Artificial intelligence technology lets computers and other electronic devices work with the same potential as humans. Artificial intelligence can also focus on performing various tasks such as management of a huge amount of data. Big data is the right example of this as it is performing great in the e-commerce industry because of the involvement of artificial intelligence. 

For a business owner, it is essential to provide possible updates and changes regularly. This made various businesses bend towards adding artificial intelligence technology in their e-commerce industry after noticing the best results. Around 83% of the industry uses this technology to get good future results. You can also integrate your business with AI to enhance your e-commerce start-up or business firm. But, is it a difficult process to incorporate or not? 

The answer is a big no. So, to understand the concept better and learn about e-commerce website development more efficiently, let us look at all the essential information gathered by our e-commerce web developers to find out the importance of artificial intelligence to the business. 

Statistics of the Market 

  • It has been found that by 2032, the e-commerce artificial intelligence market will reach around $45.72 billion and will grow at a CAGR of 18.45% from 2023.
  • Almost 35% of the companies were already using AI for their business and 42% are still exploring the technology. 
  • The retail business market will reach around USD 49.09 billion and grow at a CAGR of 38.05% till 2028.

Changes in the E-commerce Industry Due to Artificial Intelligence


  • Artificial intelligence usage in the e-commerce industry is letting organizations use the three essential techniques- predict, sense, and automate. It helps in improving the experience of the users and increases the brand reputation. 
  • AI can also solve various real-world issues that are faced by e-commerce business stores by integrating some of the best features in your application such as low-level support, loyalty discounts, and automated recommendations for products and services. 
  • Artificial intelligence assists manufacturers, startups, and retailers to work in a way that sets a new example in the industry. Various implications show how business owners sell their products and how customers buy them. 

How to Use AI in E-commerce to Improve User Experience?

How to Use AI in E-commerce to Improve User Experience

Artificial intelligence is changing the way people use technology every day. Using AI in the e-commerce industry makes things easy for users to get things done whenever they want without any hassle. Here are some top features of AI. That shows how it changes the customer experience.

1. Chatbots 

This is one of the most popular AI tools that let customers have realtime experience to assist with their issues and queries. The tool gives responses to the users in a customized form, provides them with the ideal products, and helps them to find the best items they are searching for. 

2. Product Recommendations 

The second important thing that AI can do is analyze the purchase and browsing history and start giving suggestions to the customers. All this helps in improving the customer experience as they are very fond of seeing things, they are interested in.

3. Visual Search 

Artificial intelligence also enables the camera’s feature in the search option of the users. The user can take a reference picture with them and upload it on the app to get the desired product-related search with a single click. This provides exact and accurate products to the customers that they were looking for. 

4. Management of the Inventory 

Artificial intelligence is good at detecting product requirements when the demand for an inevitable item increases. Using AI, you can also optimize your inventory according to your needs. This helps the customer to get the product quickly and easily without any concerns. Moreover, we can say that AI can effectively manage the inventory of an organization. 

Benefits of AI for E-commerce Business Stores

Benefits of AI for E-commerce Business Stores 

Artificial intelligence provides multiple benefits to an e-commerce business store. Some of them are as follows- 

1. E-commerce Automation 

Online shops should be available all day on several channels to grow and earn desired profits. Therefore, at this point, the operational capital and energy of a business can be easily saved using e-commerce automated support. Artificial intelligence helps the business to operate multiple operations and organize various tasks by simplifying the backend and front-end processes. Using AI, a business can handle everything visible, from adding products on different platforms to focusing on business transactions, from providing discounts to coordinating with sales, and many more.

2. Smart Search or Searchandizing

Searchandizing is made up of two words, merchandising, and search that combine online search practices with merchandising tactics. It is a process that merges traditional product search methods with modern features such as product recommendation, recent search, autocomplete, and faceted search.

This method let the e-commerce business leverage customer behavior and develop customized product search experiences. All this makes businesses recognize the benefits of integrating these creative search tools into their business platforms. 

3. Customer Retargeting 

Retargeting, also known as remarketing, is the process of reminding your customers about the brand and products. The objective of this approach is to build user engagement with the customers who have previously purchased products from your e-commerce platform. Using AI, business owners can know the behavior of every user and use it to bring them back to their online store. 

Push notifications are a great customer retargeting strategy as it offers one-on-one communication and reduces the risk of customers getting annoyed. By utilizing AI, you can place your brand at the forefront and increase the chances of customers returning to your store for more product purchases. 

4. Effective Sales Process 

There are several ways to involve artificial intelligence in your e-commerce store to boost sales and one of the methods is by integrating AI into your business’s CRM system. Using AI, businesses can optimize their problem-solving processes, attract customers, and build appealing CTA messages.

AI virtual assistants like Alexa offer natural language, and voice recognition capabilities to enable CRM systems and respond to customer issues and quickly address them. Some of the AI-driven CRM systems also handle these tasks simultaneously, like saving business energy and time, while also focusing on increasing customer satisfaction for good conversion rates.

Challenges of AI in E-commerce Business 

Challenges of AI in E-commerce Business

With benefits, there are some challenges or limitations of AI that have to be faced by e-commerce businesses which are as follows- 

1. Quality of the Data and Privacy 

Artificial intelligence algorithms require High-quality data to offer accurate insights and predictions. The protection of customer data is essential to be taken care of. But, with AI it is a challenge to take care of the individual’s data as there is a need for a perfect team.

2. Legal Considerations 

The AI application in e-commerce business has some ethical and legal issues such as how the data of the customer will be collected and used. It is essential to ensure compliance and also protect the customer’s privacy.

