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artificial intelligence in retail market
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AI in Retail Market: The Journey From Demand Generation To Demand Capture

Sanjay Kidecha,

The futuristic-sounding technology is now here. Organizations have started adopting AI in retail market to provide the simplest user experience after realizing it’s not an optional tool in our tech-crazed environment. In 2020, we saw that 85% of the customer interaction with a company was managed without a human being involved. The advancement of A.I. technology is altering how we interact with the outside world, from virtual reality (V.R.) gaming systems to A.I. robots in industrial manufacturing. Although the internet gives customers access to previously unheard-of information and choices, the proliferation of options and price matching make it more difficult for businesses to convert customers. With AI, businesses can gain algorithms to learn more about the needs and wants of their customers.

But in the eCommerce industry, it’s less about human-like robotics and more about the foundational learning technologies and algorithms.

Using gathered customer and business data by artificial intelligence (A.I.) can assist today’s online retailers in providing an optimized customer experience on and off their eCommerce websites.

How AI is transforming the eCommerce Industry 

Artificial intelligence in online shopping revolutionizes eCommerce by forecasting consumer behavior based on the goods and times they purchase. This is a one-product-to-one-shopper approach. The AI engine can proactively anticipate what consumers may be interested in next by evaluating more than 300 data points about each user’s behavior habits. For instance, if a consumer lives in cold weather, the ability of AI in retail market can identify the types of sweaters, boots, and pants they’re considering and suggest alternatives with similar use, and materials. It’s like having a personal shop assistant by their side who knows exactly what they want before they even reach the next rack.

This online buying experience is flexible, responding and altering in real-time according to each customer’s requirements. No two consumers will ever have the same experience if done correctly.

Moreover; Artificial intelligence (AI) solutions for eCommerce or AI-enabled digital assistants, like the Google Duplex tool, can make grocery lists using a customer’s natural speech and even place online orders on their behalf.

The development of AI technology over the previous several years has made it a potent tool for increasing sales and streamlining business processes. Even a lot of small eCommerce companies are utilizing AI-capable technologies.

Here are some point-based ways artificial intelligence is transforming eCommerce:

AI Copywriting

AI copywriting is altering the way businesses write their sales copy. Marketing copy can be produced using AI writing technologies in seconds. Brands can now use AI software instead of hiring copywriters or advertising firms. These systems can provide digital advertising text, social media material, and eCommerce copy using cutting-edge AI language models.

Although most AI copywriting still needs manual editing, it is quickly becoming a standard in e-commerce.

Chatbots And Virtual Assistants

Having an employee or assistant to help you find what you’re searching for is one of the advantages of buying in an actual store. While eCommerce has always had customer care services that can provide phone support, it wasn’t until recently that AI started to help bridge the gap and give clients prompt support. eCommerce retailers are increasingly using chatbots and other virtual help to offer all of their online consumers round-the-clock support.


AI is also incredibly adept at giving clients a customized experience through precise product suggestions and advertising. Hence; AI in retail market algorithms will comb through massive databases to uncover helpful information about client behavior, improving their ability to anticipate customers’ particular wants. Artificial Intelligence can assist you in providing your consumers with a more seamless and delightful experience by helping you create localized content tailored to your audience.

Top eCommerce companies using AI

Top eCommerce companies using AI: Learn from the top leaders 

Sephora Makes It Easy to Find Makeup

Enter a Sephora store without applying makeup to your face to determine your ideal cosmetics hue. When choosing foundation and concealer colors, Color IQ analyzes a customer’s face and makes individualized suggestions, while Lip IQ does the same. Trial and error help customers know the hassle of selecting the ideal hue.

Taco Bell Helps Customers Order Tacos On The Go

The first restaurant to provide online meal ordering with AI was Taco Bell. Since it integrates with Slack, customers can easily text or say their order with the Tacobot. Even customized and big group orders are possible with the bot. After every order, the bot replies with witty comments in classic Taco Bell style.

