When it comes to the online shopping experience AI isn't far away. Ecommerce is changing because of it, but how? How are online businesses using it, and are we as consumers benefiting from it?  Let's explore 10 areas AI is influencing (and can influence) the ecommerce experience: 

1. Predictive marketing 

2. Predictive analytics 

3. Intelligent search 

4. Facial recognition 

5. Natural Language Processing (NLP) 

6. Hyper personalisation 

7. Chatbots and virtual assistants 

8. Internet of Things (IoT) 

9. Assortment intelligence 

10. Wearables 

1. Predictive marketing 

Lead generation is fundamental to all online retailers.  There are loads of tools out there that help businesses with this. Predictive marketing for instance, uses AI to help ecommerce websites generate leads. 

 AI predictive marketing solutions integrate with sales and CRM systems to give sales teams better opportunities to win new business.  

 Machine learning algorithms can identify high quality prospects and pass them onto sales teams to follow up and start the conversion process.  One company using predictive marketing is Getty images. Without it, Getty wouldn't be able to process the volumes of leads it receives. 

2. Predictive analytics 

Predictive analytics uses AI to make predictions on the likelihood of future outcomes. Although it's been around for a while, the technology is more in its comfort zone because of: 

• More data

• Faster computers

• Better software

• Greater competition  

Ecommerce businesses use predictive analytics to not only gain that competitive edge, but to also solve problems, drive sales and create better buying experiences. 

3. Intelligent search 

Intelligent, or customer centric search, uses machine learning to surface better search results for online shoppers. The AI is smart enough to tag and organise content. It can also label the features of every image or video.  

One example of this in the real world is the way Pinterest uses it. When users pin a photo, Pinterest uses intelligent image recognition to show similar items. This gives the user experience a massive boost as users are guided through their journey with relevant ads designed to drive conversions. 

4. Facial recognition 

Biometric recognition has been around for some years. We all unlock our mobiles with either fingerprint or facial recognition.  AI technology, though, has moved biometrics further along the ecommerce path.   

Some businesses are using facial recognition to monitor and capture dwell time.  That's the time somebody spends on a webpage.  This information is being used by marketing teams to retarget people who’ve been looking at particular products online for long periods.   

Let’s assume somebody spends a particularly longer time than usual looking at a specific product or service.  Clever AI algorithms would surface this data which can then be used for omnichannel retargeting strategies.  

5. Natural Language Processing (NLP) 

NLP is the interaction between human language and computers. It's a daily thing.  

Take Siri and Alexa. When we ask a question, our queries are stored. If the AI infrastructure is in place, queries are fed into an integrated CRM system that identifies new opportunities for sales teams.  

Another example of this being used is The North Face. By using IBM's Watson, online shoppers can find their perfect jackets.  This is achieved through voice input AI technology asking customers key questions like “where and when will you be using your jacket?”  

The customers' answers prompts Watson to trawl through hundreds of products, while using real world data like weather conditions to find perfect matches in real-time.  

6. Hyper personalisation 

Personalisation isn't new.  But since the advancement of AI technology 'hyper personalisation' is set to become part of our shopping experience. In fact it's already being used at Covergirl’s flagship store, which uses AI to guide customers through the shop.  

AI engines like Zeta Global, help businesses analyse how people are interacting online. Whether mobile, website or email, the AI engine is constantly monitoring behaviour and channels to create a 360 degree customer view.  This helps businesses take a unified approach to delivering the best experience on all channels. 

And then there's the Metaverse.  A virtual place where our shopping experiences use AI to create the ultimate shopping trip. Some companies have even launched non-fungible tokens (NFTs) that can be used as currency when shopping in the Metaverse. 

7. Chatbots and virtual assistants 

We've all used them. They’re a great way of humanising the ecommerce experience. As too are virtual shopping assistants. Also known as 'conversational commerce', chatbots and virtual assistants use sophisticated visual, vocal, written and predictive AI capabilities to capture attention and connect with customers.  

There are even some businesses that have gone as far as introducing an autonomous robot to guide customers around the store. 

8. Internet of Things (IoT) 

IoT has made devices smart. It's moved from our mobile phones to our household appliances.  

Amazon’s Alexa has teamed up with LG’s Smart InstaView refrigerators to give us the ultimate smart device. These AI fridges have huge touch screens built into their doors, a virtual assistant and webOS software.   

This very, very smart fridge will not only help with your shopping and order milk for you, it also gives you news, travel and weather updates.  It won't be long before every household has these types of AI driven white goods. 

9. Assortment intelligence 

As customers we've become so demanding and exacting that businesses need to adapt a lot quicker to win our business.  One thing that businesses need to keep on top of is pricing strategies.  

Multichannel online retailers must try and have flexible pricing policies to win and retain business. One AI tool they can use is Assortment Intelligence. This intelligent AI software provides 24/7 visibility into competitors' inventories and pricing.  

Assortment Intelligence gives online businesses the ability to monitor competing product prices, how they're segmented and any product overlaps. This valuable data gives businesses incredible insights on how they can quickly adjust pricing strategies to gain that competitive edge. 

10. Wearables 

Although wearable tech had been around in the form of Fitbit, the Apple Watch took it to another level.  Today, how many people do you see wearing a smartwatch?  You're probably one of them.   

With AI technology as it is, wearables collect data beyond just what ecommerce platforms can do. The more advanced ones, like the Apple Watch, can see what products you viewed, define your taste, and instantly make personalised recommendations.  What's more, you can even make the purchase directly from your smartwatch.  

Take AmazonGo. It's moving into a cashless ecosystem whereby you can use your mobile device and wearable to make purchases in a checkout-less retail outlet.  

Working with Codehouse 

Artificial Intelligence is pushing the ecommerce boundaries.  We've only covered 10 areas of how AI is changing the ecommerce experience. But there are more, like using AI bots to filter those fake reviews that we all fall for and shopping from your electric vehicle. 

As we move through the 21st century AI will envelope our everyday lives to the point where our shopping experience will be defined by us, and for us.  

Codehouse have been working with technology for over 15 years. Our experts have delivered multiple award winning, experience driven websites to our customers. 

If you have an ecommerce project our experts are available to get you started.  Get in touch to find out more.