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July 27, 2022, vizologi

6 Ways Artificial Intelligence Is Transforming E-Commerce.

Artificial intelligence found its way into a wide range of industries, and it should come as no surprise. It can take care of mundane and repetitive tasks that bore human workers to death, as well as simplify a wide range of business processes. 

In fact, AI-based technologies have become so useful that most businesses rely on tools that would not be able to function without them. And that includes e-commerce businesses.

In e-commerce, AI-based solutions can make it easier for you to find and analyze valuable data, craft personalized recommendations for each customer, and reduce operational costs, among other things.

Would you like to know more about the things listed above? Below, you will find a list of six ways in which artificial intelligence is transforming the world of e-commerce. Let’s get started.

Forecasting and Analytics

First, it is worth noting that artificial intelligence can help you make well-informed decisions backed by factual data, preventing you from having to second-guess every choice you make.

According to industry experts – like – brand and pricing monitoring, in particular, has really benefited from artificial intelligence. AI technology has made collecting relevant information from competitors easier. Furthermore, it streamlined the process of deriving reliable and accurate forecasts for stock management, marketing outcomes, and sales.

AI can also come in handy when it comes to targeting potential customers and generating leads. It can analyze where potential customers are coming from, what things they are interested in, and which gender or age group they belong to. As a result, you can create the ideal buyer persona with ease and efficiency.


The main benefit of using AI lies in its ability to parse through large amounts of data and make accurate predictions based on the information stored in the input. When applied to gigabytes of customer information, artificial intelligence can help you create personalized recommendations for each and every customer, regardless of how many clients you have.

Using AI for this purpose can reinforce brand loyalty and boost sales significantly. You no longer need to worry about spending long hours studying your target audience. Instead, you can have AI do it for you.

How does it work, though?

In a nutshell, you need to provide an AI system with information about clients’ previous purchases, wishlists, searches, clicks, and page visits. It would also be best to “feed the machine” with data related to clients’ personal information, such as gender and age. With all that data, the AI can accurately predict what product a specific customer needs at the right time.

Fraud Detection

AI has effectively detected fake reviews on more than one occasion, which is fantastic news for retail companies. After all, just a handful of negative testimonies can have a devastating effect on a small business. Aside from failing to reflect a given product’s quality, they can significantly impact the customers’ buying decisions. Moreover, the said influence can be as strong as the influence of legitimate reviews.

Luckily, an AI system can identify fake reviews without much effort. Unlike a human employee or a potential customer, AI is not restricted to viewing just a few entries at the same time. Instead, it can analyze hundreds of reviews in a matter of seconds and, based on sentiment analysis, flag and remove the ones that are likely to be fake.

Voice and Visual Search

Voice search has become increasingly popular with customers in recent years. More than sixty million people in the United States alone own a smart speaker system, and close to sixty-two percent of people in that group use a voice assistant to shop online. 

The reason for that is relatively simple. Using a voice assistant to do shopping gives you an option to order quickly and receive a human-like response in return instead of a dry and plain order confirmation, helping build customer trust and brand loyalty.

Another practical application of artificial intelligence in e-commerce is visual search. It enables you to take a picture of a product and quickly find similar items. It is pretty convenient, as it eliminates the need to google inaccurate queries in searching for the desired product.

Customer Support

Likely, you have already had a chance to use a chatbot when looking for help with a product or a service. If so, you have already encountered one of the best examples of AI use in e-commerce.

A chatbot uses machine learning and natural language processing to interpret language, either written or spoken or both, and answer customer queries. If the AI works as intended, that interaction will resemble a normal, human conversation.

When it comes to customer support in general, AI is excellent at lowering operational costs, as it can provide each customer with round-the-clock support. Unlike a human employee, a chatbot does not have to eat or sleep and can act as a tireless and attentive helper twenty-four-seven, all the while preventing you from spending large sums of money on a team of customer support specialists.

Warehouse and Inventory Management

Did you know that you can integrate AI into inventory management? When used to analyze long-term patterns in customer buying behaviors, its predictive capabilities allow it to forecast which products will be required at specific warehouses and how much you will need to meet that demand. Consequently, AI can help you reduce overstocking expenses, cut down delivery times, and keep perishable items from spoiling.

In Conclusion

To sum up, AI has revolutionized the world of e-commerce, and the way businesses operate. Thanks to its accuracy, speed, and efficiency, it has become integral to many business processes.

You can use artificial intelligence for numerous purposes. Besides forecasting and analytics, you can use AI-based innovations in personalization, fraud detection, customer support, and warehouse and inventory management. The possibilities are truly endless!

So, if you are looking to stay ahead of the competition, you should consider using AI. While it might take some time to implement it into day-to-day operations, the results in increased profits and productivity are definitely worth it.

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