Benefits and Risks of Using AI in E-Commerce

Benefits and Risks of Using AI in E-Commerce

Date & Time
April 26, 2023
Reading time
5 mins
Author Icon
Lopamudra Barik

Do you know that, in the coming years, personification will be offered by AI, according to roughly 70% of eCommerce leaders? And around 51% of them said they were pursuing the same goal for the expansion of their company. As you can see, AI is quite important in the eCommerce industry.

Today's online retailers can give a superior user and customer experience in eCommerce and make wise business decisions using consumer data thanks to AI. In this post, we've discussed some useful yet effective ways eCommerce companies employ AI to enhance the online purchasing experience.

To compete with other retail enterprises, it is essential for a business to have an eCommerce platform. You won't be increasing your revenue if your internet store can't sell products online. Additionally, since the pandemic, eCommerce firms have grown significantly.

We now live in a time when social media, technology, and the internet are more pervasive than ever thanks to the innovative and transformative application of technology. All of these factors have led to the adoption of the internet market by many flourishing companies, who are now looking for ways to increase sales through it.

AI's Benefits for eCommerce Businesses

You may now have a better understanding of its significance. A little curious to learn more? Common! Let's continue learning about the advantages of eCommerce AI.

This demonstrates how AI can be used on your eCommerce site subtly or even without your knowledge. The following are the top nine advantages of using AI in your eCommerce business:

1. Search visually

Ever wanted to buy anything after seeing it on the internet? Let's assume you saw a dress. But you don't know where you'll get it from. Not to worry! With the use of a visual search feature, the identical product may now be located.

Search visually
Visual search has been adopted by so many large companies, like Pinterest, Google, Bing, and Amazon


The visual search capabilities are the software that powers different eCommerce websites. The technology used for visual searches can decipher images to extract information like colour, shape, size, brand, or fabric. The customers can upload their images and use this feature to find products that are quite similar to them.

To put it another way,AI-based visual search uses real pictures like screenshots and photos to conduct web searches. By examining the visual content, it determines the pertinent outcome. This is mostly beneficial to the fashion and home industriousness.

Visual search has been adopted by so many large companies, like Pinterest, Google, Bing, and Amazon. Do you know about Google Lens? Additionally, it functions as a visual search engine where you may locate anything.

2. Perspective Marketing

What a blessing if they begin giving you what you require without you having to ask. Right? This is when AI enters the picture. By looking at a customer's prior behaviour, it can determine what they want. Then, just display those items.


Marketing with a foresight's a highly powerful weapon. Your eCommerce company needs to start predicting potential client needs if you want to grow. With the use of foresight marketing, you can optimise your eCommerce market to only show the products that your customers are interested in, as well as information about how they perceive various price points for various products.

3. Personalisation

The marketing messages from well-known firms, such as "Harry, your cart is waiting for you,"Exclusively For You," and others. They are successful in these areas. You must have seen how well the personalization principle is implemented on each of these websites.


ECommerce companies may simply develop individualised marketing plans to engage with their customers with the use of AI. However, personalisation is nothing new for online shopping, and if you use Amazon, you will understand exactly what we mean.

Are you aware? A little over 70% of marketers think AI may aid in personalising their online stores.


Nevertheless, personalisation has reached a new level because to advancements in artificial intelligence and machine learning. AI technology continuously analyses all the channels and devices, including websites and mobile applications, to provide a global client view. It enables companies to deliver a faultless experience across all platforms.

4. Automatic Pricing

It can take a lot of time and effort to manually change the prices of your products, whether you have 10 or 100. However, using AI, you may adjust product prices based on a variety of data factors.

Automatic Pricing
using AI, you may adjust product prices based on a variety of data factors

You can leverage your inventory, market circumstances, capacity, consumer demand and behaviour, as well as all of these factors to automatically establish the prices in real-time.

5. Improved customer service

By providing excellent client services, artificial intelligence is also advantageous to eCommerce enterprises. Businesses can provide their clients with more effective support by utilising AI.

These chatbots are trained to converse with customers in a manner  to that of a human. As soon as a customer enters the website(company), they greet them. Additionally, they address any questions and concerns of their clients.


The reps are relieved of their obligations by this chatbot function. They have more time to concentration other crucial areas as a result.

6. Product Suggestions

Businesses can give their clients recommendations for various products using AI. These suggestions will increase sales.

