AI for eCommerce:
Use Cases

Use cases of AI for eCommerce

The eCommerce landscape is increasingly competitive.  The barrier to entry has been lowered and the profit margin increased, with the result that more and more companies want to sell their products online. Hence, driving a competitive edge is a priority, now more than ever.


Leading merchants have proven that the adoption and use of Artificial Intelligence (AI) for eCommerce enables them to outpace competitors by providing critical benefits:

  • Streamlining operations to improve efficiency 
  • Delivering personalized customer experiences
  • Optimizing various aspects of the customer journey

This blog post highlights nine key use cases of AI for eCommerce.

Personalized Customer Experiences

AI-driven recommendation systems are reshaping customer engagement in eCommerce. By harnessing the capabilities of Artificial Intelligence and Machine Learning, merchants can leverage vast amounts of customer data to generate personalized product recommendations, based on browsing habits, purchase histories, and demographic information. The result: Enhanced customer experiences and increased revenue. 


The most prominent example of this use case is Amazon, whose homepage appears uniquely tailored to each individual user. No two users will see the exact same products, deals, and recommendations. The reason for that is Amazon’s advanced recommendation engine, powered by AI, which analyzes every customer’s browsing habits and purchase history to deliver a personalized experience. This has revolutionized online shopping for millions of Amazon customers worldwide.

Inventory Management and Demand Forecasting

Leveraging AI/ML algorithms is a best-in-class solution to optimize inventory management and accurately forecast demand. AI-powered systems enable merchants to prevent overstocking or inventory shortages, analyzing historical sales data, market trends, and external factors such as weather patterns., The outcomes are improved customer satisfaction, reduced costs, and growing profit margins. 


Walmart is one of the largest companies that successfully implemented AI for eCommerce operations, specifically their inventory management, proving a testament to the transformative impact of this technology.

Chatbots and Virtual Assistants

Another use case of AI for eCommerce relates to customer support: AI-powered chatbots and virtual assistants are transforming how merchants communicate with customers. These intelligent systems offer continuous support, swiftly respond to inquiries, and streamline purchases, utilizing Natural Language Processing (NLP) and Machine Learning capabilities. AI Chatbots and virtual assistants improve customer engagement, accelerate response times, and increase conversion rates.

AI for eCommerce improves customer support through chatbots and virtual assistants

Supply Chain Optimization

AI/ML algorithms present tremendous optimization opportunities for eCommerce supply chain management. Retailers may optimize their logistics, save operational costs, and minimize interruptions, using AI-powered solutions to analyze data from transportation routes, warehouse operations, and supplier performance. 


Logistic companies (such as DHL) already deploy AI to optimize their delivery routes, resulting in effective order fulfillment and satisfied customers.


Remarketing (or Retargeting) involves the use of tailored ads to re-engage past buyers and/or website users. AI enables companies to gain insights from consumer behavior, browsing history, and purchasing trends to determine the best-fit products or offers to promote in remarketing campaigns. This focused strategy vastly improves the chance that a user converts, raising revenue and ROI. 


Platforms with AI capabilities, such as Google Ads and Facebook Ads, offer advanced remarketing options to reconnect with individuals who have indicated an interest in your goods or services.

Identifying New Potential Customers

By examining and leveraging customer data, AI models can assist merchants in identifying new potential clients. These algorithms are able to discover customer groups that show comparable characteristics and patterns to their current client base by utilizing. Therefore, it is possible for businesses to create individualized product suggestions and targeted marketing campaigns for new customer acquisition.

Pricing Optimization

AI-driven dynamic pricing solutions have proven to be a game-changer for many leading merchants. Through constantly monitoring rival pricing, market demand, and other valuable aspects, these algorithms recommend the best pricing strategies to increase revenue. As a result, companies maintain flexibility and responsiveness to market changes by automatically adjusting prices in real-time.

Identifying Fake Product Reviews

The value of product reviews cannot be underestimated. A Dimensional Research study shows that a staggering 86% of all buying decisions are influenced by negative online reviews. Hence, the increase in fake negative reviews presents a severe problem for eCommerce businesses. This is where AI can help, providing methods for recognizing and eliminating false product reviews. AI algorithms may identify fake reviews by examining language patterns, buyer data, and user behavior (bot vs. human).

AI for eCommerce identifies negative fake reviews

Content Creation

Generative AI (GenAI) is a subset of Artificial Intelligence that focuses on content production.  GenAI models generate innovative and original content, ranging from product descriptions, blog articles, and social media posts, to videos, product images, etc. Incorporating generative AI into content strategies increases customer engagement while helping businesses develop thought leadership, and stay ahead of the competition.

AI continues to transform eCommerce with its tremendous opportunities for remarketing, customer experience, inventory management, and more.

In order to thrive along with gaining competitive advantage in an ever-growing digital landscape, merchants need to embrace the power of Artificial Intelligence (AI).


To learn more about the opportunities with AI for eCommerce, while confirming how this technology can propel your business to new heights, we invite you to a conversation with an expert. Get your appointment scheduled by clicking below.

Share This Article

Book your free appointment with an AI Expert

The game has changed

How companies need to play in order to win the war for telent

The game has changed cover

Request Whitepaper