How do you think AI in e-commerce is changing the game? This article might help you understand some of the important applications of artificial intelligence in e-commerce.

How is AI used in e-commerce?

Before answering this question, let us know a little about AI and e-commerce.

Artificial intelligence (AI)

Artificial intelligence or AI is the simulation of human intelligence into machines, programming them to act and make human actions. This term can also be applied to any machine that portraits human behavior, such as learning and problem-solving. It is a branch of computer science that focuses mostly on the development of intelligent machines. For example, this can include, Speech recognition, planning, learning, and problem-solving.

Leaders say, “ there is no reason and no way that a human mind can keep up with an artificial intelligence machine by 2035.”

According to studies, while the global e-commerce sales are about $4.8 billion by 2021, Gartner predicts that around 80% of the overall customer interactions are carried out by AI technologies by the year 2020.


Yeah, what is e-commerce? It is a platform where you can buy and sell goods and services, transmitting funds or data, usually overran by an electronic network, primarily being the Internet. The easiest examples to understand e-commerce are Amazon, Flipkart, eBay.

Reverting back, how is AI used in e-commerce?

Of course! Artificial intelligence in the e-commerce industry has always been utilized by many online retailers for providing various services like chatbots, analyzing customer comments, services to online shoppers, and many more.

To brief out some major AI uses in e-commerce are as follows : 

  • AI provides virtual assistance in e-commerce. 

  • AI intelligently gives product recommendations to the customers. 

  • AI in e-commerce marketing also provides personalization. 

  • Efficient inventory management is all about maintaining the right level of inventory, which is again fulfilled by AI. 

  • It also helps enable smart solutions for the e-commerce industry.

As told, artificial intelligence in e-commerce is playing a crucial role in driving creative solutions and better customer experiences. However, the leading uses of artificial intelligence in this area are personalized shopping, product recommendations, and inventory management.

Did you know? Amazon’s product recommendation technology is driving the mode of conversation which is primarily enabled by artificial intelligence, this rose its overall venue by 35% in product up-selling and cross-selling

If you are an online retailer, then make sure you choose the right AI for your business.

Also, did you know that AI can predict behavior seamlessly and keenly? Sometimes AI can also develop its own models – scary, I get it

Other uses of artificial intelligence:

Artificial intelligence is not just used in e-commerce but also in other various platforms.

  • An AI-powered social monitoring tool can deliver insights from your brand’s social media profiles and audience, making it used in social media.

  • AI can also help in agriculture while using machine learning algorithms in connections with satellites and drones that help us predict weather conditions and analyze crop sustainability.

  • AI in healthcare is usually used to mimic human cognition in the analysis and presentation of complex medical and healthcare data.

As much as we talked about the advantages of artificial intelligence, even it comes with a downside.

  • AI-enabled machines set up are usually expensive 

  • Machines lack creativity 

  • There is a higher risk of unemployment

  • No emotions can be daunting at times, this might affect the customer experience Artificial intelligence do not understand morals or ethics

AI | E-Commerce