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The AI Frontier: How AI Is Transforming ecommerce Beyond Recognition?

For some years, most industries are considering how to incorporate AI into their scheme of things to facilitate intelligent automation. Artificial intelligence (AI) stands to transform every industry. Ecommerce is on the forefront among the top beneficiaries of all the new technologies and thus cannot be different with AI.

Top ecommerce stores have already made huge investment in utilizing the AI based capabilities for their businesses. According to reports, the retail and ecommerce industry as a whole is set to experience a compound annual growth rate (CAGR) of 42.8% within the time span from 2019 to 2025. This creates a naturally conducive environment for investment in new technologies to grow and expand.

Since consumers these days consider convenience and flexibility across multiple channels a key aspect of a great shopping experience, the role of AI is closely entangled with the future of ecommerce. AI is embraced by retailers for personalizing shopping experience and delivering a smoother customer journey. Question is, how the ecommerce merchants are going to capitalize on AI capabilities. Let’s get into a brief discussion.

Successful AI Applications In ecommerce

Intelligent AI powered Chatbots are already automating query handling, response management, customer engagement and sales lead generation. As per the Gartner prediction, people will have more conversations with chatbots than their family in the years to come.

AI-powered bots offer ecommerce merchants scalable solutions that can work all through the day. The latest language processing (NLP) along with intelligent algorithms are helping people to find the right product choices or raise issues or complaints.

On other fronts, AI is helping business brands to develop data driven relationships with the customers through analyzing large volumes of data. With the consumer visits on a website, the system can track a trail of digital data that earlier remains mostly untapped. On the other hand, AI helps retailers to gain actionable insights from trends, buying patterns, customer browsing patterns and marketing leads. These insights help them to take improved and data driven business decisions.

Since now with the digital era it is more required by retailers to contextualize user journey, the AI helps us increasingly play a crucial role. Now AI offers help in leveraging cookie data so that customers can be addressed with really tailored offerings. The natural language processing and by using image, video and audio recognition, now retailers can really know abd address what the customers actually want.

Challenges For Driving Innovation Through AI

You can hire magneto certified developer or company and integrate an AI chatbot. But that’s not enough. AI gets its key resources through data. AI basically draws intelligence from the huge quantities of data possessed by organizations. On the other hand, drawing insights from this huge pool of data is not easy, and this is why it is important for organizations to facilitate the infrastructure and necessary arrangements to implement analytics.

The key issue here is that the data is frequently drawn from very fragmented and slow-paced sources, making accessibility to data a big challenge. On the other hand intelligent analytics needs coherent data integration. To make things more challenging, data screening and incorporating the data into a manual process can consume a lot of resources.

Moreover, a lot of data required by AI involves short-time insights. There are data driven insights the value of which decreases over time so these insights need to be acted upon quickly. So, any time consuming process to extract data and draw data driven insights will have less value.

On the other hand, data preparation is a complicated process, particularly for large organizations that have their business data spread across layers and multitude of sources. So, for AI to deliver expected results and to drive innovation, all these sources and facets need to be aligned. In this respect, data quality also remains a key consideration for ecommerce merchants to gain relevant insights.

What Is The Future of AI for ecommerce?

AI based apps in ecommerce are continuing to increase and according to latest predictions, by 2025 the net value of AI based e-commerce apps are going to touch $27 billion. As the consumer demands are steadily increasing, there can be hardly any doubt that the customer experience in online retail stores will be benefited mist by AI.

Ecommerce and retail brands are already jumping on the AI bandwagon as their customers have become more familiar with latest technologies and data driven personalization became a key aspect of the shopping experience. Naturally, the early adopters of AI will have an edge in this competition.


To make the best of AI promises in ecommerce, businesses need to concentrate on preparing their data infrastructure. In the future, only businesses with state of the art data infrastructure will be able to utilize AI to the best of their abilities.



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