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22 Feb 2023
Artificial Intelligence

The Role of AI in E-Commerce

With the rise of ChatGPT, AI gained the full attention of the world on its capabilities. AI has been consistently disrupting the tech industry and...
AI In Ecommerce

With the rise of ChatGPT, AI gained the full attention of the world on its capabilities. AI has been consistently disrupting the tech industry and it will continue to do so. The global AI in retail market size is expected to grow at a CAGR of 30.6% from 2022 to 2028 and was valued at USD 5.19 bn in 2022 and to reach USD 25.83 bn by 2028.

AI In ECommerce

As E-Commerce continues to grow, there is a corresponding increase in the use of AI to enhance the shopping experience for customers. While there are numerous benefits of using AI in E-Commerce, we have chosen four main benefits that AI provides:

  • Personalization

  • Automation

  • Improved Accuracy

  • Improved Efficiency


In the eCommerce sector, personalization involves modifying the shopping experience to take into account the needs, wants, preferences, and tastes of each individual customer. For instance, they can run an automated personalized email campaign, display recently viewed products, or generate a list of personalized products.

Prior to the adoption of AI, personalization was a feature of the eCommerce sector. Computers can now process large amounts of data, enabling optimization and real-time analytics. eCommerce stores regularly see a huge number of customers and hundreds of thousands of products. On-the-spot data analysis using software or an algorithm can quickly uncover patterns in customer behavior. eCommerce stores can take advantage of customers’ propensity for impulse purchases by providing personalized product recommendations. By recommending various products to customers at the checkout based on their preferred brands and categories, you can cross-sell or upsell products as well.


Online retailers are now accessible 24/7 on a variety of channels. Most of the time, automation is necessary for this. Merchants can save time, energy, and operating capital by automating customer care. When it comes to automation, AI can be a huge benefit to owners of eCommerce businesses.

An ecommerce platform can manage and carry out all repetitive operations with automation, and the workflow on the front and back ends is made simpler. With the help of artificial intelligence (AI), eCommerce companies can automate everything from promoting new products across numerous channels to synchronizing sales, spotting high-risk transactions, giving loyal consumers discounts, etc. Additionally, giving automated chatbots the responsibility of responding to common inquiries frees up eCommerce business owners to concentrate on challenging inquiries.

Improved Accuracy

Sales forecast accuracy can be increased by AI. AI can forecast future sales trends by examining historical sales data. For e-commerce start-ups, this can be valuable for forecasting demand and organizing inventory levels. AI can also be used to spot patterns in client behavior that can point to shifting preferences or trends. E-commerce start-ups can benefit from this by staying ahead of the curve and modifying their strategy as necessary.

Improved Efficiency

AI can also be applied to boost e-commerce operations’ effectiveness. AI can be used, for instance, to improve price plans depending on variables like inventory levels, demand, and competitive pricing. This can aid new businesses in e-commerce in maximizing profits while lowering the possibility of overstocking or under-pricing goods.

Fraud detection is another area where AI can drive growth. AI can identify patterns in client behavior that can point to fraud by using machine learning algorithms. This can save time and lower the possibility of financial losses by assisting new e-commerce companies in identifying and stopping fraudulent transactions before they happen.

What’s Next For AI?

A report stated that nearly 85% of customer interactions would be managed without a human by 2020. With emails, phone calls, and chats being efficiently and quickly responded to by automated systems, these stats appear to have been realistic. It is forecasted that the profit made from the direct or indirect use of AI software will rise to USD 59.8 bn by 2025.

With that said, AI is still imperfect and there are a lot of unanswered questions when it comes to AI. We will still need to further improve AI algorithms and gradually it will further assist growth in E-Commerce.

AI plays a crucial role in e-commerce start-ups and AI may help e-commerce start-ups deliver a better consumer experience while also increasing their bottom line through personalization, automation, enhanced accuracy, and improved efficiency. For e-commerce start-ups, the usage of AI will become more crucial as the e-commerce sector continues to expand.

Artificial Intelligence in Ecommerce

Storm5 Is here to Help

As the AI continues to grow, so does the need for talent to facilitate this. At Storm5 we have specialized in connecting RetailTech talent with disruptive RetailTech players. We can assist in any stage of your growth by connecting you with the right people. Please don’t hesitate to get in touch and we would be thrilled to see how we can help and support you in your journey and with your recruitment needs.

We’ve helped some of the most successful RetailTech startups grow.

— now it’s your turn.