The role of artificial intelligence in eCommerce

Jérôme de Guigné
6 min readJan 23, 2023

- Written by DataHawk

Artificial Intelligence (AI) is revolutionising the way eCommerce businesses operate and interact with customers. From automated customer service to personalised product recommendations, AI is helping eCommerce companies increase efficiency, improve customer satisfaction, enhance product search and discovery, and drive sales.

Incorporating AI technology into the eCommerce pipeline offers many advantageous opportunities for optimising mundane business processes. But it’s just as important to consider the potential pitfalls associated with AI before adopting such practices as they can significantly impact the success and efficacy of the AI implementation.

How AI is influencing eCommerce

Among the many ways AI technology impacts the eCommerce industry, five areas, in particular, have been entirely transformed by AI. These areas include improved customer experience via chatbots, more effective marketing campaigns thanks to personalisation, enhanced inventory management through predictive analytics, competitive pricing strategies based on sales forecasting, and product listing optimisation from machine learning technology.

1. Improved customer experience

One of the most significant ways in which AI is impacting eCommerce is through the use of chatbots. Chatbots, which are computer programs designed to simulate conversation with human users, can be integrated into eCommerce websites and mobile apps to provide customers with instant assistance, answer frequently asked questions, and even process orders.

By automating customer service, chatbots help eCommerce companies save time and money while providing customers with a hassle-free shopping experience.

2. Better marketing campaigns

Another influential application of AI in eCommerce is personalisation. For instance, AI-powered algorithms can analyse customer data, such as browsing history, purchase history, and demographics, to create personalised…