AI empowers e-commerce: How does AI big model lead the transformation of the e-commerce industry?

As one of the most cutting-edge technologies, AI big models are gradually penetrating into all aspects of e-commerce, from user experience to supply chain management, profoundly affecting the future development trend of the industry.

Phuong Trang
November 18, 2024

In today's digital age, the e-commerce industry is facing fierce market competition and ever-changing consumer demands. This article will discuss in detail the application of AI big models in e-commerce, and deeply analyze the commercial value and potential market opportunities it brings.

1. Core technologies of AI big models and their role in e-commerce

The application foundation of AI big models is the organic combination of multiple core technologies. These technologies work together to provide strong support for the e-commerce industry.

Core technologies of AI big models and their role in e-commerce

A deep understanding of these technologies and their specific roles in e-commerce is the first step in our exploration of the application of AI big models.

  • Deep learning : Deep learning is a technology that simulates the human brain's neural network for data processing and can process complex unstructured data such as images, text, and sound. In the field of e-commerce, deep learning is widely used in user behavior analysis and personalized recommendation systems. Through deep learning of user browsing history, shopping behavior, and preference data, e-commerce platforms can accurately recommend products to users and improve purchase conversion rates. For example, Amazon's recommendation system relies on deep learning to analyze the shopping data of millions of users to provide personalized shopping suggestions.
  • Natural Language Processing (NLP) : Natural language processing is a technology that enables computers to understand, generate, and communicate with humans in natural language. In the field of e-commerce, NLP is used to improve customer service quality and user experience. For example, NLP-based chatbots can respond to user inquiries in real time, quickly solve problems, and improve service efficiency. In addition, NLP can also be used to analyze user comments and feedback, helping e-commerce companies to adjust product and service strategies in a timely manner and optimize user experience.
  • Computer vision : Computer vision enables machines to understand and interpret visual information, such as images and videos. On e-commerce platforms, computer vision is used for automatic classification of product images, similar product recommendations, and augmented reality (AR) try-on experience. With computer vision, users can upload photos and find similar or related products, which greatly improves the convenience and accuracy of shopping.
  • Intelligent robots : Intelligent robots have been widely used in the logistics and customer service fields of e-commerce. Automated robots in warehouses can quickly complete picking and packaging tasks, greatly improving logistics efficiency; while online customer service robots can provide 24-hour service to solve various problems encountered by users during the shopping process. These robots not only improve operational efficiency, but also reduce labor costs.
  • Autonomous system design : Autonomous system design technology enables e-commerce platforms to automatically complete complex tasks, such as automatic pricing, inventory management, and market forecasting. Through autonomous design and optimization, e-commerce companies can quickly respond to market changes and reduce operational risks. For example, the automatic pricing system can adjust the price of goods according to market demand and competitors' prices, thereby maintaining a competitive advantage.
  • Data mining : Data mining technology can extract valuable information from a large amount of user data to help e-commerce companies conduct precise marketing and strategy formulation. By analyzing users' purchase history, browsing history, and social media interactions, e-commerce platforms can better understand consumer needs and formulate more effective marketing strategies, such as targeted advertising and promotional campaign design.

Read more: What Companies Need to Know Before Investing in AI Technology

2. Wide application of AI big models in e-commerce types and industry modules

The application of AI big models in the e-commerce industry is not only reflected in the improvement of the technical level, but also has a profound impact on different types of e-commerce models and various industry modules. By deeply analyzing these applications, we can better understand how AI big models reshape the e-commerce ecosystem.

