How Artificial Intelligence Can Boost Ecommerce Businesses


Artificial intelligence (AI) is one of the most exciting and rapidly-growing technologies in the world today. As reported by FortuneBusinessInsights, the global AI market size was valued at $328.34 billion in 2021 and is forecasted to reach $1394.30 billion in 2029. This increase is largely driven by the increasing adoption of AI across a wide range of industries, including ecommerce.

Artificial intelligence helps businesses to automate processes, personalize customer interactions, and make better decisions. Moreover, with the increased demand for artificial intelligence, the need for ecommerce app development services that can develop and deploy AI-powered ecommerce solutions is also on the rise. In this blog post, we’ll explore the benefits, use cases, and costs of AI in ecommerce.

Benefits of AI in ecommerce

There are many potential benefits of using AI in ecommerce listed below. However, an ecommerce app development company can help you personalize these benefits as per your business requirements.

Automating processes

Ecommerce businesses have to deal with a lot of data daily, from customer information to product catalogs. This data needs to be managed effectively to keep the business running smoothly. Fortunately, AI can help with this. AI apps can automate various ecommerce business processes, from customer support to inventory management.

This can free up time for employees to focus on other tasks, and it can also help to improve efficiency and accuracy. Amazon, one of the world’s largest ecommerce companies, is a good example of how AI can be used to automate processes. The company uses AI-powered robots in its warehouses to help with tasks like picking and packing orders.

Personalizing customer interactions

AI can help retail businesses better understand their customers and provide the most relevant information and recommendations. For example, AI can track customers’ browsing, purchase history, and social media activity. This data can then be used to create highly personalized customer profiles. These profiles can provide each customer with tailored results when they search for products on an ecommerce website.

By personalizing the customer experience, ecommerce businesses can increase customer loyalty and repeat purchase rates. Tech giant, Amazon, uses AI to recommend products to customers based on their past behavior, and Netflix uses AI to generate targeted marketing campaigns.

Making better decisions

In the world of ecommerce, AI can be used to make better decisions about everything from pricing to product assortment. By analyzing data from past customer behavior, AI can help businesses predict what items will sell well and at what price point. This information can then be used to decide what products to stock and how to price them to maximize profits.

Retarget potential customers

AI can also retarget potential customers who have shown interest in your products but have not made a purchase. For example, if you sell products on an online store, AI can be used to identify potential customers who have visited your site but have not made a purchase. AI can then be used to target these potential customers with targeted ads and special offers in an attempt to convert them into paying customers.

Create an efficient sales process

An AI-powered ecommerce platform can help you create an efficient sales process by automating repetitive tasks, such as sending follow-up emails and scheduling appointments. This can save you significant time, which can be used to focus on more important tasks, such as developing new products and marketing your business.

Reduce fraud

Ecommerce businesses are constantly under threat of fraud. AI can help reduce the risk of fraud by identifying patterns and anomalies in customer behavior. For example, AI can flag this behavior as potentially fraudulent if a customer suddenly starts placing large orders from a new location. Similarly, AI can also detect when an account is used to make multiple small purchases, which may be a sign of credit card fraud.

By using AI to monitor customer behavior, businesses can quickly identify potential fraudsters and take steps to protect their business. In addition, AI can help prevent future fraud by learning from past fraud cases and identifying new patterns. As ecommerce businesses become more reliant on AI, they will be better equipped to reduce the risk of fraud.

Implement virtual assistants

Ecommerce business is incomplete without a virtual assistant. Ecommerce app development companies are creating examples of next-generation ecommerce experiences by adopting AI-enabled chatbots. The ecommerce chatbot will enable businesses to keep their customers engaged in the purchasing journey and give recommendations accordingly.

With the help of data-driven ecommerce analytics, various businesses can enhance their customer service and improve customer loyalty. Also, they can use an ecommerce chatbot to take care of mundane tasks like product listings, order tracking, and other disciplines.

Manage shipping and logistics

The retail business needs a well-organized shipping and logistics process to ensure the smooth delivery of products to customers. AI can help businesses to track their inventory in real-time, predict customer demand, and optimize stock levels accordingly.

Also, they can use AI to reorder products when the inventory runs low automatically. This way, businesses can avoid the hassle of manual stock management and focus more on important tasks. Moreover, AI can also help businesses to track the shipping process and predict delivery times. This information can then be used to provide accurate estimated delivery times to customers.

Improve customer support

Customer support is one of the most important aspects of an ecommerce business. AI can help businesses to improve their customer support by providing accurate and up-to-date information to customers. For example, a fashion app named Stitch Fix uses AI to provide recommendations to its customers. The app collects data about the customer’s preferences and then uses AI to suggest items that might be of interest. This way, businesses can provide a more personalized customer experience and build loyalty among their customer base.

Improve chat systems

Chat systems are an important part of ecommerce businesses, as they allow customers to ask questions and get answers in real time. However, traditional dialogue systems can be expensive and time-consuming to maintain, and they often don’t provide the best customer experience. This is where AI comes in. AI-powered dialogue systems can help to improve the customer experience by providing faster and more accurate responses to customer queries.

In addition, AI can help to improve the efficiency of on-page chat system configuration, as it can automate tasks such as updates and upgrades. Now that we’ve gone over some of AI’s benefits and use cases for ecommerce businesses, let’s take a look at the costs associated with AI.

Costs of AI for ecommerce businesses

While there are many benefits to using AI for ecommerce businesses, there are also some costs associated with AI. These costs can be divided into two categories: the cost of implementation and the cost of maintenance.

Cost of implementation

The cost of implementing AI can be significant, as it requires businesses to purchase or lease the necessary hardware and software. In addition, businesses will need to hire AI experts to design and implement the AI system. This cost can vary depending on the size and complexity of the AI system.

For example, a small business that wants to use AI for customer support might only need to spend a few thousand dollars on implementation, while a larger business that wants to use AI for lead generation might need to spend tens of thousands of dollars.

Cost of maintenance

Once AI has been implemented, businesses will need to spend money on maintaining the system. This includes updating software and hardware, monitoring data, and troubleshooting problems. The maintenance cost can vary depending on the size of the AI system and the frequency with which it needs to be updated.

For example, a small business that uses AI for customer support might only need to spend a few hundred dollars per month on maintenance, while a larger business that uses AI for lead generation might need to spend several thousand dollars per month.


AI can be a valuable technology for ecommerce businesses, providing benefits such as improved customer support, increased sales, and combatting counterfeit products. However, AI also comes with some costs, including the cost of implementation and the cost of maintenance. Overall, the benefits of AI for ecommerce businesses typically outweigh the costs. If you’re thinking about using AI for your ecommerce business, start by considering the benefits and costs associated with AI.

YouTube: How can Artificial Intelligence be used in businesses? (Bernard Mar)

Photo credit: The feature image is symbolic and has been done by Vitalik Radko.

This guest article has been submitted by Emily Connor. While we appreciate guest contributions, it's important to note that the views expressed by the author are not necessarily reflective of those held by TechAcute.

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