7 Significant Impacts of Artificial Intelligence on Ecommerce

Artificial Intelligence

We live in a technologically-driven world. Everything from what we see, how we work, and how we interact with our surroundings, all are impacted by technology. This huge adoption of innovation is not only making our lives more comfortable but also encouraging organizations to integrate technologies into their business processes. One of the most popular technologies transforming every industry is Artificial Intelligence. Amongst all industries, Artificial Intelligence has significantly impacted the eCommerce industry. Many eCommerce businesses have already incorporated AI in their business operations to achieve better results. This blog covers the 7 significant impacts of Artificial Intelligence on eCommerce and how businesses are using the technology.

An Introduction to Artificial Intelligence

Artificial Intelligence refers to intelligent machines that can efficiently perform functions and activities on their own. These AI-powered machines are designed in a way that they can think and behave like a human.

This capability has prompted businesses to leverage Artificial Intelligence to enhance their business efficiency and productivity. Over the years, the AI market has witnessed tremendous growth. In 2016, the global market for Artificial Intelligence was around 3,221 billion US dollars. It is expected to reach 89,847 billion US dollars approximately by 2025.

Major Impacts of Artificial Intelligence on Ecommerce

The present AI market worldwide is introducing numerous opportunities since innovation is the key to success. The value and benefits of this cutting-edge technology have compelled marketers to incorporate AI into their business.

Furthermore, several B2C/B2B eCommerce solutions like Magento, are also coming integrated with AI technology to help businesses deliver a more personalized experience and drive more sales.

Below are some of the most popular techniques an eCommerce app development company can leverage AI technology.

  1. Chatbots for Enhanced User Experience

To thrive in the industry, businesses are now focusing more on creating a seamless user experience. Many retailers and merchants have understood the potential of Artificial Intelligence and integrated techniques like Chatbots to enhance the customer experience.

So, what is a Chatbot? In simple words, it is a computer program, developed in a way that it can efficiently interact with the users like a human.

Big eCommerce brands like Amazon, H&M, and Walmart heavily rely on chatbots for responding to customer queries. Since chatbots answer in conversationally, they have gained a lot of popularity amongst businesses and customers. When a customer talks to bots, it seems like they are talking to a human.

Moreover, chatbots respond instantly, eliminating the need for customers to wait for a long time.

AI-based chatbots are trained to answer queries in the most relevant manner. It comprehends and learns from the user interaction and stores and uses them to give answers in the future.

Chatbots not only enhance the user experience on the app but also boost the productivity of businesses. Bots can save a lot of time for the employees who have been assigned for responding to customer queries.

  1. Effective Inventory Management

Keeping a track of everything in a company regularly is a painful process. However, you need to keep your product inventory up to date all the time. The predictive capability of Artificial Intelligence has greatly helped in effective inventory management.

Based on how AI works, it gathers and analyses the key factors that drive the demand for important requirements in the market, predicts future market demands, and that provides the companies with the advantage of knowing their inventory needs.

Today, there are several multichannel inventory management solutions out there that are integrated with Artificial Intelligence. These solutions enable retailers to manage inventories across various channels and make their lives easier.

  1. Easy Customer Searches

Considering the user perspective, it could be difficult to find exactly what you’re looking for. Of course, customers can spend hours trying to find things on search engines, however, the possibility of finding that exact thing is very rare.

Fortunately, Artificial Intelligence can address this problem perfectly. AI helps customers find what they are searching for more naturally.

For example, the Go Find application allows you to click photos of whatever you like and it will display similar-looking results from its stores.

Additionally, Amazon’s Echo Look uses an AI camera to give recommendations about what looks best on the customer.

Artificial Intelligence in eCommerce is eliminating the need for typing search terms to find something. It is enabling users to use visuals to search for products, making the process even more interesting and convenient.

  1. Interactive Sales Process

In today’s highly competitive market, it is quite challenging to reach out to customers and provide them with the most relevant services. Therefore, it is important to integrate AI in managing customers’ time efficiently. AI knows and understands the preferences of users before offering any customized solutions.

Furthermore, it deploys users’ time only on relevant areas. It ensures that they do not see any irrelevant and inappropriate products or recommendations.

