How Artificial Intelligence is Revolutionizing Ecommerce Experiences

Artificial IntelligenceAs a business owner, you know what your customers want and when they want it. Or at least you think you do. Automation is already taking over with services like Amazon Go, an AI-based shopping experience. These platforms are flipping conventional wisdom on its head, illuminating insights about how, why, and when shoppers buy.

AI is quickly changing the experience of online shopping for businesses and consumers. As an ecommerce channel owner, you’ll want to leverage this evolving technology in the most effective ways possible.

Gartner predicts that by 2020, over 80 percent of all customer interactions will be handled by AI.

How has AI led to big wins for retailers?

With rich data available for AI to process and leverage, many companies are seeing impressive results. Implementing artificial intelligence services for ecommerce consistently improves conversion rates.

  • Harley Davidson says AI drives 40% of its sales in New York and has increased its website visits by 566%.
  • Signature Hardware has optimized its entire product catalog with BloomReach, maximizing SEO using AI and A/B testing.
  • Cosabella has increased its conversion rates by 40% using Sentient Ascend.

Understanding Customer Behavior

AI can observe a user’s digital activity and the behavior of users across the web, deciphering their intent. Personalization then parallels the work of an experienced store associate. When you walk into a store, the salesperson who works there can learn a lot about you. They learn from what you say to them, and they begin building their understanding by observing your behavior:

  • What aisles and products do you pause in front of?
  • Do you browse one aisle, then head to another with products that might be used for the same purpose?
  • Do you examine an expensive item, then put it back and reach for a less costly one?

A constantly learning AI that understands language can draw similar conclusions from online behavior. It understands not just what words mean, but also how they relate to the products in the store. An AI system can serve up recommendations relevant to each individual consumer.

Predictive Analytics

AI-based predictive analytics helps to keep customers engaged on an ecommerce site. The program will offer upsells and attempt to re-engage for further business or convince a customer to go back to an abandoned basket. Marketers are already using predictive analytics to drive conversion, but now it’s happening at the cart level.

AI supported predictive and prescriptive analytics, supported by an automated delivery of the pre-determined content through the right channel helps keep customers engaged and drives more business. Delivery could be into the site in real-time to drive cross and upsells. Or, by using the time and channel predicted to get the best possible engagement. AI will attempt to re-engage for further business or convince a customer to go back to an abandoned shopping cart.

The Bottom Line

AI programs are spreading rapidly to ecommerce websites. Early Adopters will have a significant competitive advantage by offering a better customer experience, and gaining higher sales per customer. If you’re running an ecommerce business and not currently leveraging the power of AI, now is the time to get started! Optimize your shopping experience with data-rich predictive analytics, targeting, and machine learning. provides a helpful infographic that shows how AI in ecommerce can grow your business.

For more info on how to bring AI to your ecommerce platform, contact Tenzing today.

Aisling McCaffrey

Demand Marketing Specialist at Thinkwrap
Aisling is our Demand Marketing Specialist at Thinkwrap, and loves working with both technology and humans. She studied International Business (concentrating in Marketing) and has spent several years living and working in China, mostly in Shanghai, where she became passionate about global innovation and how the use of social media changes in different cultures. Aisling likes to keep up on internet trends - from business to memes - and is always looking for new ways to learn or entertain herself.