can resemble the human style of conversation and consult customers on a wide variety of issues. Besides, the application of machine learning (ML) in chatbot systems lets them learn from interactions with people, sounding more human-like, and processing more inquiry types with time. Illustrative examples of advanced use of chatbots in their e-commerce operations are Amazon and eBay.

Not all people like talking with chatbots; the latter also do not possess competency and intelligence equal to humans. Thus, at times, customer support can't end with the chatbot's provision of relevant information. To keep track of your clients' needs and see when the chatbot doesn't cope with the task, you can even employ an AI mood tracking technology. One of the first companies to use it was Shop Direct. The technology keeps track of the customer's tone in messages or voice to detect a moment of frustration or irritation. In case such a mood change is detected, the client is immediately redirected to a human customer support representative.

3. Smart autocomplete is also an illustration of how the e-commerce platform can anticipate the client's needs and queries, thus serving them quicker and better. The global champion of smart, AI-powered autocomplete is Google; its system accumulates the big data from global searches and produces complex analytics on what a user may need based on their (and other people's previous searches). Amazon went one step further and introduced AI-powered product re-ranking based on the users' search. Thus, its product display resulting from an autocomplete search is sorted out to enhance the related items' mutual attractivity. You can read more about the world's most complex ranking AI algorithm, BlueBoard, here.

Product and Service Improvement.

AI has made it possible for businesses to improve their product offerings and services in many ways, most of which aim to make the client's experiences better. There are many ways of helping one's customers to choose the right items with the help of AI. For instance, the smart gender targeting and product grouping at ASOS reduce the time an average buyer spends on the website several times. These technologies let the clients see only the products fitting them and allow them to buy ready-made combinations of clothing to use outfits already created for them by ASOS stylists.

Another dimension of client segmentation and AI analytics of customer behavior is the technology of dynamic pricing. Currently available AI solutions for implementing it on e-commerce platforms include SellerActive and FeedVisor, among others. These systems analyze customer behavior on the platform and provide suggestions for flexible price changes throughout the day, week, or even year to capture the seasonal or daily customer activity fluctuations. As a result of such a technology application, retailers can increase both revenues and sales volumes by offering the right things to clients at the right time.

Business Function Improvement.

Apart from making customers happier, businesses can utilize AI technology to make their back-end office operations simpler and more affordable. One of the ways in which AL serves the e-commerce business owners' needs is the ability to produce human-like product descriptions. Obviously, such descriptions are still far from those written by human copywriters in terms of cohesion and flow, but imagine a marketplace with thousands, if not millions, of items. Completing descriptions for all of them manually would take years and thousands of dollars, while ML algorithms can do it in days at an affordable price. Some of the best-known AI solutions for content writing include the Adzis content engine and the Ginnie.ai product description generator. A well-known e-commerce company using AI product descriptions is the Chinese Alibaba.

Surprisingly, AI can also help companies address the problem of fake reviews. The review war has become a popular tactic for drowning competitors on Amazon, so the retailer currently exploits this AI feature to delete reviews written by fake customers or chatbots.

Marketing and Sales.

AI has proven quite effective in driving the companies' marketing efforts and sales up. Besides the dynamic pricing approach discussed above, companies use AI in many more ways. For instance, AI can provide robust analytics and sales predictions. One of the illustrative examples is the Personali platform applied by JD Sports and resulting in a 332% conversion in one of the brand's campaigns. Another striking example is Amazon's anticipation of customer purchases; it is known that Amazon uses AI to ship products to clients before they place an order on the website. Incredible, isn't it?

How to Implement AI in Your Business?

The statistics on AI use in e-commerce are very attractive, pointing at an immense potential value of introducing AI solutions right now to see sizeable gains in the key business metrics very soon. If you're one of those planning the introduction of AI on your e-commerce platform, first decide on the type of technology you need and the aspect of e-commerce operations you wish to address. This may be:

  • Big data and IoT solutions
  • Cognitive computing and ML
  • Inventory and supply chain automation products
  • Customer service/customer-centric/ personalization solutions

Most businesses come across some initial barriers to AI adoption, mostly including a lack of vision, expertise gaps, bad data, completing technology priorities, a lack of consensus on the path of business transformation with AI, or unclear use cases. Each of these problems can be addressed effectively to jumpstart the use of AI. Universal tips for business owners to overcome the AI adoption bottlenecks include:

  1. Approaching the AI introduction pragmatically.
  2. Identifying specific, relevant use cases to follow.
  3. Basing the AI introduction process on accurate data.
  4. Choosing affordable and robust AI solutions perfectly tailored to their business type, scale, and needs.
  5. Looking deeper into the AI concept to learn how it works.

Datrics, Your E-Commerce AI Solution Provider.

In case you're determined to transform your business with AI and reap the benefits it offers, it's high time to find a reliable and knowledgeable provider of customized AI solutions. Datrics has been working for years in the AL and ML industry, developing innovative software products and meeting customer needs for cutting-edge AI solutions. Turn to us today to explain your business needs and expectations from AI. We'll consult you on the currently available AI/ML opportunities, showing how our services can help your business make a leap in your niche.
Do you want to discover more about Datrics?
Drop us a note to follow-up on any issues, support requests or enterprise plans.
Your feedback matters!

Read more