E-commerce is one of the fastest-growing global industries, achieving a global scale of 5.7 trillion in 2024. Given this scale, the industry also has a lot of potential opportunities for automation and Generative AI integrations.
To explore this opportunity and the use cases for generative AI chatbots, we asked 7 innovators in the field about how they’re using generative AI automation for their businesses. In this article, E-commerce innovators will talk about:
“A revolutionary strategy we’ve embraced involves using Generative AI to create virtual shopping assistants that evolve based on consumer interactions. Unlike static AI models, these assistants learn and adapt their recommendations and responses based on ongoing customer dialogue, mimicking a personal shopping experience. This level of personalized interaction helps us understand consumer preferences, which can be used to tailor marketing strategy. The dynamic learning capability of these AI assistants ensures that each customer interaction becomes more refined and personalized, enhancing customer satisfaction and loyalty.
Generative AI pushes the boundaries of product development by predicting and generating future consumer products based on emerging trends and historical data. This AI-driven approach to product innovation allows businesses to stay ahead of market curves and consumer expectations by introducing products that meet predicted desires and needs.
To capitalize on this, businesses should consider integrating cross-industry data feeds into their AI systems to enhance predictive accuracy and relevance. This proactive product development strategy ensures market relevance and positions companies as trendsetters in their respective industries.”
We also emphasize the cross-industry data-feeding strategy because it improves AI analytics and learning capacity. This also plays a significant role in the next point, which is how recommendations from AI can empower AOV to increase across E-commerce platforms.
2. Increase AOV with AI Recommendations
Amazon recently launched Rufus to offer targeted recommendations for its US customers. Generative AI can understand product information and tailor it to suit a customer’s needs and wants.
“At Thrive, we’ve seen remarkable success with personalized product recommendations powered by Generative AI. We first pitched this idea to a skeptical E-commerce client selling outdoor gear. They were hesitant, thinking their customers preferred to browse on their own. But we convinced them to give it a try.
We implemented an AI system that analyzes customer browsing history, purchase patterns, and social media activity to generate hyper-personalized product suggestions. The results were astounding – within three months, their average order value increased by 28%. I’ll never forget the client’s excited call when they saw the first month’s results. The key was the AI’s ability to understand context and nuance. For instance, it could distinguish between someone buying a tent for a one-time festival versus an avid camper, adjusting recommendations accordingly.
My advice for businesses looking to stay ahead? Start small, but think big. Begin with one aspect of your E-commerce operation, like we did with product recommendations, and gradually expand. Also, prioritize data quality – the effectiveness of AI systems depends heavily on the data they’re trained on. I learned this the hard way when an early version of our system made some embarrassing recommendations due to skewed data. Always keep the customer experience at the forefront. The goal of AI should be to enhance, not complicate, the shopping journey.”
Next, we talk about another core area of E-commerce operations: inventory management.
3. Inventory Management
According to Valentin Radu, the CEO & Founder of Omniconvert, personalized recommendations and inventory management are two core areas where generative AI is bringing innovation. He says:
Valentin Radu Quote
“As an E-commerce business owner, I’ve closely observed how Generative AI reshapes our industry. One key innovation that stands out is personalized customer experiences, tailored by analyzing vast datasets to predict preferences and shopping behavior. This drives customer engagement and increases conversion rates.
AI-enabled chatbots and virtual assistants have also enhanced customer service by providing timely, accurate support freeing up human resources for more strategic tasks.
In inventory management, AI has optimized stock levels, reducing waste and ensuring products are readily available. For businesses aiming to stay competitive, focusing on integrating AI-driven data analytics into their operations is essential to uncover insights that could inform growth strategies.”
Our next innovator, Ilija, also agrees with Valentin that AI-driven personalization is one of the core areas of improvement with generative AI chatbots.
4. AI-Assisted Shopping
Have you ever been confused by the sheer amount of choices on an E-commerce platform? According to Ilija Sekulov, the marketing director at Mailbutler, this problem can be solved with generative AI. He said:
IIija Sekulov Quote
“Generative AI is changing how people shop online by making things more personalized. One fundamental way is through product recommendations. AI looks at what customers have browsed or bought and suggests items they might like. This makes it easier for shoppers to find what they need, increasing sales and keeping them coming back.
AI is also improving customer service. Chatbots and virtual assistants now handle many questions, helping customers quickly without needing a human to respond. This creates a faster and smoother experience, which people appreciate when shopping online.
