AI in e-commerce: Why e-commerce brands should consider artificial intelligence

AI in e-commerce is becoming a strategy that has the power to transform the industry scenario.

Phuong Trang

12/9/2024 5:21 PM

Every great invention has two births: the first is when the invention happens, and the second is when the invention becomes popular and reaches the masses. 

Artificial Intelligence (AI) is one such invention. It was first defined in 1950 and has rapidly grown in popularity today. AI is unexpectedly enhancing industries, and one of the industries that is being heavily impacted is e-commerce. 

How? In this blog, we will explain everything from the role and impact of AI in e-commerce to its future and benefits to the industry.

Generative AI and its role in improving e-commerce

The e-commerce industry has seen extraordinary growth, from demand generation to establishing itself in a competitive market. The industry has peaked, and the only fair way to stand out is to stand out. 

According to a survey by ResearchGate , by 2030, 70% of companies are expected to use some form of artificial intelligence technology in their business processes and operations.

While traditional AI techniques can be used to analyze data to perform tasks such as search engine optimization and algorithms, generative AI in e-commerce can generate new content such as graphics, text, and code. 

Generative AI and its role in improving e-commerce

Generative AI enables platforms to deliver more personalized, interactive, and seamless experiences, significantly improving e-commerce customer experience in a number of ways. For example: 

1. Enhanced visuals

Related generative technologies such as AI-generated images, AI e-commerce tools , viral models, animated text generators and other tools allow businesses to create high-quality visuals, videos and 3D models, which can effectively improve product displays, virtual showrooms and advertising materials, making them more appealing and visually appealing to customers.

2. Personalized product recommendations

By analyzing customer behavior, browsing history, and purchasing patterns, Generative AI provides personalized product recommendations, increasing the chances that customers will find products that match their tastes and interests.

3. Virtual try-on and fitting

In consumer goods businesses, generative AI can enable virtual try-on experiences, allowing customers to see how products like clothing, accessories, and furniture will look and fit in their home or on their own, enhancing decision-making and reducing return rates.

4. Natural language product description

AI generation is now being used in advanced tools such as text summarization tools. The integration of this technology into summarization tools has improved their ability to generate fully compelling, concise versions of specific product content. This means that e-commerce platforms can now provide customers with precise information about the products they offer, improving the overall chances of a sale.

How to Implement AI in E-commerce

By now, we hope you understand that AI in e-commerce is not just an optional strategy, especially with the advancements being made in AI. Remote Device Management Companies want customers, and customers want brands that can provide them with a seamless shopping experience. AI makes that happen.

How to Implement AI in E-commerce

But how can ecommerce brands incorporate it into their operations strategies?

Let's find out:

1. Define purpose and use cases

Identify specific areas of your e-commerce business where AI can add value. It could be personalized recommendations, chatbots, fraud detection, inventory management, customer service automation, etc. Prioritize use cases based on potential impact and feasibility.

2. Choose the right AI tools

When catering to a certain industry, it is important to choose a tool that can bring value to your business and help you overcome your shortcomings. The best option is to invest in an AI e-commerce tool that can provide you with AI-powered solutions, such as shoppable galleries , integrated social content to your website , etc. 

3. Gather actionable insights

AI systems use data to learn and make informed decisions. They extract data from a variety of sources, including customer interactions, purchase history, and website behavior, and use this data to create personalized ads and recommendations for customers.

Implementing AI in e-commerce can be challenging, but it also creates incredible opportunities for businesses to reach their customers more effectively. But that's not all: AI holds a ton of new possibilities to shape the future of e-commerce in incredible ways.

Read more: How AI is changing customer service and what you can do to keep up

The Future of Automation and AI in E-Commerce

AI e-commerce
Image credit: Search Engine Journal

It is no exaggeration to say that we are living in a digital transformation era. Many things we experience as mainstream today were merely “predictions” in the past, including concepts like voice assistants, smart home products, and of course AI. 

But what's noteworthy is that most of these technologies use artificial intelligence. Here are some interesting stats: 

  • Research shows that we are surrounded by AI-enabled devices everywhere: 77% of today's devices use AI technology in some form.
  • The AI ​​market is expected  to reach approximately $60.5 billion by 2025, up from $1.4 billion  in 2016 .
  • According to a Forbes study, AI will contribute $15.7 trillion to the global economy by 2030.
  • Using AI-powered tools and platforms can increase a company's productivity by about 40% .

