8 Ways AI Is Changing Ecommerce

Published on July 18, 2023

Whether you were ready for it or not, AI is here and significantly changing the online space, especially when it comes to ecommerce. But, there’s nothing to fear! In fact, the introduction of AI into ecommerce is good news for you.

The tools that AI has introduced into the ecommerce landscape will allow business owners, managers and marketers to get deeper insights on their customers, enabling them to make smarter decisions when it comes to their online store.

 So, how has this technology impacted ecommerce? Let’s dive in.

AI enables e-commerce platforms to collect and analyze vast amounts of customer data. This means you can better understand your users and create highly personalized shopping experiences they will be more likely to engage with.

Some of the data AI can get a hold of includes customer preferences, purchase history, browsing behavior, and demographic data. The sooner you dig into the analytics, the sooner you can offer tailored product recommendations and personalized marketing campaigns.

computer displaying ecommerce online store

Chatbots and virtual assistants that are powered by AI can enhance customer service on your e-commerce site. These bots can handle customer inquiries, provide real-time assistance, offer product recommendations, process orders and more.

Unlike small businesses who can’t afford to pay employees to work around the clock, AI-powered chat tools operate 24/7, improving customer engagement and reducing response times.

  Here’s a list of 18 AI-powered Chatbots from Hubspot.

AI enables visual search capabilities, allowing users to find products by uploading images or using the cameras on their mobile devices. Certain AI technologies can analyze the images and identify the products, or display similar items, making it easier for customers to find what they are looking for.

With strong product photography, accurate image-alt text and metadata, and up-to-date storefronts, AI can help your ecommerce business show up more often.

New AI technologies can analyze historical data, predict demand, and automate inventory management, creating a more effective system for your online store.

According to Ware2Go (A UPS company), “There are three main applications of AI in the supply chain that can benefit businesses of all sizes…. demand forecasting, network optimization, and on-time delivery predictions”.

This helps your ecommerce businesses reduce costs, minimize stockouts, and improve overall efficiency, allowing you to focus on getting your products out the door faster!

Certain AI technologies on the market have the capability to detect fraudulent activities, such as payment fraud and identity theft, by analyzing patterns and anomalies in transaction data.

This enhances security measures and protects both ecommerce businesses and customers from potential threats. By utilizing these technologies you can provide a better experience for your customers and create loyalty, while also gaining the trust of potential customers.

AI algorithms can help your ecommerce business stay competitive by analyzing market trends, competitor prices, and customer behavior to optimize your pricing strategies. This allows your e-commerce business to offer competitive prices, maximize revenue, and improve profitability!

ecommerce analytics

AI technology can analyze your customer data and their browsing behavior to provide highly accurate and relevant product recommendations. By better understanding your customer’s patterns of behavior, you can create a more personalized shopping experience.

You can offer enhanced cross-selling and upselling opportunities, with products you know your customer will be more likely to purchase, leading to higher customer satisfaction and increased sales.

AI-powered predictive analytics can analyze customer data, market trends, and historical patterns to help you make accurate predictions about your customer’s behavior, product demand, and sales.

This allows ecommerce businesses to make informed decisions, optimize marketing campaigns, and improve overall performance.

Learning and better understanding this new technology will allow you to use it to your advantage when it comes to selling your products or marketing your business. While it still may seem like a scary concept, think of it like a tool that can unlock more opportunities for you. And, don’t forget, marketing agencies – like us – are still learning something new about AI every day!


If you’re thinking “wait, I don’t think I’m even using my online story to its full potential,” let’s talk.

Ecommerce platforms provide your business with an additional revenue stream and online channel for you to grow your business. We can help set you up for success. Contact our team today to get started.