E-commerce Marketing
The Impact of Artificial Intelligence on Online Shopping Behaviour
Thanks to artificial intelligence, browsing an online store today can feel like walking into a shop curated entirely around one’s personal tastes. The product suggestions that appear seem remarkably accurate, as if anticipating what might be needed next. And the reason behind this experience is the use of artificial intelligence,…
Thanks to artificial intelligence, browsing an online store today can feel like walking into a shop curated entirely around one’s personal tastes. The product suggestions that appear seem remarkably accurate, as if anticipating what might be needed next. And the reason behind this experience is the use of artificial intelligence, such as machine learning algorithms, recommendation engines, and natural language processing, which analyses browsing patterns, past purchases, and user behaviour to deliver highly relevant product recommendations. This AI-driven shift has transformed how products are discovered, making the shopping journey quicker, more intuitive, and helping consumers make choices with greater confidence.
As this shift gains momentum, market projections indicate that the global AI-in-ecommerce sector will reach 8.65 billion dollars by 2025 and nearly double to 17.1 billion dollars by 2030. This growth highlights the importance for businesses to integrate AI-driven eCommerce solutions that create seamless and personalised shopping experiences. To better understand how AI is influencing the entire shopping experience, here are some key developments shaping shopping behaviour:
Voice assistant transaction values were expected to grow by over 320%, indicating a clear shift in how people prefer to shop, moving from screens to spoken commands. As consumers look for quicker and easier ways to buy, this hands-free method is gaining popularity. By simply speaking to a voice assistant like smart speakers or mobile devices, shoppers can effortlessly add products to their cart, reorder their favourite items, or check prices. One of the brands that has implemented this is Domino’s, which has integrated voice technology to enable customers to place and customise pizza orders through Alexa or Google Assistant, making the entire process quicker and more intuitive.
Visual and Voice are the New Search Bars
Visual search is changing how people shop online. Instead of typing long descriptions, users can simply upload a photo to find exact or similar items in seconds. Many businesses have embraced this technology, and one example is ASOS, a leading global fashion retailer known for its trend-focused collections. ASOS lets customers upload images directly through their app, turning any outfit spotted on the street or social media into a seamless shopping experience, making style discovery quicker and more intuitive.
Voice assistant transaction values were expected to grow by over 320%, indicating a clear shift in how people prefer to shop, moving from screens to spoken commands. As consumers look for quicker and easier ways to buy, this hands-free method is gaining popularity. By simply speaking to a voice assistant like smart speakers or mobile devices, shoppers can effortlessly add products to their cart, reorder their favourite items, or check prices. One of the brands that has implemented this is Domino’s, which has integrated voice technology to enable customers to place and customise pizza orders through Alexa or Google Assistant, making the entire process quicker and more intuitive.
Pricing and Stock That Respond in Real Time
Alongside improvements in product search and purchase, AI in retail has transformed pricing and inventory management, enhancing responsiveness and operational efficiency. Prices are no longer fixed; instead, they adjust dynamically based on factors such as demand fluctuations, stock levels, competitor pricing, and customer behaviour. For instance, Airbnb uses AI to help hosts set optimal prices by analysing local events, seasonal trends, and market conditions. This approach ensures guests receive competitive rates while hosts can maximise their earnings. Simultaneously, AI-driven inventory management systems work quietly behind the scenes to maintain optimal stock levels by closely monitoring and predicting customer demand. For instance, brands like Zara apply advanced analytics that incorporate data such as past sales, current purchasing patterns, weather forecasts, and social media trends to accurately anticipate demand. This enables them to keep popular items in stock without the risk of overstocking.Bring the Store Home with Augmented Reality
One of the biggest challenges in online shopping is the inability to experience products firsthand. Augmented reality is overcoming this limitation by enabling customers to visualise items within their own space before committing to a purchase. By using a smartphone or tablet camera, AR overlays digital images of products onto real-world surroundings, allowing shoppers to see how an item’s size, colour, and design fit into their environment in real time. Among the brands leading this innovation, IKEA stands out with its Place app, which lets users see how furniture fits and complements their home using just their phone camera. Building on the personalised experience created by augmented reality, AI-powered recommendation systems further enhance online shopping by analysing individual preferences to suggest products that align with customers’ tastes. Stitch Fix combines stylist expertise with machine learning to provide clothing suggestions based on past purchases, customer feedback, and preferences. These personalised recommendations cut down browsing time and create a more relevant and enjoyable shopping experience.