Wide application of AI big models in e-commerce types and industry modules

Upgrade and transformation of e-commerce types 

  • Shelf e-commerce : The traditional shelf e-commerce model relies on linear display of goods, and the user experience is relatively simple. However, through AI technology, e-commerce platforms can dynamically adjust the order of product display to optimize the user's shopping experience. For example, based on the user's historical browsing and purchase records, the platform can prioritize the most relevant products to increase the user's willingness to buy.
  • Social e-commerce : Social e-commerce is a model for promoting and selling products through social media platforms. AI big models can identify potential customers by analyzing social data and customize personalized promotional content for them, thereby improving conversion rates. For example, AI can analyze users' social media interactions, predict their shopping preferences, and push relevant product information to them.
  • Interest e-commerce : Interest e-commerce focuses on meeting users' personalized interest needs. By analyzing users' interest graphs, AI can accurately recommend products related to users' interests and enhance their shopping experience. For example, for users who are keen on a particular hobby, AI can recommend related products, content or community activities to enhance user stickiness.
  • Instant Retail : Instant Retail relies on fast product delivery and the ability to meet user needs instantly. AI big models can predict users' immediate needs and optimize delivery routes, thereby shortening delivery time and improving user satisfaction. For example, by analyzing users' geographic locations and historical order data, AI can predict users' potential needs and allocate goods to the nearest warehouse in advance.
  • Private domain e-commerce : Private domain e-commerce emphasizes the long-term maintenance and value mining of user relationships. Through refined user data analysis, AI can help companies better manage and operate private domain traffic, thereby increasing the lifetime value of users. For example, AI can develop personalized marketing plans based on user consumption habits and preferences to increase user repurchase rates and loyalty.

Innovative application of industry modules 

  • Supply Chain Management : In supply chain management, AI technology is used to optimize inventory management, logistics scheduling, and supplier selection. By predicting market demand and analyzing data from all aspects of the supply chain, AI can help companies reduce inventory costs and reduce supply chain risks. For example, AI can monitor inventory levels in real time and automatically replenish stocks based on sales data to avoid inventory backlogs or stockouts.
  • Content creation and display : The application of AI in the field of content creation enables e-commerce platforms to automatically generate high-quality product descriptions, pictures and videos, improving the user shopping experience. For example, AI can automatically generate attractive copywriting based on the characteristics of the product and optimize the display effect of the picture, thereby attracting more users to click and buy.
  • Operation and marketing : AI big models can improve the overall efficiency of enterprises by analyzing user data, formulating accurate marketing strategies, and automating operation management. For example, AI can analyze users’ shopping paths and behavior patterns, identify key factors that influence purchase decisions, and adjust marketing strategies accordingly, such as providing coupons when users hesitate.
  • Search and recommendation : The application of AI technology in the field of search and recommendation has greatly improved the shopping efficiency of users. By analyzing the user's search terms and historical behavior, AI can provide users with more accurate and personalized search results and recommended content. For example, the image-based search function allows users to upload a picture, and AI automatically identifies and recommends similar or related products.
  • Customer service and customer management : The application of AI big models in the field of customer service enables e-commerce companies to provide more intelligent services and optimize customer relationship management through data analysis. For example, AI customer service robots can automatically answer common questions and transfer complex questions to manual customer service when necessary, thereby improving service efficiency. At the same time, AI can also analyze customers' purchase history and feedback information to help companies develop more effective customer retention strategie.
Innovative application of industry modules 

Read more: What is digital conversion? 4.0 trend: Digital transformation

3. Practical application scenarios of AI big models in e-commerce: from concept to implementation

Practical application scenarios of AI big models in e-commerce: from concept to implementation

The actual application scenarios of AI big models in e-commerce are extensive and diverse, covering all aspects from product design to customer management. Understanding the specific applications of these scenarios not only helps to understand the actual implementation of AI technology, but also provides practical references for enterprises.

  • AI product design : AI big models can help companies optimize product design by analyzing market trends, user feedback, and competitor product information. It can predict future market demand and guide companies to design products that better meet consumer expectations. For example, AI can analyze a large number of user reviews, extract the pros and cons of a product, and help designers make improvements and innovations.
  • AI supply chain management : In terms of supply chain management, AI big models optimize the efficiency of each link through a data-driven approach. From procurement to inventory to logistics, AI can monitor and optimize in real time to reduce waste and delays. For example, AI can predict demand fluctuations in different regions and adjust inventory distribution in advance, thereby reducing logistics costs.
  • AI marketing : The powerful computing power of AI big models makes precision marketing possible. By analyzing user data, AI can customize personalized marketing content for each user, such as personalized ads, coupons, and recommended products, to improve the accuracy and effectiveness of marketing. For example, AI can identify the user's life cycle stage and push corresponding marketing information according to different stages to improve the user's conversion rate.
  • AI operations : AI technology makes the daily operations of e-commerce platforms more automated and efficient. AI can optimize the platform's operational strategies, such as product pricing, promotional activities, and inventory management, through data analysis, thereby reducing the need for manual intervention. For example, AI can monitor market dynamics in real time and automatically adjust product prices based on competitors' pricing strategies to maintain competitiveness.
  • AI virtual digital people : Virtual digital people are innovative applications of AI technology in e-commerce, mainly used for brand promotion and user interaction. Virtual digital people can not only act as customer service and answer users' questions, but also act as brand spokespersons to interact with users emotionally, thereby enhancing brand influence and user loyalty. For example, virtual digital people can play the role of hosts in live streaming and improve the live streaming effect by interacting with users.
  • AI customer service and dialogue system : AI customer service systems have been widely used in e-commerce, and can handle a large number of user inquiries and provide fast and accurate answers. AI dialogue systems can not only understand the user's intentions, but also provide more considerate services through context understanding and sentiment analysis. For example, when a user is hesitant about a product, AI can proactively provide relevant discount information or recommend alternative products to help users make decisions.
  • AI customer management : AI big models can help e-commerce companies better manage customer relationships and develop personalized customer maintenance strategies by analyzing user behavior data. AI can identify high-value customers and increase their loyalty and repurchase rate through personalized services and offers. For example, AI can predict users' future needs based on their purchase history and push relevant product information or promotions at the appropriate time.

