KHWS Blog: How Artificial Intelligence is changing e-commerce

How Artificial Intelligence is changing e-commerce


As online shopping becomes an even bigger part of our everyday lives, marketers and e-commerce specialists are turning to Artificial Intelligence (AI) for ways to increase conversion rates.

The rise of the online personal shopper

As the shopping experience is prompted by various different mediums (emails, social media, search), many consumers turn to apps that make the shopping process simpler and quicker. Shoptagr’s (online shopping tool) CEO Jonathan Friedman predicts that “the A.I. Shopping Assistant will become the future of e-commerce” and will change online retail as we know it. Browsing will become more intelligent, more personalised. Another example is The North Face who bring the virtual personal shopper ‘to life’ with the help of IBM’s Watson in assisting customers in their quest for the perfect jacket. They achieve this by asking a set of questions through voice input technology – such as: where and when will you wear your jacket? IBM’s software scans hundreds of products in order to find perfect matches, based on real-time consumer input, as well as its own research (for example, the weather conditions in the area provided by the consumer).

Retargeting potential customers

According to AI software firm Conversica, more than 33% of marketing leads are not followed by the sales team. This is largely caused by unmanageable customer data that businesses don’t know how to use, leaving customers who have already expressed an interest in the brand’s product inevitable walk away empty-handed.

Don’t I know your face?

AI helps businesses retarget potential customers, and thus increase their conversion rates, by using facial recognition. If a customer spends a considerable amount of time looking at a specific product in-store, this information will be stored and used in their next visit. As AI expands its reach, marketers predict that omni-channel retailers will have special offers show up on customers’ devices based on what they spend their in-store time looking at.

As Seth Godin said: “Artificial Intelligence does a job we weren’t necessarily crazy about doing anyway, it does it quietly, and well, and then we take it for granted”. We have already started seeing its impact on digital marketing and e-commerce – but the bigger picture still eludes us.