For instance, the ‘North Faces’ leverages IBM Watson to obtain answers to users choice related questions like “Where will you be using the jacket?” to offer the most suitable products.

  1. Enhanced Personalization

No matter who the user is or what they want, they are likely to seek personalized experiences on the app. Instead of generalizing user requirements, AI algorithms can be used to offer personalized content to users. This would further enhance and optimize the user experience.

For example, if a user browses for a superhero t-shirt on a website from their laptop, they can receive advertisements about any sales or offers based on their search. They see these ads on their social media platforms such as Facebook, Instagram, etc. from their smartphones.

  1. Virtual Assistants

The introduction of virtual assistants like Alexa and Siri has made the lives of people more convenient and changed the way they do their shopping.

By assisting in practically all tasks users perform on a website or application, virtual assistants have made eCommerce a profitable and successful sector.

Virtual assistants help in a variety of tasks such as navigating users from one location to another on the app, placing their orders, or finding something for them, integrating virtual assistants in eCommerce solutions has taken the user experience to the next level.

  1. Business Intelligence Data Analytics Integration

Integrating Business Intelligence in eCommerce can give access to sales trends based on customers’ online shopping experiences, preferences, reactions to promotions, purchasing behavior, and other patterns that impact sales. All these data can help eCommerce business owners to increase their sales and revenue.

Therefore, the integration of Business Intelligence data analytics in eCommerce can be a beneficial investment for businesses.

Top Brands Using Artificial Intelligence in Ecommerce

In today’s hi-tech world, many leading eCommerce brands are revolving their entire businesses around AI technology. Their focus on innovation has helped them thrive in the eCommerce industry.

Here are some of the top eCommerce brands that have incorporated Artificial Intelligence into eCommerce.

  • Amazon –Alexa, Amazon’s cloud-based voice service, has helped customers to interact with the technology they use daily and boosted eCommerce sales tremendously. Besides, Amazon also Amazon Go, a tech-based shopping store, that allows customers to enjoy their shopping experience when they enter the store.
  • eBay –One of the pioneers in the industry, eBay has integrated AI into eCommerce to gain a competitive edge. eBay has introduced eBay Shopbot, which users can access through Facebook Messenger. The bot behaves as an assistant and helps users in performing tasks on the app.
  • Alibaba –The Company launched Tmall Genie which is designed to perform tasks like monitoring the user’s daily routine schedule controlling smart home gadgets, or checking the weather. Alibaba also has Ali Xiaomi (Ali Assistant), which is its own chatbot that responds to both verbal and written queries.

Wrapping Up

These impacts of Artificial Intelligence on eCommerce are just to name a few. AI is being used in various ways to transform the operations of eCommerce businesses. Over the years, AI technology has evolved significantly, and hence, its scope is likely to grow more in the future.

As a leading eCommerce Magento development agency, we build innovative Magento stores and solutions infused with cutting-edge technologies, including AI. We have observed how the implementation of AI in eCommerce has helped businesses enhance their customer services and user experiences. And therefore, we have incorporated AI in our Magento eCommerce development strategy to help businesses drive more sales.

As an enterprise, if you want to survive in the market competition, you should invest in AI-based Magento store development services and solutions.

We offer flexible engagement models to hire Magento developers who are experienced in building future-proof Magento stores powered by Artificial Intelligence. Get in touch with us to discuss your requirements and we’ll provide you with the best solution.


Q.1. How is data analytics used in eCommerce?

Ans. Integration of data analytics in eCommerce can help retailers analyze the customers’ behavior and determine how the website or application should be structured based on a customer’s preferences. They can also identify the product landing page that is most likely to engage the customer, and convert them by encouraging them to purchase.

Q.2. How AI integration into Magento stores can improve sales?

Ans. Here’s how you can use AI to boost your Magento eCommerce sales:

  • Chatbots
  • Product Recommendations
  • Context-based Search
  • Virtual Product Try-on Experiences
  • Automated, Multi-channel Inventory Management
  • Personalization
  • Prevent Fraud and Scams
  • Retargeted Marketing, etc.

Do You Have More Questions? Feel Free to Ask Our Magento Ecommerce Experts.



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