Technology is developing so rapidly that keeping up can sometimes be difficult. One of the most important areas of progress is artificial intelligence, which already supports online sales, customer service, offer personalization, product search and content creation. Some see enormous potential in AI, while others are concerned about its impact on existing jobs. In our view, it is a tool that, when used effectively, can streamline processes, improve customer experiences and increase the performance of e-commerce operations. In this article, we present the most important applications of AI in online stores and explain how to choose solutions that match your business needs.
In this article, you will learn:
- what artificial intelligence is and how it works in e-commerce,
- which areas of an online store can benefit from AI,
- how AI supports search, personalization and customer service,
- what data is needed for an effective implementation,
- how to measure the business impact of artificial intelligence.
What is AI?
Artificial intelligence (AI) is a type of intelligence learned by machines based on patterns of human behavior. This is also where the term machine learning came from. This is because AI uses neural networks.
In artificial intelligence, neural networks are mathematical models that mimic the workings of the human brain. They are made up of interconnected neurons and learn from data. They enable machines to recognize patterns and relationships in data. Neural networks have various architectures and are used in inventory management, image recognition, natural language analysis, speech processing, and many other fields. They are capable of automatic machine learning and adaptation, which makes them a powerful tool in AI.
AI allows employees to focus on more engaging tasks, like those requiring creative thinking. It is, therefore, an effective way to optimize working time and achieve ever higher job satisfaction. Artificial intelligence can be used to enhance customer service, study customer behavior, boost customer experience and improve product recommendations. The possibilities are indeed numerous.
While some fear, that AI poses a threat to many professions, it is a topic worth investigating with curiosity. This high-tech tool can streamline your daily activities and help you operate much more dynamically. This also goes for your online shop.
Below you will find a ranking of what we believe are the best AI tools. By using artificial intelligence, you have the opportunity to gain a significant competitive edge. See for yourself!
eCommerce and artificial intelligence
Constant changes and the need to adapt to them swiftly are the characteristics linking eCommerce companies with modern technology. Artificial intelligence is a great way to push the eCommerce industry forward.
Changing trends, customer interactions, and user behavior in the eCommerce industry is where the use of AI will be helpful the most. It will suggest how to act in response to the actual needs of your customers.
Artificial intelligence has been present in online sales for many eCommerce retailers for a long time now, but its role is rapidly shifting and expanding. The choice of a specific AI use case should be driven by the problem the organization wants to solve. Product recommendations, chatbots, automated content creation and demand forecasting each require different data, integrations and performance metrics.
The most common AI applications in e-commerce differ in terms of the data they require, how they need to be integrated, and the metrics used to evaluate their results.
| AI application | What is required | How to measure success |
|---|---|---|
| Product recommendations and search | Well-structured product data and user behavior data | Conversion rate, average order value, recommendation click-through rate |
| Chatbots and customer service | An up-to-date knowledge base, product data, and clear escalation rules | Response time, number of resolved enquiries, escalation rate |
| Content generation | PIM data, brand guidelines, and a content review process | Publishing time, number of errors, content production cost |
| Marketing and personalization | Transactional and behavioral data, together with properly managed customer consent | Campaign conversion rate, ROAS, customer engagement |
| Demand forecasting | Sales history, inventory data, and seasonality | Forecast accuracy, product availability, number of stockouts |
Each AI use case requires a different combination of data, integrations, and success metrics. That is why it is best to begin with a single, clearly defined use case before expanding AI across other areas of the business.
Our TOP 7 ideas for using AI in eCommerce businesses
Artificial intelligence will drive a paradigm shift in the ways we do business – similar to the invention of the internet but with even greater impact. For us and our merchants, the opportunities are exhilarating. Shopware's ability to adapt and meet the moment is rooted in our open source DNA, also reflected in our AI-focused product strategy. The tools we're creating will touch the entire customer journey, unlocking a whole new level of efficiency. We expect to see major improvements in our merchants' revenue and operating costs. - Stefan Hamann, Shopware
Here's a look at the AI toolkit and technology solutions that are useful in a modern eCommerce business. If you are creating an eCommerce website or other online business, you will surely find something that will help you in implementing an efficient sales process.
1. Chatbots
AI assistants have long been present in eCommerce businesses. What is important, however, is that such solutions are becoming more and more intuitive and thus more attractive to customers. Especially when natural language processing is being constantly improved.
Chatbots help address basic customer queries without the need to engage staff in the process, who can in turn devote their time to other tasks. Natural language generation makes them more and more pleasant to cooperate with. Customer service for online shops therefore often operates around the clock, thanks to which more people use the service even on holidays or weekends.