Walmart Deploys Robots To Scan Shelves

One of the biggest retailers in the world, Walmart, intends to employ robots to monitor those long aisles. In dozens of stores, Walmart is testing robots that can scan shelves. The robots search shelves for missing products that need to be restocked or have their price tags adjusted. Thanks to the robots, human personnel can now spend more time interacting with consumers and ensuring there aren’t any empty shelves.

Amazon Eliminates Cashiers With AI

Without going through a cashier, customers may enter the shop, get what they need off the shelves, and leave. Customers’ purchases are tracked by sensors and cameras placed around the store, and their Amazon accounts are paid when they leave. Thanks to AI’s assistance in facilitating a speedy and seamless shopping experience, customers won’t have to wait in line.

H&M Uses AI To Keep Popular Items Stocked

H&M uses AI to examine store receipts and returns to evaluate purchases made at each location. The algorithm enables the retailer to decide which products to advertise and stock more of in specific areas. 

Starbucks Bot Makes It Easy To Order Coffee

With its AI-enabled voice ordering, the coffee industry behemoth makes getting your morning pick-me-up even simpler. Customers may speak with the My Starbucks Barista app to place an order via voice or text. The consumer may avoid the line and pick up their order as soon as they arrive at their neighborhood Starbucks.

artificial intelligence in retail market

Benefits of Using Artificial Intelligence in eCommerce Business

Voice commerce and virtual assistants

Bots known as eCommerce virtual assistants use machine learning and language processing techniques to comprehend consumer inquiries and offer the appropriate help. The well-known AI bots are Google Assistant, Apple’s Siri, and Amazon’s Alexa.

eCommerce businesses prefer virtual assistants since they are available around the clock and have no issue responding to basic consumer questions. Virtual assistants can manage inventories and conduct product research, among other tasks. Virtual assistants provide clients with rapid and simple access to information.

Voice commerce is a technology that allows users to make purchases or do searches using their voices. Due to its quickness and convenience—users don’t have to waste time attempting to enter the right words—users prefer voice commerce.

eCommerce Personalisation

eCommerce Personalization is the process of actively and dynamically displaying content to a consumer during an online transaction depending on that customer’s past purchases, click-throughs, browsing habits, etc.

Personalization is a terrific way to keep customers interested, encourage repeat purchases, and boost conversion rates. As a result of COVID-19, more individuals have been purchasing online in recent years, making individualized experiences even more important.

For quite some time, the quickly expanding world of eCommerce has been advancing to new deep levels of personalization thanks to the ever-improving developments in AI and machine learning technology. Computers can now swiftly process big data, allowing for real-time analytics and optimization.


eCommerce companies can save time, effort, and operational money by automating customer care. AI has shown that it can significantly help businesses online. AI plays a crucial role in assisting eCommerce business owners regarding automation. Workflows at the front-end and back-end are made simpler by automation, which is in charge of carrying out these repetitive tasks.

Everything from displaying new products across channels to coordinating sales, offering discounts to loyal consumers, identifying high-risk transactions, and much more can be automated with AI. Additionally, by offloading the responsibility of responding to regular inquiries, eCommerce business owners are free to focus on more complex demands.

Retargeting Potential Customers

Retargeting strategies are designed to connect with people who have already interacted with your platform.

AI can assist you in determining each user’s unique behavioral patterns. And later, you can use this information to lure these users back to your store. Push notifications are one of the best retargeting techniques. There is no chance of irritating the users because push alerts are brief and to the point. You can also use customized push alerts and provide one-on-one conversations using your collected behavioral data.

Utilizing AI in your retargeting campaigns is extremely useful and cost-effective since retargeting reduces the cost per impression. Additionally, retargeting keeps your brand in front of customers’ minds. Therefore, they will think of you when they need something in the future.

Efficient Sales Process with CRM

 Integrating AI into your CRM will boost your eCommerce sales. You can modify your problem-solving options with AI, produce a potent sales message, and attract more customers. Numerous AI systems, like Siri or Alexa, support voice input and natural language learning. They make it possible for a CRM system to respond to client inquiries by clarifying any questions or problems, resolving issues, and identifying fresh opportunities. Additionally, some AI-driven CRM systems can manage these tasks concurrently, saving company owners time and energy. A CRM solution powered by AI boosts conversion rates by raising customer satisfaction.

