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10 reasons to use AI | eCommerce in 2023!

10 reasons why AI will simplify and improve eCommerce in 2023!

With the beginning of the fourth industrial revolution, the prevalence of AI (Artificial Intelligence) has shifted from the status of experimental to essential in 2023. 

Today AI (Artificial Intelligence) has become a necessity because it has helped in reaching the right target audience through APIs. 

The value of AI was experienced by businesses with the global pandemic COVID-19. The customer needs round-the-clock services which were impossible during the pandemic, and that is how the growth of AI leaps and bounds on advancement. 

So, it is crucial to get training with AI, as the growth of this market can easily be felt with the coming of new models like GPT-4 and Google’s Brain, which would take us to next level. 

In this article, we will take a closer look at how AI can assist in the smooth functioning of eCommerce.

Table of Content

What is AI?

AI refers to Artificial Intelligence, which includes advanced technology based on algorithms, and statistical models that facilitate AI in mimicking and recreating human behavior. All the problems can be solved by AI which humans can’t do. 

Sundar Pichai, Google CEO considers the impact of AI on our evolution as a species will be comparable to fire and electricity.

AI assists in delivering an outstanding customer and user experience for retailers. The informed and intelligent decision is taken based on data collected by the AI. 

AI is a crucial part of e-commerce as it helps to boost engagement and interaction with digital touchpoints. It ultimately leads to sales and generates revenue.

10 Reasons to use AI in 2022

This is how artificial intelligence can help you who have an online store.  

AI has been one of the solutions for eCommerce to improve its sales. Automatic marketing and automatic newsletters are great tools to enhance your eCommerce sales.

AI helps the customer to purchase online with a personalized shopping experience. Already, the pandemic has enhanced the number of internet users worldwide. It is estimated that the global AI software market increased to US$ 119.78 billion in 2022. 

There are several reasons why there is so much emphasis on the use of AI for eCommerce.

1. Chatbots - automatic chat

Customer expectations are evolving day by day. There is a need to assist with round-the-clock services to enhance conversions and reach to next era of conversational commerce. This is how the significance of chatbots comes into the picture. 

Conversational AI chatbots hold an important place, especially during COVID-19. Chatbots assist the customer with a more tailored shopping experience through texts, messaging, speech, etc.

A chatbot is not only an effective and also a low-cost way of providing customer service 24*7. 40% of internet users prefer to converse with chatbots as compared to a virtual assistant. Therefore, it helped a lot of enterprises in reducing operating costs with the implementation of chatbot AI services.

It is estimated that by 2024, consumer retail spending via chatbots worldwide will reach $142 billion. The demand for chatbots has been increasing as more businesses, and consumers prefer them. 

Some of the chatbot startups like MobileMonkey and Chatfuel are very strong in funding which leads to a revolution in the chatbot industry.

2. Smarter logistics

AI assists businesses in providing them with smarter logistics. AI can smoothly handle orders and logistics, as logistic management is very challenging for companies with an increase in orders, and can lead to incorrect picking, slow shipments, and little time to focus on the core business.

3. Customer-oriented search functions

Most successful purchases start with research about the product. Therefore, it is crucial that search results are tailored to the customer with the help of AI. 

Search is not only based on keywords but also on the categorization of the products that would lead to the most precise match, and that is how AI facilitates potential customers to have a satisfactory customer experience.


4. Better follow-up of leads

Lead generation is the bread and butter of any business’ growth and development. Personal touch and automated technology define the future of every sector. However. 

Generating leads is very challenging, and at the same time very beneficial. We all know how Harley-Davidson with the help of AI, increased its NY sales leads by 2,930 % and realizes the importance of AI to everyone. 

With the help of artificial intelligence, customers who look at products can receive marketing material for the product in question.

5. Create a personalized shopping experience across devices

A personalized shopping experience for the customer across all channels and devices helps the customer to come back. AI ensures providing a personalized shopping experience that helps in saving time, and can also lead to repeat purchases.

6. Virtual assistants

People have started depending on voice search more like Alexa, Siri, etc. to get to know about the information of the product. People prefer voice search because it is easy, and convenient as compared to the traditional method of typing.

Also, voice search is helpful for the disabled too. It is estimated that there are 135.6 million people in the US who take the help of voice search.

7. Tailor-made recommendations for customers

AI helps in analyzing customer behavior, which helps in recommending the right solutions to the customer. 

You can also take the help of cross-selling and up-sell products by recommending different products to the customers at the checkout. This can lead to conversions with the assistance of tailor-made recommendations through AI.

8. Wearable technology for generating sales

Wearable technology like Apple Watch, FitBit, etc. has enhanced the implications for eCommerce retailers. Wearable technology collects data from the customer. 

They also recommend to the customer the products based on the view, taste, etc. With wearable technology, you can go cashless. You do need to carry your wallet as all the data is stored with the assistance of technology.

9. Fake reviews get tackled with AI

Fake reviews always disturb the reputation of the brand. Positive online reviews help the customer in purchasing the product, and on the other hand, negative reviews distract the customer journey. 

Star ratings play a pivotal role in informed purchasing decisions, and get their importance with the help of AI. Along with that, AI controls and boosts the prominence and weight of verified customer purchase reviews which would get boosted.

10. Focus on an efficient sales process

The pandemic has revolutionized digitalization. People are now no more interested in old traditional methods like the Yellow pages. 

It is a need to get digital asap. Companies need to solve their problems by focusing on integrating AI into their CRM to reach their potential customers at the right time. AI-like chatbots with their speedy solutions to customer enquire help in faster conversions. 

AI has started impacting eCommerce and it has started to evolve the sales process with new data.

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Contact us today if you have any questions. We have the expertise needed!

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