How Artificial Intelligence (AI)Implications Transforming the Face of Ecommerce

eCommerce | Ecommerce Trends | May 14, 2018
By MobiCommerce
Artificial intelligence transforming face of eCommerce

I know you all have must heard about Artificial Intelligence somewhere or the other as it is the most discussed topic now-a-days. It is the rising technology helping almost all the industry to one or the other way to improve productivity and the ease of work.

Artificial Intelligence – Transforming Industries

Defining it according to the father of Artificial Intelligence, John McCarthy, it is “The science and engineering of making intelligent machines, especially intelligent computer programs”.

It is the technological advancement that simulates human intelligence in machines especially in computers. In general terms, it is all about making machines to understand human language, behaviour and sentiments and work intelligently without interference of human. It is evolving at a rapid pace and has the capability to work alongside the humans. Sound interesting right!

When the machines will

Then, we will experience advantages of strong AI.


AI – Intelligent Analysis, Intelligent Interaction and Intelligent Automation!

Artificial Intelligent has already enabled various industries like automobile, healthcare, Data security, Finance and accountancy and many more including Ecommerce. If you took a glance around the technology you’re using, you’ll get to know that AI has already entered in your daily lifestyle. Think of the facilities provided by your smart phone.

UBER, by providing cab booking application using AI technology has made the life very easier and it is now embedded in your routines.

Amzon has designed its store called “AmazonGo” where you can go, shop whatever you want and just walk away without standing in queue to pay the bills! It automatically identifies the products you bought, charge you from your account and send you invoice on your mobile. No human interaction, enabled by AI technology.

In Australia, few innovators have developed software based on AI which can predict localized ride demand in next 30 minutes within a 500 square meter area. It enhances the business and also saves wastage of time in waiting for customers.

Implication of Artificial Intelligence in Ecommerce

AI has also not left ecommerce or mobile commerce industry by transforming it the way people experience online shopping. Find out the ways AI has and will transform Ecommerce business.

Natural Language Processing (NLP) Capability of AI

AI comprises of Robotics, Machine Learning, Expert systems, General Intelligence and Natural Language Processing (NLP). NLP helps ecommerce industry to very great extent.

NLP includes text translation, sentiment analysis and speech recognition that enables machine for contextual understanding of human language. Chatbots, product searches, Customer relationship management etc. is based on NLP enhancing successful conversions.

It helps to improve in store purchase behaviour result into high probability of business growth.
CHATBOT enables “Chat Now” for prompt assistance

You must have seen “Chat Now” or “Online Chat Assistant” while browsing through websites and I am sure you must have used that as well. There are high chances that there won’t be any human talent in the backend and machines via “bots’ technology was assisting you to solve your queries and questions!

Natural Language Processing

AI based Bots technology with IT service management system has developed ‘Chatbots’ to reduce human efforts, prompt reply and 24*7 service. It enables conversational and natural language user interfaces by understanding the human language and expressions and replying accordingly. Data base is the most important factor while developing such technology. It’s all made possible with the Natural Language Processing capabilities of AI.

As per Juniper’s new research, it is forecasted that Chatbots will be responsible for cost savings of over $8 billion p.a. by 2022, up from $20 million in 2017 in retail, ecommerce, healthcare and banking industries.

According to TechEmergence, chatbots are expected to be the number one consumer application of AI over the next five years.

Enabling “Search” to be more powerful

Current search algorithm works based on keyword matches, search queries, keywords in product title or description. Thus, it shows multiple different products in search results and reduces the relevancy. It increases visitor’s burden to identify the product they want from search results! So, if customer won’t find the required products within certain time, customer goes away without making purchase and ecommerce sites have to bear the cost of losing customer.

Improving this results with the help of AI will enhance the search performance and of course the sales ratio. AI will enhance contextual understanding, practical intelligence and ability to understand natural language and expression powered with NLP. This will result into increased transaction, consumer satisfaction, retention and ultimately more conversions.

As per the forecast made by Gartner, “more than 85% of customer interactions will be managed without a human by 2020.”

“Image Search” Classification

Many of the time it happens that you wanted to buy certain products but you don’t know the name of it. AI allows image search option to you to resolve this problem.

You can experience this in Pinterest, where you can pin the product you want and then it will pull visually similar such results.

Voice Recognition

Virtual Personal Assistant is increasing day by day with NLP and voice interaction has increased at a compound annual growth rate of 43% from 2015 to 2020 according to Gartner. Voice commands has enabled consumer to do voice search, accepted widely for ease of work and faster process.

voice-searchInventory Management

Smart technology is helping you to manage your products and stocks by keeping the track of your inventory, providing analytics report and ordering it when stock gets low. AI also analyse your business, does the predictive analyse and identify the future demands based on current business trends, consumer patterns and factors that are driving the business and industry. It’s not an easy but will yield more results for you.

Samsung’s Family Hub fridge actually monitors the products kept in your fridge with the help of camera and ask you to order groceries when the stock gets low. AI can also recommend you about recipes for upcoming meals based on inventory!

Such technology will reduce human labour involved in managing inventory and is very helpful for ecommerce and marketplace sites to arrange the stocks.

Personalised Product Recommendation

You searched for particular product on ecommerce site e.g. on Amazon and left without making purchase. When next time you will browse any other site, you will see the ads for that product or such relevant products over there.

AI recommends you personalised products based on choice and likelihood based on your search history. This gives easy platform for customer to buy the product quickly without much hustle of searching it, also enabling more business of ecommerce owners.

Predictive Analysis and CRM

AI has the ability to do all the predictive analysis of your customer’s data and will tell you who has the potential to buy the products along with bifurcating customers based on that buying requirements and patterns, who is likely to buy products, what will they buy and many more. You just need to have AI enabled program installed and machine will do everything for you.

Artificial Intelligence will not be limited to this, it is growing at a very fast pace and 2018 is dramatically becoming transforming phase for ecommerce. It would be highly accepted by the benefits it provides to consumers over ecommerce mobile apps or websites. Gartner predicts that by 2020, “AI will be the top most investment priority for more than 20% of CIOs.”

Stay tuned with the latest AI updates and Start implementing it to yield better improved results and gains.


MobiCommerce is a leading end-to-end eCommerce software solutions provider. Known for developing scalable and feature-rich Marketplaces, eCommerce websites, mobile apps, and Progressive Web Apps (PWAs), MobiCommerce boasts of being more feature-rich and fast as compared to its competitors. It has a steady clientele from the GCC and Europe.

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