How AI Is Revolutionizing E-commerce

How AI Is Revolutionizing E-commerce

When artificial intelligence and e-commerce play together, this promising team is in it to win it. The evolution of AI is considered to be lustrous. The way technology progresses becoming more advanced in both understanding consumers’ needs and responding to them correspondingly already has a tremendous impact on their behavior. With the help of AI, store owners can make their businesses stronger, enhance the connection with the clients, and consequently increase their revenue. The truth is that the game is changing, technology is evolving, and artificial intelligence along with machine learning are becoming smarter each and every day. Let’s read more about how AI Is Revolutionizing E-commerce.

When AI and machine learning teams up with e-commerce, the opportunities for business growth are colossal. As a business owner, you need to know that implementing the strategies related to automation, AI, and machine learning to your site is a sure way to accelerate your store’s success. So, let’s go ahead.

Using Artificial Intelligence To Know Who Your Customers Are

Do you know who your clients are well enough? Among the things that AI is doing to revolutionize the industry is using big data to analyze your shoppers from cover to cover. This means much more than simply collecting information on who your customers and where they have come from, it is also about organizing and structuring the collected data in a way so that it can be used to its full extent. 

Let’s face it, by gathering data and analyzing patterns, artificial intelligence sheds the light on customer’s preferences and interests and, at the same time, avoids the “show everyone the same thing” approach. 

For instance, in the category page grids, artificial intelligence can rearrange products to show a visitor those items that they may like basing assumptions on their previous buys or searches. As such, another visitor browsing the very same category page will see a different pick. 

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Lots of online retailers are already using such a personalized product selection as “You may also like” and “You might be interested in the following products”. Take a look at the “You Might Also Like” section of the official ASOS website.

the personalized section on the ASOS website

Take another example: Alibaba, the world’s largest retailer company, makes use of an AI-powered algorithm called Tmall Smart Selection to recommend goods to the customers and engage them better. 

the personalized section on the Alibaba website

By all means, in many cases, business owners will have to hire dedicated Magento developers who specialize in e-commerce solutions to customize such sections on your website.

Filtering Fake Reviews

Fake reviews have always been one of the primary concerns for e-commerce brands and online retailers. People tend to trust online reviews as much as they trust recommendations from their friends. However, while your potential customers are looking for feedbacks submitted by real users, they may encounter fake reviews published by competitors. 

Some brands leverage the power of AI to eradicate suspicious reviews and help customers with authentic comments. Smart systems employ language processing methods along with machine learning to identify unusual patterns of text, formatting, writing style, and detect anomalies. Furthermore, those systems are getting smarter with more fake reviews. 

Assisting Customers 24/7 Via AI-Powered Chatbots 

Customer service is another skill that artificial intelligence uses deftly. While customer support agents have limited working hours, chatbots are always there whenever you need them. The AI-powered chatbots are trained to perceive and understand the current environment, can learn from training and previous experience, and can use “common sense” in vague situations. This makes them indispensable helpers, capable of answering customers’ questions in real-time.

The greatest thing about such virtual assistants is that they can imitate a conversation in a natural, human way. As such, chatbots can perceive people’s intents without keyword matching and steadily learn how to give accurate and relevant answers to customers’ questions. 

Image recognition to aid product discovery

Fast and efficient product searching is another outstanding AI ability. The visual search that finds the items based on similarities and resemblance is an amazing time-saver that, by all means, boosts customers’ satisfaction.

For instance, Amazon, one of the largest multinational e-commerce companies, provides this image search feature called StyleSnap to the customers. As such, the shoppers can upload pictures of fashion looks from their galleries and the website displays products detected in the image. Besides, deep learning behind the scenes makes it possible for the computer algorithms to identify sub-categories of items like fabric patterns, color, etc. 

Amazon’s StyleSnap

Implementing AR To Change The Game

Of course, the powerful augmented reality technology aimed at providing potential customers with the opportunity to virtually try on a product before buying is a key moment in e-commerce. The functionality is used by hundreds of brands around the world to skyrocket the UX, make their stores smart, and sell more products. 

As such, Ikea, a Swedish brand that designs and sells ready-to-assemble kitchen appliances, furniture, home accessories, was one of the early-adopters. The company has launched a brand new AR app that allows users to test IKEA’s products in a real-time environment through ARKit technology. The app automatically scales products proceeding from room dimensions by scanning the expanse of a place through a device’s camera. 

IKEA’s app with augmented reality

Following IKEA’s example, other niches also including cosmetics and beauty products, house decor and furniture, shoes, accessories, have implemented augmented reality to their websites and apps. With the help of AR, some online retailers can add a kind of virtual fitting room to their site functionality. 

For example, Sephora, another famous beauty brand, allows its potential buyers to try on various products that can be purchased from the online store with their AI-powered ModiFace mirror. Thus, the customers can see how, say, a mascara will look on their eyes. Certainly, this immediate try-on removes a lot of doubts, and buyers checkout the liked items with more confidence and enthusiasm.

Modiface mirror by Sephora

Summing up all the above, artificial intelligence is a central pillar and a steady-going partner for e-commerce projects. With the power of AI used properly in online retail, it will be much easier to understand the clients’ needs, enhance the overall UX, predict trends, and respond to customers’ problems. All of that can definitely lead to larger turnovers and help companies grow. 

Alex Husar

Alex Husar, a CTO at Onilab with 8+ years of experience in Magento and Salesforce. He graduated from Czech Technical University and obtained a bachelor’s degree in Computer Software Engineering. Alex’s expertise includes both full-stack dev skills and a strong ability to provide project-critical guidance to the whole team. 

Known for his amazing writing and technical blogging skills, Edward Thompson is the admin of the Techenger. Joined back in 2019, after moving from San Francisco to Chicago to switch from his role of staff writer to a guest blogger. Since then, he never looked back to his past. In nutshell, he is a tech enthusiast who loves to write, read, test, evaluate, and spread knowledge about the growing technology that surrounds mankind.

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