AI in Ecommerce: How It's Used

Reading time4 minutes
Jaqueline Corradi
Jaqueline Corradi
Content Manager

As artificial intelligence technologies are developed, they are implemented in several sectors to help optimize multiple tasks. That's the case when the subject is AI in ecommerce. It can help you offer a more personalized customer experience, automate processes, diminish the risks of eros, and so on. 

Artificial intelligence no longer belongs to science fiction movie scenarios, and is part of our world. Learning technologies may benefit the ecommerce industry, but it's fundamental to understand how AI works to know how you can use it. Check out the article to know more. 

6 Ways AI in Ecommerce is Used

The image shows a digitalized brain

AI in ecommerce can be implemented in multiple ways. It will help you take data-driven decisions, save time, and increase productivity. Companies like Meta and Google are already investing in AI initiatives because they see its potential, if you don't want to fall behind, it's important to keep yourself updated. 

1. Product Recommendations

You can use AI in ecommerce to gather and analyze data about your customers and make more accurate product recommendations. The items suggested to the clients will be based on their previous purchases and their browsing history on your website.   

Machine learning analyzes the information available about the customer, and identifies the type of items this person is likely to find interesting. It's an automated process, data-based, which increases the chances of enjoying sales opportunities. As the AI learns customer behavior, the data scientists' intervention becomes less necessary. 

2. Pricing Optimization

There are several factors that determine a product's price, which include the number of products available and if there is a high or low demand. When the demand is big and the stock is scarce, the price tends to go up, for example. 

If you implement artificial intelligence in your online store, you may set it up to change the prices automatically, according to this dynamic. The pricing system will be regulated based on the supply and demand variation. 

3. Customer Segmentation

Artificial intelligence is also very useful to segment customers based on the information you have about each one of them. You can use AI to categorize them by region, age,  and the types of products customers buy, for instance. 

By segmenting customers, you have the opportunity to develop different marketing strategies and sales approaches for every category. Instead of using the same campaigns and message to talk with all your customers when AI segment them, you can define targeted actions that consider the particularities of each group. 

4. Sales and Demand Forecasting

Another option to implement AI in ecommerce is to forecast the number of sales that will happen in a period of time, along with the increase or decrease in demand for specific products. You will provide relevant information about your company's sales history, market variants, and other data that may influence sales, then the AI will cross the information and make predictions.

Since the forecasting is data-based and the AI learning and analysis process is very accurate, it's likely that you will get predictions as close as possible to reality, This way, you build strategies considering the changes the market may suffer. You can take decisions according to what the AI reveals, instead of just guessing. 

5. Virtual Assistants

Virtual assistants such as chatbots, Alexa, Siri, and Google have the potential to deliver more personalized experiences when people are browsing on the internet, the same happens in the buying process. You can install a chatbot in your online store to assist customers. 

Usually, the chatbot window is placed on the side of the ecommerce pages, the user only needs to click on it and type their question. Then, an automatic answer will be sent based on the messages you have set up for each question. The chatbot can even have a proactive use, where a message will pop up from the window, for example, suggesting a specific product based on the user's previous purchases.  

6. Personalized Customer Experience

One of the main uses for AI in ecommerce is personalizing the customer experience. From customer segmentation, to product recommendation, you can use artificial intelligence to analyze customer behavior and suggest actions based on their preferences. 

When you provide a personalized experience, you increase the chances of closing a sale and retaining a customer because the service offered is tailored according to the person's needs. In such a competitive market such as the online one, sometimes all that can distinguish one store from another is how the customer is treated, and people value when they have a good experience. 

How to Integrate AI in Ecommerce

The first step to implement AI in your ecommerce business is to define what goals you aim to achieve with artificial intelligence use. This will guide you to choose the best AI model that suits your company needs. 

Some companies are already building their own AI, but you don't need to do that. Several CRM (customer relationship management) software provide their own AI, with an easy-to-use interface. 

If necessary, you can hire third-party expertise to show you how to proceed with AI implementation and give you directions. Make sure to prepare your team, so they will know how to handle the AI and make the most use of it. In the beginning, you may need to make some adjustments, tests are part of the process. Follow up on the results closely to improve continuously.

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