From Personalized Shopping to Smart Inventory: AI’s Role in E-commerce Success

Why AI is Key to Building the Best E-Commerce Platform

A significant number of modern users are afraid of such a new technology as artificial intelligence and are still skeptical about it. According to data from Heartland Portland, over 75% of respondents said that they feel skepticism, distrust or even fear of AI. The main fears here are the use of personal data against users’ interests, the depreciation of visual art made by people and the job losses. Despite the above challenges, artificial intelligence still contains significant advantages that can positively affect the work of businesses, in particular e-commerce. Here we can mention the following advantages:

• Enhanced customer experience. With automated AI tools, artificial intelligence is able to facilitate and automate the customer experience. A significant number of companies are already using this benefit, because improved personalization of the customer experience increases sales by 20-30%. In addition, accelerating and automating personalization tasks can reduce company costs by up to 70%. Thus, by introducing artificial intelligence into work, companies get more profit, and customers get more pleasure from shopping on a site where their needs are well understood.
• Data analysis for better decision-making. Using data collection and automatic analysis, e-commerce solution owners can better predict the course of a future marketing campaign, consider the next moves in advertising and selling goods, and also determine the direction in which the company should go.
• Fraud detection. Again, with the collected data, AI can easily track algorithms that are suspicious or anomalous. Artificial intelligence is also used to protect confidential data from cyberattacks and hacking.
• AI-powered recruitment. This artificial intelligence function involves scanning candidate resumes, evaluates the test task and helps recruiters make more appropriate conclusions about a particular candidate.
• Generative Content. Companies are increasingly using generative artificial intelligence to create visuals for their websites and products. Thus, e-commerce companies save money on artists and graphic designers and get a ready-made visual product with the help of the famous Midjourney, Playground, etc. In addition, many stock services like Freepik already have built-in functions with artificial intelligence: background removal, image enlargement, etc.

AI in E-Commerce: Creating Personalized Online Shopping Experiences

Despite its novelty, artificial intelligence has already established itself as an operational tool for increasing the company’s productivity. However, AI is most effective when company owners clearly know the purpose of using this new tool.

First, the owner must clearly know for what purpose they plan to use AI. Whether it is increasing sales, optimizing internal processes or generating text and visual content. Before introducing AI, the business owner must clearly define the main criteria that determine the final result of automation. For example, the desired revenue figure or the number of products sold.

After conducting the initial analytical work, the next stage is a data quality assessment. This is a necessary stage for introducing an AI model into operation, which must be trained on the basis of relevant, reliable and accurate data. If there are certain errors, duplicates and inaccuracies in the collected data, then additional cleaning is necessary.

The next step is to select the right AI model that meets the client’s basic requirements. The third step is no less responsible, because it is necessary to consider all the main advantages and disadvantages of a particular model. It’s also necessary to take into account how much the selected artificial intelligence model corresponds to the level of complexity of the problem that the client wants to solve.

After the preliminary analytical work has been carried out, the company owner and developers can introduce the selected AI model into the system. The integration of artificial intelligence into work should be thoughtful and consistent, taking into account the impact of AI on existing work processes. This thoughtfulness and consistency should be in order to avoid failures in implementation and increase productivity.

And the last stage: thinking through the ethics of using this tool. This is the main obstacle for those who still doubt the introduction of AI into work and one of the biggest concerns. Especially if it concerns generative artificial intelligence and the involvement of personal data, which will be repeatedly processed and modified. When using AI in your work, you need to make sure that this system is transparent, fair, and unbiased.

To sum up, integrating AI into e-commerce is a transformative journey for companies looking to thrive in a competitive environment. AI plays a critical role in redefining the meaning of e-commerce and taking online stores to new heights: from improving customer engagement through personalized interactions to optimizing operations and data protection.

Investing in AI solutions is a strategic move that can significantly increase the growth and efficiency of your e-commerce business. Using AI in e-commerce ensures that your online store remains relevant and successful in the ever-changing e-commerce landscape. It’s time to explore the benefits of AI and position your e-commerce store for a thriving future.