Product Suggestions


The average order value is one of the most important eCommerce KPIs for organisations. Your company's AOV has a direct bearing on the amount of money you bring in. You can also improve it by utilising artificial intelligence.

Artificial intelligence can influence client purchasing decisions by using data (such as past orders, browsing patterns, and more). Customers simply can't resist a fantastic product recommendation, therefore they wind up making more purchases from your online store. Consequently, it's a winning situation for your company.

7. Fraud Prevention and Detection

Threats and frauds are growing along with the digital world's expansion day by day. Avoiding these unneeded frauds and dangers is a key factor in the implementation of AI in enterprises.


However, since the COVID, online dangers have grown significantly. However, adopting AI will allow you to avoid all of these risks. Your online store will benefit greatly from machine learning and artificial intelligence.

Your website may make decisions in real-time by utilising machine learning. Overall, they both will help you avoid all types of cyber attacks, hacks, and frauds.

8. Automated eCommerce

The internet is a 24/7 environment! Yes, they must be accessible to users on a variety of channels . ECommerce Automation enters the picture in this situation. For various eCommerce organisations, automating the customer support services can save energy, time, and operating capital.


Thankfully, artificial intelligence has demonstrated that it would be very beneficial to eCommerce companies. Automation has gotten incredibly simple thanks to AI. It completes repetitive activities and streamlines productivity in both the front and back ends.

AI has made it possible to automate a wide range of tasks, including the display of the newest products across channels, coordination of sales, completion of high-risk transactions, providing discounts to customers, and many more.


Automation also relieves businesses of the responsibility of consistently responding to customer inquiries. The owners of eCommerce businesses can then concentrate more on the demanding and crucial responsibilities involved in running their companies as a result.

9. Re-marketing to prospective customers

Re-marketing is more  reminding the target market of a brand and its products in an eCommerce business. Reaching users who are currently your clients or who have previously visited your website is the goal of re targeting strategies.

These customers may have previously made purchases from you or they may have abandoned their shopping cart before making a purchase.

Remarketing to prospective customers
Re-marketing puts your company at the top of the customer's list of priorities.


An eCommerce company can determine each customer's behavioural pattern using AI computer vision by analysing sales data and the most popular products that are seen or bought.Later, you can utilise this information to entice them back to your eCommerce website. Here, push notifications are the most effective re-marketing tactic.


Businesses employ AI in their re-marketing strategies as a practical and affordable tactic. Re-marketing puts your company at the top of the customer's list of priorities. Therefore ,when people shop online in the future, your name will be one of the first to come to mind.


This marks the conclusion of our blog. We've noted why artificial intelligence is so significant in the online world. Nowadays, a great deal of businesses are profiting greatly from AI. Web development for eCommerce benefits greatly from AI.

Today's eCommerce organisations use AI and data gathered from customers and businesses to more effectively estimate future results and modify their marketing strategies, enabling them to make educated decisions.


What is AI in E-Commerce?

AI (Artificial Intelligence) in E-Commerce refers to the use of intelligent algorithms and machine learning models to improve the efficiency and accuracy of various processes involved in online shopping, such as product recommendations, customer service, fraud detection, and inventory management.

What are the benefits of using AI in E-Commerce?

Some of the benefits of using AI in E-Commerce include: Personalized product recommendations based on customers' browsing and purchase history Improved customer service through chatbots and virtual assistants Enhanced fraud detection and prevention More efficient and accurate inventory management Optimized pricing and promotion strategies based on demand forecasting and competitor analysis Streamlined supply chain management through predictive analytics

What are the risks of using AI in E-Commerce?

Some of the risks of using AI in E-Commerce include: Loss of privacy and data security due to the collection and use of personal information Biased decision-making and discrimination based on factors such as race, gender, or socioeconomic status Lack of transparency and accountability in algorithms and decision-making processes Dependence on AI systems that may fail or malfunction, leading to business disruptions or customer dissatisfaction Negative impact on employment as AI replaces human workers in some areas of E-Commerce operations.

How can businesses mitigate the risks of using AI in E-Commerce?

To mitigate the risks of using AI in E-Commerce, businesses can: Implement robust data privacy and security measures to protect customers' personal information Regularly audit and test AI systems to identify and correct biases and errors Ensure transparency and explainability in algorithms and decision-making processes Provide training and support for human workers whose roles may be impacted by AI adoption Continuously monitor and evaluate the performance and impact of AI systems on business operations and customer experience.

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