AI Use Cases in eCommerce

Use Cases of AI in retail market: How you, too can transform your eCommerce Business

Personalized product recommendations.

Customer data about online buying experiences can be gathered and processed more efficiently than ever. Personalized product suggestions are made using AI based on historical consumer behavior and lookalike customers.

Machine learning is used to examine your purchase history by websites that suggest products you might enjoy based on prior purchases. Retailers rely on machine learning to gather data, analyze it, and apply it to provide a customized experience. This can help them to put a marketing strategy, optimize pricing, and produce consumer insights.

Pricing optimization.

AI-enabled dynamic pricing is a technique for altering your product’s price in response to supply and demand. As a result; today’s systems can forecast when and what to discount based on the correct data, dynamically determining the minimal discount required for sale.

Enhanced customer service.

You can provide the impression of giving higher-touch customer care with chatbot and virtual assistant technologies. Although these bots aren’t entirely self-sufficient, they can help with simple transactions so that human support personnel can concentrate on more complicated problems.

Additionally, virtual agents are accessible around the clock, allowing for quick resolution of minor difficulties and concerns at any time.

Customer segmentation.

eCommerce companies can now better understand their consumers and spot emerging trends, thanks to increased access to company and customer data and computing capacity.

In an Accenture insight, they state, “Rapidly examining a wide range of complicated consumer engagement alternatives, and AI systems may continually improve their performance as new data becomes available. To reach accuracy, marketers may define criteria and let artificial intelligence (AI) learn and optimize.”

Smart logistics.

Smart logistics, also known as intelligent logistics, focuses on leveraging real-time data from sensors, RFID tags, and other devices to manage inventories and more accurately predict demand. Machine learning systems improve over time to provide better forecasts for their supply chain and logistics tasks.

How to Implement Artificial Intelligence Into eCommerce 

It’s always enticing to adopt the cutting-edge technology. To avoid wasting a lot of time and money on failed attempts, you should have a plan before launching a new program.

Create a strategy.

You must begin somewhere, and your strategy will outline the steps you will follow to get from that point to your AI objective. Don’t just pass this on to your CIO, CTO, or a freshly hired AI specialist.

Think carefully about what you want to accomplish with AI. Take a practical approach, and don’t forget to start small. Later on, you may continually expand.

Look for specific use cases that are relevant to the overarching business goal.

The most effective AI use cases come together when business goals, data specialization, and easily accessible artificial intelligence models come together. To sum up, you should concentrate on revenue-generating possibilities that use data advantages and context-appropriate AI technologies.

Leverage third-party expertise.

Even if you do not consider yourself an AI in retail market expert, you should accept professional help with this. Hire the best team on a project- or part-time basis to dig in and assist you in creating a comprehensive AI roadmap. Your MVP can also be developed with the assistance of those other parties.

Build a full-scale solution.

It’s time to construct a comprehensive solution after you’re satisfied with what your team has created. Be prepared if it still requires some reattempts before performing as you anticipate. 

Start your AI in retail market journey with Kody Technolab.

eCommerce has significantly transformed due to AI and machine learning technology, and this transition will only continue. Thanks to AI, an eCommerce company can evaluate the massive amounts of data it receives every second without breaking a sweat. Hence; the necessity for this type of technology in eCommerce will only increase over time.

To assist you with implementing intelligent AI-driven solutions for your retail business while simultaneously handling all of your issues, Kody Technolab offers a highly-experienced team of specialists.

So use the power of personalization to put your eCommerce store ahead of the competition. Schedule a demo to find out more about what Kody’s customized solutions can achieve for you.

Sanjay Kidecha

Sanjay Kidecha is the Chief Finance Officer at Kody Technolab and a Fintech geek. With one foot in finance and the other in tech, Sanjay likes to write on emerging Fintech trends, ideas, and how-to guides to keep industry leaders updated with the ever-changing world of fintech!

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