Artificial Intelligence (AI) is revolutionizing the world of e-commerce. Online marketplaces take advantage of AI technology to provide their customers with enhanced, personalized experiences. With AI-based chatbots, virtual assistants and product recommendations, e-commerce has become more dynamic and intuitive.


Moreover, machine learning has given e-commerce retailers opportunity to analyze massive amounts of data and apply predictive analytics, enabling them to customize product recommendations and provide customers with personalized shopping experiences.

How is Artificial Intelligence changing e-commerce and what benefits can companies expect from investing in this fast-growing technology? Learn how you can use AI in your e-commerce business. We suggest.


Artificial Intelligence and Synthetic Media


An important aspect of e-commerce design and development is personalization — making the right products available to the right buyers — all based on artificial intelligence.

A relatively new area of AI-assisted personalization is synthetic media. Synthetic media are all kinds of videos, images, virtual objects, sounds or words produced by or with the help of Artificial Intelligence (AI).

Many platforms help companies create content, e.g. render and enhance images (e. g., Luminar AI, Pixelmator Pro, PortraitPro, etc. ), create and customize content (e.g., Copysmith, Acrolinx, MarketMuse, etc.), create bots with a human voice (e. g., Resemble, BotTalk, IBM Watson Text to Speech, etc.).

Today, the development of artificial intelligence tools enables almost complete automation of content production. The goal is to reduce the time, cost and hassle associated with conventional content production. We encourage you to take advantage and try out the AI possibilities.


Product recommendations


Artificial intelligence allows an e-commerce site to recommend uniquely tailored products to shoppers and helps users to search for products using voice or image search engines. This approach underscores the limitations of brick-and-mortar stores – it isn’t possible to prepare product recommendations as quickly, for instance, by showing customers other types of creations in the store, as with the use of AI in an online store. That shows how artificial intelligence plays a key role in increasing e-commerce revenue share.

Using large data sets, AI influences customer choices by knowing their previous purchases, searched products and browsing habits. Artificial intelligence can also use visual data to provide customers with products similar to those they’ve already seen. AI can make recommendations in many ways.


  • Behavioral recommendations show users viewed or bought products by other customers.
  • Recommendations can be personalized based on each customer’s browsing history.
  • Content similarity recommendations show products with similar features or benefits.




Pricing strategy in e-commerce involves many factors and inputs. Pricing decisions are based on large datasets, which means that artificial intelligence will be very helpful in finding the answers.

Some companies provide automated processes that combine internal and competitive pricing with inventory data, which are executed in real-time. These continuous updates enable companies to apply a dynamic pricing strategy that is scalable, evolves and linked to their specific target profits.

Artificial intelligence also allows you to personalize prices. That means you can adjust prices and offers based on behaviour of website’s current users. You can even change prices based on global supply and demand. For instance, you can raise prices when competitors’ stocks are running low.


Chatbots and virtual assistants


AI-based chatbots can be particularly useful for e-commerce companies as they can provide personalized and flexible customer service, improve engagement and increase sales.

Chatbots can handle routine customer service queries such as order status and returns, providing 24/7 support, increasing customer satisfaction and reducing response times. In this way, they will free up employees to handle more complex problems. In addition, chatbots or virtual assistants can provide real-time updates on order status and shipping information, reducing customer queries and improving transparency.

Chatbots can use AI to deliver personalized sales and promotions based on customer data, increasing conversion rates and customer loyalty.


Inventory management


Effective product inventory management is about maintaining an adequate level of inventory that can meet market demand without creating surpluses.

AI-enabled inventory management systems use machine learning algorithms to optimize inventory levels, reduce waste and improve supply chain efficiency.

AI algorithms can analyze historical sales data, market trends and other factors to predict future product demand. That can help companies plan inventory levels and prevent shortages or oversupply. In addition, the algorithms will help analyse supplier performance data such as delivery time and quality metrics to optimise supplier relationships and improve supply chain efficiency.


Fraud Prevention


Finding effective fraud prevention strategies can impact on a company’s financial performance. Luckily, AI offers such solutions. By analyzing millions of global online transactions, AI-based machine learning can detect incorrect and suspicious behaviours and transactions.

For example, a customer may have placed an abnormal number of orders, entered a false address in the address fields, or omitted basic information needed to deliver the order. These details are impossible to detect and evaluate by employees in real-time.

Artificial intelligence models can quickly develop complex rules that help prevent the sometimes disastrous consequences of erroneous transactions.




Deploying AI to your e-commerce business can help you make strategic, data-driven choices, streamline tedious operational work, and hence scale your business much faster.

Contact us to find out how we can help you grow your e-commerce business.

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