In conclusion, the future of e-commerce automation and generative AI holds great promise for businesses and consumers alike. As these technologies evolve and intertwine, the world of e-commerce will witness unprecedented levels of efficiency, personalization, and innovation that will redefine how we shop and interact in the digital world.

The Benefits of Artificial Intelligence for E-Commerce Brands

So far, we have discussed the various possibilities and use cases of AI in e-commerce. However, implementing AI in e-commerce also brings various direct benefits.

The Benefits of Artificial Intelligence for E-Commerce Brands

These benefits will fundamentally change the way businesses engage with their customers and optimize their operations, resulting in unparalleled success and customer satisfaction.

1. Increased platform engagement

By leveraging the generative power of AI tools , e-commerce platforms can boost customer engagement by creating personalized, visually appealing content. Brands can use this content to improve their store's product pages, create personalized ads, and even create aesthetically pleasing Instagram feeds.

Additionally, the platform can also benefit from AI-driven voice commerce capabilities that enable seamless interactions, cater to customer preferences, and drive increased sales and revenue.  

2. Marketing campaign management

Marketing campaigns are a crucial strategy for businesses looking to expand their e-commerce. With the help of AI for e-commerce, businesses can execute marketing campaigns such as email marketing campaigns and influencer marketing campaigns with high precision. 

Capabilities such as advanced data analytics help you identify customer behavior patterns and optimize targeting and messaging, minimizing the chances of human error in campaign management, improving conversion rates, and making your marketing budget more effective.

3. Automate tasks to increase efficiency

AI features like chat assistants can help streamline your ecommerce operations by handling repetitive tasks that require more effort and 24/7 attention. These tasks include: inventory management customer support. With the right tools, these can be automated efficiently.

This increased efficiency allows remote employee time tracking HR departments to focus on strategic growth initiatives and provide better customer service, ultimately improving overall business performance.

Now, we know we’ve talked way too much about the “right tool” and the “right tool.” We understand that it can be difficult to find a useful tool that holistically meets all of your brand’s requirements. 

So, here are some AI e-commerce platforms that can help you.

The Best Artificial Intelligence Tools and Platforms for E-commerce

Here are some top AI tools and platforms that can help e-commerce brands:

The Best Artificial Intelligence Tools and Platforms for E-commerce

1. Neural Love

Neural.Love is a free AI image generator and enhancer dedicated to optimizing your images to fulfill your creative desires. With Neural Love you can easily transform and renew your images with artistic elements, filters and editing options.

This tool allows you to create a new image or edit an image already in your gallery. Just upload the image you want and Neural Love will magically redesign it to perfection.

2. Tagshop

Tagshop's   unique, AI-powered  UGC platform  seamlessly collects and curates social content from any social media platform, making your content shoppable for your users. Integrate it into your e-commerce store homepage, product pages, and emails. 

The tool comes with AI-driven features like auto-product tagging and product recommendations, which are beneficial for users as they save effort by automatically suggesting shoppable product tags that match elements in your content.

3. Vonage

Vonage is a conversational e-commerce AI platform powered by smart technology that offers a range of communication APIs (Application Programming Interfaces) that enable businesses to integrate various communication channels such as voice, messaging, and video into their applications and websites.

The tool's AI-powered conversational capabilities enable users to enhance customer interactions and provide personalized customer experiences in e-commerce. 

4. Copy.ai

Copy.ai is an AI-powered copywriting tool designed to help users create quality written content for a variety of purposes. The platform uses input from users to provide human-like text.

The tool can generate content for social media posts, blog articles, ad copy, product descriptions, email campaigns, etc. This AI tool aims to streamline the content creation process, save time, and help users create engaging and persuasive copy without the need for advanced writing skills.

Summary

The innovative integration of generative AI in the burgeoning e-commerce industry has brought about impressive advancements, and in 2024, these changes will bring a host of compelling benefits, including increased customer engagement driven by personalized experiences and visually appealing content. 

As the endless possibilities of AI in e-commerce continue to shape the e-commerce landscape, rest assured that we will guide you through the possibilities, benefits, and innovations that will shape the industry.