The presence of virtual assistants in online shopping is slowly becoming the norm. Chatbots tend to the comfort of users at the basic service level. If they run out of resources to provide an answer, they will redirect the customer to the appropriate consultant or subpage where the necessary information can be found. It boosts customer experience.
2. AI and Augmented Reality in product presentation
AR (Augmented Reality) as opposed to VR (Virtual Reality) does not mean an entirely virtual reality, but a combination of the surrounding world with digitally created images.
Augmenting reality with digital images allows us to better visualise individual products. AR can be helpful, for example, when customers want to see how purchased items look in their everyday space. Until recently, online retailers couldn't help with it. Without this kind of AI technology, eCommerce customers had to use their imagination.
Now, thanks to AR, personalising your offer is easy. Your customers no longer have to wonder how the new sofa will look in their living room. They can simply see it. We don't need to mention how big an impact it makes on customer satisfaction, right?
AR is used, for example, at Google, where the user can see what a selected animal would look like in a room at a life-size. This type of solution is also appearing in the furniture industry so that consumers can check how given furniture fits into their chosen rooms.
3. Types of smart search
Modern forms of search encourage users to enjoy online shopping more often. Advanced technology allows them to focus on selecting the products they want without having to bother with complicated search engines or tedious page-by-page browsing. Searching for products on a computer may have put off many potential customers, especially the older ones. However, thanks to new technologies, it has ceased to be difficult and has become intuitive. Yet another way to boost customer satisfaction.
Visual search – searching by image
Visual search is a function whereby your consumers can search for goods using images. If a product appears on an inspirational website or some other random place, users can easily find it through the image without wasting extra time. This is one of Google's favourite new search features. It allows you to find things that we do not know the names of, such as specific screws or flowers.
Voice search – searching with a voice assistant
Voice search will be helpful not only when you want to make your online experience more convenient and faster. It's also a great option that impacts the accessibility of your services for those who struggle with various types of constraints. That's an entirely new customer experience. Earlier, such people were beyond your reach. Voice search can therefore boost sales.
Some businesses operating in modern eCommerce offer voice assistant services that allow the user to successfully go through the entire shopping process, starting from product selection to the finalisation of the transaction.
4. Customer service automation
Chatbots are only one application of AI in customer service. Artificial intelligence can also classify enquiries, prepare suggested responses, summarize previous interactions, and route cases to the appropriate specialists.
The system can answer questions about products, availability, order status, delivery, or returns. In more complex cases, it should transfer the conversation to a customer service agent together with the relevant context, so the customer does not have to explain the entire situation again.
An effective implementation requires an up-to-date knowledge base, access to the right data, and clearly defined escalation rules. This allows AI to reduce response times and ease the team’s workload while keeping a human involved wherever an individual decision is required.
5. Dynamic remarketing
Dynamic remarketing is a marketing strategy that involves the use of customer data on the behavior of website visitors to personalise offers and ads and re-target them with relevant offers. This is an advanced form of remarketing that allows ads to be displayed based on specific products or services that the user has previously viewed or expressed interest in.
The main feature of dynamic remarketing is the ability to automatically generate advertising content based on customer data related to the product the visitor has viewed on the website.
Using dynamic remarketing has significant advantages. Personalized ads can capture user attention more effectively, and increase their engagement and propensity to make purchases again. Dynamic ads tailored to the individual preferences and needs of potential customers may lead to their conversion and increase customer loyalty and the effectiveness of marketing campaigns.
Based on audience data, the algorithm will optimize purchase paths and suggest products to customers in a way that matches their preferences. This way, when a user visits your online shop yet again, they will immediately receive personalized product recommendations that are in line with what they were previously looking for. That changes the online shopping world.
However, don't forget to manage your data properly and protect your users' privacy. The collection of user behavior data should be carried out in accordance with applicable privacy laws and standards, such as the Personal Data Protection Regulation (GDPR) or the privacy policies of advertising platforms.
6. Using AI to create content
Among AI tools for eCommerce, you will find plenty of editing software to help you write engaging and effective sales content. Artificial intelligence can prepare initial drafts of product descriptions, translations, category content, advertising materials, and answers to frequently asked questions. The quality of these materials depends on the source data, brand guidelines, and the review process applied before publication.
Based on the operation of artificial intelligence, the editors also have built-in add-ons allowing you to:
- verify the correctness of the text,
- add the necessary multimedia,
- optimize content for SEO,
- quickly create product descriptions, for example, Shopware's AI assistant.
