How to Use Machine Learning and AI in Ecommerce: Benefits and Examples

September 13, 2022

Profound shifts in the eCommerce sector are being brought about by AI and ML. By the year 2025, it is anticipated that artificial intelligence technology would be responsible for 95% of all consumer communication. Industry leaders in online commerce already use machine learning. According to the statistics, the amount of money that will be made via the use of AI in eCommerce will reach as high as $38.8 billion worldwide by the year 2025. So no wonder why more and more businesses turn to IT Delight for online store development services. In fact, they are preparing for a better future.

Definitions of Machine Learning and AI: What Do They Mean?

The two terms are sometimes used interchangeably, however, ML is technically a subset of AI whereas AI refers to the general concept of a machine demonstrating human-like logic. A more comprehensive concept than ML, artificial intelligence (AI) can encompass not just learning but also the modification of thinking and perceptions as well. Algorithms that analyze data and draw conclusions or perform tasks are the foundation of ML. The more data an algorithm processes, the more precise its results.

Machine learning (ML) is a branch of artificial intelligence that examines how computers may “learn” logical principles and act appropriately without being explicitly programmed for each task. Artificial intelligence (AI) is the process of giving a machine the ability to mimic human decision-making. AI makes use of ML in order to collect data and figure out how to interact with it.

How Can AI and ML Help to Benefit Online Shopping?

Artificial intelligence (AI) and machine learning both have several applications in the field of e-commerce that may help firms improve their operations. Applications of AI in e-commerce are founded on data collected from customers.

Utilizing a variety of data sources to expand your company is made possible by today’s advanced technology as well as the current way of life in general. Listed below are some of them:

  • Reviews
  • Transcripts from call centers and organizations that provide customer care
  • Record of previous searches as well as purchases
  • Analytics of site traffic
  • Online networking sites
  • Clothes-integrated electronics.

On the one hand, these data sources present enormous prospects for businesses, while on the other side, they present substantial work volumes for AI engineers.

The advantages that AI and ML can bring to online shopping

With the right data in hand, ML and AI may have a significant influence on organizations by streamlining and automating several operations. Aside from improving risk assessments, the technologies may also generate in-depth suggestions for business intelligence purposes and carry out other prediction activities.

The question, therefore, becomes, what specific advantages do ML and AI provide to the online store?

  • Improvements can be made to product offerings based on user input and analysis of market trends.
  • Using actual information, market research, and other information, you may develop more precise predictions, which will help you make better decisions.
  • Gain the most from your distribution and storage choices with the help of cutting-edge technology.
  • Improve your customer service by adhering to the current e-commerce trend of “personalization 2.0,” also known as “hyper-personalization.”
  • Explore untapped niches and refine your targeting with the help of customer persona development and market research.
  • You may save a ton of time and money by automating your company’s operations with AI and ML.
  • Get better results from your advertising campaigns.

What Are Some of the Best Applications of ML and AI in eCommerce?

Online retail giants like Amazon and eBay have successfully implemented AI at every stage of the buying and selling process. You don’t have to be an industry frontrunner to benefit from these innovations, though. Case studies of successfully implemented AI applications in online retail demonstrate that businesses of all sizes may reap the benefits of AI and ML integration.

Putting into place recommendation engines

A company’s sales can be boosted with the aid of a recommender system because of the increased personalization of the company’s offers and the improved satisfaction of its customers. Successful e-commerce platforms like eBay use AI to provide personalized suggestions and guidance to shoppers in order to enhance delivery times, prices, and interactions between buyers and sellers.

Developing a pricing strategy

Setting a fair price that satisfies both the buyer and the seller can be difficult. Several factors, such as manufacturing costs, client capacities, and competitive offers, combine to determine the final price of a product or service. The use of AI and ML can help you think about this problem in a completely new way. In order to establish pricing flexibility, modern data analysis technologies collect data from several channels. Factors like geography, client buying mentality, season, and segment-specific market prices all play a role.

Visual search

Customers often look at pictures before making a purchase, but they can’t always find the right phrases to use while looking online. The purpose of visual search is to make the process less tedious. Customers can use an image upload instead of typing out a complex query. Because of this, the shopper is able to refine their query and obtain results that better suit their needs.

Examples of Artificial Intelligence and Machine Learning in Online Commerce

After hearing about the potential uses of AI and ML in online retail, you may be wondering where to find actual implementations. Not much looking is required. Inspiring examples are shown below.


Amazon places a primary emphasis on providing outstanding customer service as one of its primary sources of competitive advantage. This service is supported by AI, which you might not know about.


The most cutting-edge AI and ML-enabled solutions are consistently put to use within the organization. Alibaba uses a wide variety of technologies, including AR mirrors, face-recognition payments, and smartphone games that encourage user interaction.


In order to provide a more useful and interesting shopping experience, IKEA employs augmented reality. IKEA Place, a new augmented reality software from a well-known furniture company, lets you virtually arrange your house with a wide selection of IKEA products. In addition, the items are automatically adjusted to fit the dimensions of the room.


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