Content creation is another area where AI is helping. AI can write product descriptions and marketing messages, saving businesses time. By using AI in these areas, businesses can better connect with customers, improve the shopping experience, and focus on what’s most important.”
Using generative AI as a recommendation engine in E-commerce can be beneficial. For example, at Kommunicate, we use generative AI to filter out repetitive questions so that support teams can focus on important tasks.
Aside from being a sound system for recommendations, AI can also become a good source for content personalization, as is pointed out in the next section.
5. AI-Driven Engagement
Mimi Nguyen is a Co-Founder of Cafely and a big believer in building engagement with personalized email campaigns and recommendations. She says:
Mimi Nguyen Quote
“Using generative AI in our E-commerce, Cafely has completely changed how we engage with end consumers. We started using it to provide more customized purchasing experiences. Based on customers ‘ previous purchase orders, I have noticed that these AI-driven product recommendations are showing better conversion rates. It feels like we know each customer better, and that’s important to us as we build trust and loyalty in the process. We also use AI to create ad copy and email campaigns (as well as our billing), which saves us time and keeps us on-brand.
I recommend that other companies embrace artificial intelligence for efficiency but keep the human touch; consumers still value that personal connection, which will help you stand out in a saturated digital market.”
Engagement can be driven in multiple formats, and while E-commerce businesses have traditionally used images and text to drive it, our next innovator has a new recommendation.
6. AI Voice Recognition for E-Commerce
Jessica Bane, the Director of Business Promotions at GoPromotional, recommends creating a hands-free customer shopping experience. She says:
Jessica Bane Quote
“Voice commerce is quickly reshaping how consumers interact with E-commerce platforms. Integrating AI-driven voice recognition technology allows customers to shop hands-free using voice commands, creating a more convenient and accessible shopping experience. Imagine a customer searching for a new pair of trainers, placing the order, and tracking the shipment—all without touching a screen. This technology streamlines the shopping process and caters to multitaskers and those with disabilities.
To stay competitive, businesses should focus on developing robust voice commerce capabilities. Begin with user-friendly voice algorithms that correctly interpret spoken language, including varied accents and dialects. Ensure your voice interface is intuitive and can handle complex queries like detailed product comparisons or personalized recommendations. Regularly update your AI to learn from interactions and continuously improve. Implementing these strategies can significantly enhance customer satisfaction and drive sales growth.”
Updating Generative AI processes regularly to match customer expectations is essential. It also forms the core part of the thesis of our next innovator.
7. Product Photography
Product photography and modeling are among the most significant expenses in E-commerce marketing. However, several AI products are solving this problem through fine-tuned diffusion models.
According to David Rubie-Todd, Sticker‘s co-founder and marketing head, this space is ready for large-scale disruption.
David Rubie-Todd Quote
“Among the many interesting ones most people don’t think of is product photography. Now, with AI, you can take an image of your product, either from your supplier or with your phone, and put it anywhere you want, e.g., on the seashore, on top of a mountain, or in a studio.
We have discovered a Shopify AI app called Snapsho, which does this. I won’t link it because we’re not connected with them, but this generative AI tool is a game-changer for us. We no longer need to contact a third party for professional pictures of our product.
The results are also super impressive, and I’ve heard from people that it’s saved them thousands of dollars on photography fees.
This will be a massive part of many E-commerce businesses in the future because it saves so much time and money!”
Take Away
As you can see, one of the core use cases for generative AI across E-commerce is that of personalization. Recommender systems, generative images, and videos are where AI can help improve the E-commerce experience for their regular customers.
This is reflected in our experience, too, with a wide portion of our client base choosing AI-based customer service because of the personalization of the offer.
Also, as echoed by the innovators we interviewed for this article, it’s important to strategize for AI innovations from day 1. This will provide businesses with ample opportunities to evolve and serve their customers better.
Ready to enhance your customer experience and boost sales with adaptive AI assistants? Kommunicate’s AI-driven chatbots are here to automate support, drive engagement, and personalize the shopping journey for your customers. Start your AI journey today with Kommunicate and revolutionize your E-commerce. Get Started Now!
As the Head of Growth, Marketing & Sales, Yogesh is a dynamic and results-driven leader with over 10+ years of experience in strategic marketing, sales, and business development.