3. Lack of Transparency 

It is challenging to understand some of the AI algorithms that make accountability difficult. For e-commerce business stores, it is essential to ensure accountability and transparency in artificial intelligence usage. 

4. Cost 

The implementation of artificial intelligence technology in business can cost you a lot. This results in problems for small to medium enterprises to afford AI services for their e-commerce business store. 

Applications of Artificial Intelligence in the E-commerce Industry

The applications of AI are categorized between two- customers and business. So, without any thought, let us look at them in detail. 

For Customers 

  •  Voice Recognition and Image Search 

When image search or voice recognition is added to an application, it becomes easy for the customers to find the desired product they need by just clicking or putting the reference picture or searching vocally using the app search bar. It is also helpful for users who are not familiar with the new technology usage.

  • Virtual and Augmented Reality

An application uses VR and AR technologies to make the customer feel the same as a brick-and-mortar store. Both the technology integration helps in visualizing things and judging better than seeing them in pictures.

  • Product Recommendations 

Artificial intelligence technology lets users find the desired products they are interested in using the previous activities. This makes the search easy and sorted and is done according to the customer’s preference.

For Business Owners

  • Sales Forecasting 

Using artificial intelligence, business owners can easily predict and generate forecasting of new marketing trends and sales. With the help of data analysis, studying previous and upcoming trends, and looking at historical data, it is possible to boost business operations.

  • Privacy 

There are thousands of transactions done online in the e-commerce and industry daily. This brings a lot of cyber criminals and can also result in the leak of personal data of the users. All of this makes your business hurt its reputation and go down. 

Therefore, AI is the best way to ensure the security of your e-commerce store in such cases. The website can easily detect fake activities and prevent data breaches while using AI technology. It also allows the website and app to ensure safe online payment by the customer. 

  • After Sales Support 

With artificial intelligence, after-sales service for customers has been started, rather than providing them with a smooth process to buy and sell products. Therefore, after the purchase of the product, customers can sit back and relax as the products can get easily delivered to their doorstep. 

It is also easy to request a return or replacement or ask for directives to use the product. 

If the business is concerned more about the needs of buyers, then they will see more loyalty from the customers and eventually increases the business sales. 

Use Cases of Artificial Intelligence in the E-commerce Business 

Use Cases of Artificial Intelligence in the E-commerce Business

Artificial intelligence is used in the e-commerce industry to make everything easy and comfortable for customers. It is making every challenging and impossible thing better for the user to increase their engagement. Here we have added some of the basic use cases of AI in the e-commerce business.

1. Chatbots 

Chatbots are AI technology that is used by users to talk to virtual agents. The technology uses natural language, machine learning, and vast data to make interaction with humans easy by recognizing speech and translating it into other languages.

2. Management of the Inventory 

Inventory management is a time taking task as well as a responsible job. It includes buying, selling, consuming, and storing products. Using AI, this can be done in minutes without the need for any physical work. The technology helps to protect the scenario and recommend solutions to the users. You should not misinterpret it as a machine taking over humans as it only helps in managing things easily using automated systems.  

3. Price Optimization 

This is done in two ways using artificial intelligence. First is predicting the right price for the customers and second is getting the cost of the product. Getting the product’s price can help you know the highest and lowest price points according to the users. This is done to let AI alter the product’s worth according to the customer’s needs. The low price of the product can attract first-time website visitors and a lower price can entice price-sensitive customers.

4. E-mail Marketing

AI-integrated marketing technology uses artificial intelligence to customize and target various email campaigns according to customer preferences and behavior. This provides a high engagement of the users and conversion rates. It also allows various customer segments to list down analytics to optimize performance. 

5. Internet of Things 

AI-powered IoT technology collects and analyzes data based on customer preferences which can further be used by AI algorithms to target various e-commerce experiences. This involves reminders to order products again or optimizing the inventory and supply chain. 

How Brands are Using Artificial Intelligence to Boost Their Business Sales? 

The E-commerce industry has been fully integrated by AI technology offering automated and personalized shopping services to customers. And, all this has been recognized by some of the popular global brands such as 

How Brands are Using Artificial Intelligence to Boost Their Business Sales

Indglobal Digital Private Limited: The Most Trusted E-commerce Web Development Company in Bangalore .

Now that you know everything about artificial intelligence and its importance in the e-commerce industry, you will now be searching for a great e-commerce website design company in Bangalore that will help you integrate AI into your online business store. We, at Indglobal Digital Private Limited, have the best e-commerce developers who turn your ideas into reality and make your business a huge success. 

Also, recognized as the top e-commerce web development company in India, we offer services to our customers 24*7 and let them contact us for further assistance anytime to get satisfactory results. Apart from this, you can also get access to some of our benefits such as 

  • User-defined design 
  • Top-notch web development 
  • An expert team of e-commerce web developers 
  • After e-commerce website development service 
  • Pocket-friendly development 

Wrapping Up 

Artificial intelligence is becoming essential significantly. It helps business owners to personalize their shopping experience, automate business processes, and optimize pricing methods. AI-integrated virtual assistants and chatbots also enhance the user experience and provide 24*7 customer support. Also, it improves the demand and supply chain management of the organization, reduces business operational costs, and enables maintenance. Therefore, it can be said that artificial intelligence offers multiple benefits to the e-commerce business and brings the desired success. 

So, as the most popular e-commerce web development company in Bangalore, we can say that AI is a powerful tool to optimize business functions, increase revenue, and enhance the experience of the users. And, with the advancement in technology, organizations have to stay updated with the new and latest AI applications to remain ahead of the competitors in the market. 

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