Artificial Intelligence in E-commerce: Industry Use Cases

According to Accenture, “AI has the potential to increase the profitability rates by an average of 38 percentage points, leading to an additional gross value-added (GVA) increase of US$14 trillion by 2035.”

When you hear “AI,” it’s simple to tune out. The same is true with machine learning, NLP and customization. Today, so many E-commerce companies can use artificial intelligence for future-oriented experiences that we have started entirely ignoring the terms.

However, the best idea may not be to overlook artificial intelligence in E-commerce.

Although many technology companies use AI in a black box to attract unknowing potential users, your performance in the next years might be greatly affected by the decision to integrate real artificial intelligence algorithms into your e-commerce website.

Here are some AI use-cases that help you understand why AI is the key ingredient in the secret sauce of E-commerce development. But here’s what you should know before that:

AI Is Bringing Change to the E-commerce Industry:

Artificial intelligence is not only a novel “cool factor” technology. The use of AI can affect all of your enterprise’s functions.

It helps you to understand the components of artificial intelligence that how it might affect your business.

AI is broadly defined, including data mining, the processing of natural language processing and machine learning.

  • Data mining means the collection of both historical and current data for predictive information.

  • Natural language processing focuses on relationships between human-computer and how computers perceive human language.

  • Machine learning is concerned with an algorithm collection to use expertise or give examples to solve a problem. “To get a deeper understanding of the data, deep learning includes layout algorithms.”

AI technology has grown to a strong instrument for boosting sales and optimizing operations in the last several years. Even many small e-commerce companies use some form of AI technology.

Benefits of AI in E-commerce:

AI can analyze large amounts of data and learn from the data input to provide a better result, which is the major benefit of AI for E-commerce businesses. By using AI solutions, businesses understand their customers better, provide more relevant products, choose for their business offers the best time and prices, obtain accurate and reliable analytic data.

AI promises to make significant advances in e-commerce operations:

  • Service customization 
  • Product enhancement and service improvement 
  • Enhanced e-commerce platform
  • Advancement of customer service through customer orientation
  • Enhanced sales and marketing results
  • Better management of the supply chain

AI Use Cases in E-commerce:

There are many use-cases in E-commerce for AI, and you undoubtedly know many of them; you may not realize that the technology on which they are based is, in fact, AI-related. Here are six of the most common: 

1. Provide Personalized Product Recommendations to Customers

Using artificial intelligence, customized product suggestions are offered based on prior users’ behavior and appearance.

Websites suggest items that you may enjoy using machine learning to assess your purchasing history based on prior purchases. However, in the long term, the participation of data scientists in daily applications in E-commerce companies will require less and less machine learning.

2. Better Pricing Optimization

Dynamic pricing that supports AI is a technique to change your product price based on supply and demand. Today’s tools can dynamically calculate the minimum discount necessary to sell when and how to discount with access to the right data.

3. Enhanced and Effective Customer Service

You may provide higher-touch customer support with virtual assistants and chatbot technology. While these bots are not entirely autonomous, they can simplify basic transactions so that live support agencies can concentrate on complicated questions.

Virtual agents also have the advantage of being available 24/7 so that low-level issues and issues may be resolved at any time without waiting.

4. Accurate Customer Segmentation

Access to additional data and processing power from business and customer sources enables e-commerce operators to understand their clients better and identify new trends.

“AI systems can swiftly investigate very complicated and diverse options for consumer engagement and constantly enhance their performance as further information becomes available, according to insight from Accenture. This allows marketers to adjust settings, optimize and accuracy of the AI.”

5. Smart Logistics

Smart logistics and intelligent logistics are all about leveraging sensors, RFID tags, and real-time information to manage inventories and better predict demand. Machine learning systems get wiser over time to make better forecasts for their logistics and supply chain operations.

6. Sales and Demand Forecasting Based Accurate Analytics

You will want to prepare your inventory of both historical and real-time data, particularly in a world during and after COVID-19. This can help you with artificial intelligence. Recent McKinsey research argues that investment in real-time customer analytics is important in monitoring and reacting to consumer demand fluctuations that may be used to optimize price or targeted marketing.


This blog mentions that AI plays an important role in developing innovative solutions and customer experiences in e-commerce. Some of the  leading use cases of AI in E-commerce include personalized shopping, product suggestions, and inventory management.

As an online retailer, consider how you might use an artificial intelligence working model for your enterprise?

Dash Technologies offers some of the best E-commerce solutions. In addition, we offer custom solutions to customers all across the globe. As an artificial intelligence solution provider in the USA, we are here for you if you require an AI e-commerce platform.

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