Leveraging AI for Powerful Product Recommendations in E-commerce

Leveraging AI for Powerful Product Recommendations in E-commerce

Date & Time
April 27, 2023
Reading time
5 mins
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Lopamudra Barik

AI in online retail? Consider the customized shopping experience offered by Amazon, where AI, or artificial intelligence, makes suggestions to visitors based on their preferences.


It is becoming more and more important to incorporate intelligence or AI into the architecture of eCommerce websites as more and more people choose to purchase online rather than at traditional stores for a variety of reasons, including customer engagement, fraud detection, retention, or to boost conversions. 

We wanted to give our readers who run online businesses more information about how AI consultants can improve customer buying experiences. We thus consulted six experts to determine the best application of AI for e-commerce platforms.

How Your Online Store can be benefited from AI product recommendations

If you manage an online store, you are aware of the value of product suggestions. After all, one of the simplest methods to increase sales and improve customer happiness is through product recommendations.

Although there are various ways to promote your product line, artificial intelligence (AI) product suggestions are increasingly replacing other strategies as the technique of choice for many companies.


Making use of AI product recommendations has several advantages. AI product recommends can benefit your company in a number of ways, from enhancing customer engagement and sales to increasing conversion rates. To understand more about the advantages of implementing AI product recommendations in your online business, read this blog.

Personalised AI Product Recommendations

The fact that AI product recommendations are extremely individualised is one of their main advantages. Machine learning enables AI-driven product recommendation engines to accumulate knowledge about a customer's unique tastes and traits over time.

As a result, the suggestions customers get will be more pertinent and beneficial and match them up with the goods they need.


This is crucial since customers are more likely to make a purchase when given individualised recommendations. According to studies, personalised recommendations can boost conversion rates by as much as 18%.

Now is the moment to start employing AI product recommends, if you aren't already. In order to discover how you might provide a better client experience, make sure to check out LiSA, Findologic's own AI shopping assistant.

Product Suggestions from AI Boost sales and participation

You might want to think about employing AI product recommendations if you're looking for a technique to increase your online sales. Making use of artificial intelligence, you can provide your clients specialised recommendations that are more likely to result in a purchase.


Customers are more likely to buy certain things when they get relevant and useful recommendations. They are also less inclined to leave your brand when they are more engaged with it during their buying experience.  

Why AI product recommendations are beneficial?

Using AI for product suggestions has a number of advantages, including:

Higher Sales:

The ability of AI product recommendations to improve sales is perhaps its most evident advantage. Giving customers personalised recommendations increases the likelihood that they will discover products they are interested in, which increases revenue.

The likelihood that a customer would return and make more purchases after a favourable encounter with your recommendation system is also higher.

Enhancing Customer Retention:

AI product recommendations can improve client retention in addition to boosting sales. Customers are more likely to stay with you if they have a good experience with your website and feel like they can find the things they're looking for.

Additionally, content-customers are more likely to recommend your website to their friends and family, which may result in increased sales.

More information about consumer behaviour:

You can gain deeper insights into client behaviour by employing AI for product recommendations, which is one of the side benefits. You can more fully comprehend what clients are seeking for and adjust your marketing plan by examining data points like search history and previous purchases.

Additionally, if you see that specific things are regularly recommended but never bought, there might be an issue with those products or with the way your website is set up in general. In either case, it's important knowledge that can help you run your company better.

6 Ways to leverage AI in eCommerce

A crucial element in the eCommerce sector are recommendation systems. These enable companies to use consumer data to tailor their offers and boost customer happiness.

Recommendation systems offer personalized recommendations to specific clients by comprehending their behaviour and interests. As a result, marketing is more successful, revenues are up, and client loyalty is up.

1. Match a customer's demands with a merchant's products

The psychology of selling focuses on matching a merchant's products with customers' requirements and removing barriers of purchasing. Consumers are more likely to buy a product if they spend more time considering it and its features.