Read more: EDUTO's AI Library

4. The profound value and future prospects of AI big models for the e-commerce industry

The profound value and future prospects of AI big models for the e-commerce industry


The application of AI big models
not only provides technical support for e-commerce companies, but also brings far-reaching value to the entire industry. These values ​​are reflected in multiple aspects, from traffic acquisition to user experience, to the improvement of overall industry efficiency. AI big models are shaping the future of e-commerce.

  • Reconstruction of traffic logic : In traditional e-commerce, traffic acquisition often relies on large-scale advertising and channel promotion. However, the introduction of AI big models has changed this logic. Through accurate user portraits and behavior analysis, AI can push the right products to the right users at the right time, greatly improving the conversion rate and acquisition efficiency of traffic. For example, through AI's accurate recommendation system, companies can significantly reduce the cost of acquiring new users while increasing the frequency of users' purchases.
  • Improved user experience : AI big models significantly improve user experience by providing more personalized services. Whether it is accurate product recommendations or intelligent customer service, AI can provide users with a more convenient and considerate shopping experience. For example, a personalized recommendation system can reduce user selection fatigue and help them quickly find their favorite products, thereby improving overall shopping satisfaction.
  • Improved industry efficiency : The application of AI technology not only improves the operational efficiency of enterprises, but also promotes the improvement of the efficiency of the entire e-commerce industry. By optimizing supply chain management, inventory control and logistics distribution, AI can help enterprises reduce costs and increase profits. For example, AI can improve the utilization rate of funds by predicting sales, optimizing inventory levels, and reducing unnecessary inventory backlogs or out-of-stock situations.
  • Reduction of enterprise costs : The automation and intelligent application of AI big models have helped e-commerce companies reduce operating costs in many aspects. Whether it is automated customer service, intelligent logistics, or precision marketing, AI can significantly reduce dependence on human resources and reduce the labor costs and management expenses of enterprises. For example, AI customer service robots can handle most routine customer inquiries, greatly reducing the customer service costs of enterprises.
  • Function substitution and human resource optimization : The application of AI big models has enabled many traditional e-commerce functions to be automated and intelligent, thereby optimizing the human resource allocation of enterprises. Through the application of AI, enterprises can free up human resources from highly repetitive and low-value work and focus on more innovative and strategic work. For example, AI can automate order processing and payment, reducing the error rate and processing time of manual operations.
  • Expansion of market opportunities : AI big models not only help companies gain higher competitiveness in existing markets, but also open up new market opportunities for companies. Through accurate market analysis and user demand prediction, AI can help companies discover unmet market needs, launch new products or services, and seize market opportunities. For example, AI can analyze user search data, identify emerging consumer trends, and help companies plan new categories in advance to gain market advant

V. Conclusion

The widespread application of AI big models is profoundly changing the ecology of the e-commerce industry. From technology-driven to business model innovation, AI provides e-commerce companies with unprecedented opportunities. Through deep learning, natural language processing, computer vision and other technologies, AI not only improves user experience, but also significantly improves industry efficiency and corporate profitability. With the continuous advancement of AI technology, the e-commerce industry will usher in a more intelligent and personalized development model. Only by actively embracing AI technology and seizing the opportunities in this transformation can companies remain invincible in the fierce market competition.

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