Artificial intelligence is transforming ecommerce 

Artificial intelligence – or AI – is a huge buzzword at the moment. More importantly, it is a technology that is developing at incredible speed. As it does so, it is impacting every area of our lives. 

Artificial intelligence refers to the ability of computers to think like people – that is, to learn, solve problems and make decisions. AI is especially powerful when it comes to finding trends and anomalies in datasets far faster than humans can. The results it generates are also being improved all the time because AI can learn from past experiences and apply what it has learned to future situations. 

AI and ecommerce 

It’s clear that AI has a major role to play in the future of ecommerce – an online industry that generates and uses huge amounts of data. Being able to understand this information instantly, and in granular detail, has the potential to completely transform online buying and selling, resulting in an improved experience for customers and better results for ecommerce merchants. 

What you really, really want 

Through the use of AI, product recommendation algorithms will become much more accurate. AI can analyse the previous behaviour of customers (for example, items they put in their watchlist or cart but didn’t ultimately buy, or items they have bought more than once), and make recommendations based on these. 

Online shoppers will experience AI-powered recommendations as being almost uncannily accurate; they may even receive suggestions for items that they didn’t even realise they wanted or needed. This will lead to more personalised shopping experiences, and customers will save time because they will see fewer items that they may not be interested in. 

When it comes to looking for perfect items, AI will enable far more accurate visual search results, again making search more accurate, intuitive and relevant. 

Online merchants will also be able to use AI to drive better and better chatbots, so that customers can receive the help they need 24/7, in terms of answers to their questions, and updates about product availability, specifications, pricing and shipping progress. 

Business as unusual 

In the same way that AI is transforming the ecommerce experience for buyers, merchants too can take advantage of this exciting new technology. Artificial intelligence can instantly spot sales trends from a huge mass of data, thereby helping sellers to focus on their most popular lines, and order extra stock in advance so that they can meet seasonal peaks in demand. 

The growth of AI could also bring dynamic pricing to ecommerce, similar to ‘surge pricing’ on Uber and Bolt. This will see prices for items rise and fall in response to changes in demand and could potentially introduce gamification elements into the online shopping experience. 

Online sellers will also gain increased protection from fraud thanks to AI’s ability to detect, prevent and even predict suspicious behaviour. Deliveries will become faster and more predictable as a result of AI’s route-planning capabilities, with more efficient routes also helping to reduce the carbon emissions produced by ecommerce deliveries. 

Overall, AI promises more profitable, efficient operations for merchants, and personalised, more enjoyable shopping experiences for buyers, in addition to improved customer service.