By offering product information, reviews and testimonials, incentives, and FAQs, websites attempt to do this. The consumer must invest a lot of time in self-service in order to do this.

To speed up this process, many online retailers have developed"conversational commerce" models using live-chat services. However, this has proven to be expensive because each conversation needs to be handled by a real person.


A human response to reciprocity is also triggered by the dynamic nature of these encounters; if our wants are being met, we feel obligated to respond favourably. A more successful and individualised shopping experience is the ultimate result.

Additionally, these interactions provide a wealth of data that can be used by humans and machines to learn and identify sources of  that can be fixed to increase success rates, such as questions about shipping weight that cannot be answered and slow down the purchasing process.


Additionally, eCommerce websites can encourage users to participate in CHATBOT experiences on top of well-known social messaging services like Facebook Messenger.

This allows businesses to re-engage users, evaluate their shopping experiences, and potentially conduct future business with them. The way we do internet business will drastically change as a result of these AI technology.

2. Client communication in several languages

The use of shopping bots as virtual personal assistants is one of the most exciting applications of AI for eCommerce websites.


They would be able to interact with clients through a variety of channels, including textual text via chat or email, audio/voice, or even video conferencing, all with the aid of Natural Language Processing engines. 

It suggests scalability because software agents could handle thousands of concurrent users of a virtual store in a personalised, personalised manner. 

Last but not least, AI can process a wide range of data (e.g., stored in the company CRM or derived from big-data driven predictions on customers habits) and use it to efficiently involve and guide users in many processes, from marketing notifications to buyer to get post-selling services; for example, helping users to browse a website.

3. More "humans" are needed in eCommerce than are machines

The automobile, refrigerator, house, and even the AI are all currently in vogue, but what about e-commerce? The visitor or potential consumer in today's e-commerce is pleading with someone, human or AI, on the other side to assist him in purchasing the essential product 24 hours a day, but a human is much more expensive than that open door, inexpensive, that is the AI.


An AI is anon-complaining, non-sleeping, non-ill being that we can "fight"around the clock. According to its programming, an AI in an e-commerce will assist us in making the qualitative advancement that eCommerce requires. We need eCommerce to be more "human", active, and able to engage with the store because today's is cold and bland.

Businesses of all size sand budgets can use the AI technology, which provides them a competitive edge.

By labelling aspects of the image or video, the AI program automatically identifies, arranges, and visually searches content.

AI is enabling customers to identify complementary products in addition to matching products, regardless of size, color, shape, fabric, or even brand. Such software has extremely exceptional visual capabilities. The software can successfully help the consumer find the item they want by first gathering visual cues from the uploaded imagery.


One strategy that is rapidly emerging is known as "conversational commerce," and it is used by many e-commerce companies to become more sophisticated with their AI capabilities in grabbing attention. This is the intersection of visual, audible, textual, and predictive talents in the realm of eCommerce.

Retailers are finding it difficult to keep up with the rapid changes in consumer needs. This is one of the top business tactics that must be implemented if brands are to survive.  In this new era of conversational commerce, artificial intelligence is being used in the form of"chatbots" as one method of conversational driving.

In the era of Facebook, Twitter, and other social media platforms, as well as the continuously dwindling attention spans of the digital age, there is evidence to suggest that new AI-driven platforms will be crucial to the success of eCommerce.

4. To improve recommendation and fraud detection, improve this algorithm

Automated product exposure using AI and predictive machine learning.

The in-store visual merchandiser combines aesthetic talent with a science degree, and certain organisations are ordained with demi-god status, making this a tough notion for many merchants.


However, traditional wisdom fails when faced with the limitless possibilities that the internet offers. Artificial intelligence is now a reality. The most likely results will be what we observe in the future.

The greatest product recommendations have been developed by e-commerce corporations based on client preferences and search history. They could make this algorithm better to provide better recommendations and fraud detection.

In order to select the best advise, a Chabot or virtual personal shopper on a retail website may ask customers about their preferences for color or design. an image recognition algorithm that recognises product photographs submitted by users who may have seen them anywhere and clicked on them using their phone.