With such a solution, you can make better use of the time allotted to create content for your eCommerce business more efficiently. AI will also help you do research on a given topic and suggest interesting options to consider, as well as titbits you can include in the text. For online stores with extensive product catalogues, integrating AI tools with a PIM (Product Information Management) system is particularly important. This enables content to be generated using up-to-date product attributes, approved descriptions, and consistent product data. Human review remains essential to verify accuracy, brand tone of voice, legal compliance, and the overall quality of the final content.
7. Personalization
Personalization is one of the key concepts when it comes to User Experience. Every user wants to receive special treatment when shopping. Artificial intelligence is helping to provide audiences with this kind of experience.
Consumer behavior data collected with AI is the path to both a higher quality customer experience and better sales results for your online shop. It is therefore worth taking advantage of technological innovations when growing your online business.
Artificial intelligence introduces the concept of hyper-personalization, i.e. real-time customization of online shops. It is worth using this tool by matching audiences to groups based on their behavior, and not, for example, demographic data. The effectiveness of personalization depends on the quality of the data and how it is used. Before implementation, it is worth defining which information will be analyzed, how recommendations will be explained to customers, and which decisions will require additional oversight. This makes it possible to develop personalization in line with sales objectives, user privacy, and established data governance principles.
Insight from Tandemite implementations
“AI delivers the greatest value when it is assigned a specific task. A chatbot requires one type of data, product recommendations another, and automated content creation yet another. That is why every implementation should begin with a business objective and a clear way to measure the outcome – only then should the technology be selected.” - Maciej Pałubicki, CEO of Tandemite
The final outcome also depends on the quality of product data, integration with PIM, ERP, or CMS systems, security, and the way people are involved in the process. For this reason, it is best to begin with one clearly defined use case and expand into additional AI capabilities based on the results achieved.
Will artificial intelligence one day replace humans?
Artificial intelligence is the force that is poised to steer the future of retail to entirely new destinations. The key to success is the ability to extract meaning from big data to solve problems and increase productivity. - Azadeh Yazdan, Director of Business Development, AI Products Group
At present, artificial intelligence is a tool used by humans in various areas of life. It is a cutting-edge technology designed specifically to make humans' daily lives easier. Artificial intelligence is used by humans – not the other way around.
Tools using AI in eCommerce have been functioning effectively for years, especially in the form of chatbots adapted for customer service. As machines take over some work duties, employees spend more time doing tasks that bring them satisfaction.
Artificial intelligence should not be feared, precisely because an algorithm can only be as advanced as its creators will allow. The potential of this technology is therefore worth harnessing in eCommerce, creating an unprecedented quality of user experience.
Conclusion
Use artificial intelligence in your e-commerce business where it can genuinely improve sales, customer service, and the day-to-day work of your team. AI can support many areas – from product search and recommendations to personalization, content creation, marketing, and the automation of repetitive processes.
With AI, you can tailor your offer and customer journeys more closely to individual needs, including in real time. More relevant product recommendations, faster responses to customer enquiries, and more efficient content management can improve the user experience and increase the effectiveness of your online store.
When selecting AI solutions for e-commerce, begin with your customers’ needs and a specific business objective. A chatbot requires different data and integrations from a recommendation engine, while automated product description generation has its own requirements. A clearly defined use case makes it easier to evaluate results and expand the implementation over time.
Do you already know which AI applications could work for your business? Get in touch with the Tandemite team. Together, we will analyze your processes, data, and e-commerce architecture and help you plan an implementation aligned with your business goals.
FAQ
Where should you start when implementing AI in e-commerce?
It is best to begin with a single process that has a clearly defined problem and a measurable outcome. This could involve reducing customer service response times, improving product search, automating product descriptions, or increasing the relevance of recommendations. Before implementation begins, it is also worth assessing data quality, the integration approach, and responsibility for reviewing the results.
What data is needed to use AI in an online store?
The required data depends on the use case. Recommendation engines need product information and user behavior data, chatbots require an up-to-date knowledge base, while content generation relies on structured PIM data and brand guidelines. Data quality, accuracy, and consistency are essential.
How should the results of an AI implementation in e-commerce be measured?
The metrics should reflect the objective of the implementation. For recommendation engines, this may include conversion rate and average order value. For chatbots, useful measures include response time and the number of resolved enquiries. For content automation, publishing time and the number of required revisions may be more relevant.
Does AI-generated content require human review?
Yes. Human review helps verify factual accuracy, consistency with the brand’s tone of voice, language quality, and legal requirements. Particular attention should be given to content containing technical data, product specifications, marketing claims, or information that may influence a purchasing decision.
How can you implement an AI chatbot safely in an online store?
The chatbot should use an approved and regularly updated knowledge base, clearly inform users that they are interacting with an AI system, and transfer more complex cases to a customer service agent. It is also important to limit its access to data, monitor its responses, and define clear escalation rules.
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