5. Watch out for any areas that could be automated

AI has a wide range of applications in an eCommerce website. Some complicated activities, such as product suggestion, payment fraud detection, customer service, moderating product photos, and so on, can be readily solved by AI and Machine learning(ML).


I believe that incorporating AI into an eCommerce website is dependent on two factors: data complexity and task complexity. When the work and data complexity are both high, involve unstructured data, and need judgement, integrating AI becomes critical.

For example, building a recommendation engine for a website based on a variety of factors such as user preferences, feedback, and current trends.


AI technology is still inits infancy and is not extensively used because to expensive costs, the need for massive amounts of data, and existing legacy infrastructure. As a result, firms interested in incorporating AI into their eCommerce website should begin with minimal enhancements.

Look for gaps in the systems that can be filled by automation. Look for a website development business that has relevant experience.

They can begin by automating their customer service with intelligent chatbots. Then, for client happiness, companies can include a machine learning-based product recommendation engine.

They can make use of cognitive services systems like IBMW and Google Cognitive Services. Maruti Techlabs recently incorporated Google Vision API into one of our clients' eCommerce websites to analyze product photos and censor inappropriate content.

6.Give the system a uniform feed of all interactions

To begin with, AI is not simply sprinkling some nice features on your existing site. If you truly want to benefit from AI in your eCommerce platform, you may need to rethink your entire data structure as well as how you handle online retailing.

AI can reintegrated, but in order for it to be truly successful, you must feed the system with all interactions in a unified system and then be prepared to handover control to the AI-solution, allowing it to do the hard lifting of offering the visitor a meaningful experience.


Finally, AI-based recommendation systems have become an essential component of e-commerce, giving firms with important insights into their customers' tastes and behaviour.

They are incredibly efficient at assisting businesses in identifying the products and services that their customers are most likely to acquire, and the tailored recommendations they make enable customers to quickly and easily select the stuff they wish to buy. Businesses may enhance profitability and improve consumer happiness by using the power of AI in e-commerce.

Artificial intelligence applications can also be used to apply these technology to real-world operations. Consider utilizing the power of artificial intelligence to increase the performance of your online store.


What is AI-powered product recommendation in e-commerce?

AI-powered product recommendation is a technique used by e-commerce platforms to provide personalized and relevant product suggestions to their customers based on their past interactions, browsing history, and purchase behavior.

How does AI-powered product recommendation work?

AI-powered product recommendation algorithms use machine learning models to analyze customer data and patterns to predict what products a customer may be interested in. These algorithms can consider factors such as purchase history, browsing history, product preferences, and more to make personalized recommendations.

What are the benefits of using AI-powered product recommendation in e-commerce?

The benefits of AI-powered product recommendation in e-commerce are numerous. It can help increase customer satisfaction, engagement, and loyalty by providing a personalized shopping experience. It can also increase sales and revenue by suggesting relevant products that customers may be interested in, which can lead to more purchases.

What are some popular AI-powered product recommendation algorithms?

Some popular AI-powered product recommendation algorithms include collaborative filtering, content-based filtering, and hybrid filtering.

Can AI-powered product recommendation algorithms be biased?

Yes, AI-powered product recommendation algorithms can be biased if they are trained on biased data. This can lead to certain products being recommended more frequently to certain groups of people, which can perpetuate and reinforce existing biases.

How can e-commerce platforms ensure their AI-powered product recommendation algorithms are not biased?

E-commerce platforms can ensure their AI-powered product recommendation algorithms are not biased by training them on diverse and representative data sets, regularly testing and monitoring the algorithms for bias, and implementing measures to mitigate any bias that is detected.

Is there a limit to how much data an AI-powered product recommendation algorithm can handle?

Yes, there is a limit to how much data an AI-powered product recommendation algorithm can handle. However, this limit varies depending on the complexity of the algorithm, the hardware it is running on, and the amount of data being processed.

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