Free Essay on Artificial Intelligence in E-Commerce

Published: 2022-02-14 17:17:31
Free Essay on Artificial Intelligence in E-Commerce
Type of paper:  Research paper
Categories: Computer science Artificial intelligence
Pages: 4
Wordcount: 930 words
8 min read

Artificial intelligence is computer systems that can perform activities on their own without the involvement of the human hand. Computer systems have intellectual characteristics like that of human beings. The systems can reason and make meaningful decisions that humans would face challenges to make. An E-commerce, on the other hand, e-commerce entails making transactions on online platforms. Artificial intelligence is increasingly being embraced in e-commerce for various reasons in the technology world transforms. Artificial intelligence facilitates e-commerce in various ways as opposed to the time when companies didn't incorporate artificial intelligence into their systems.

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Companies that engage in e-commerce, such as Amazon, are embracing artificial intelligence to develop algorithms that enable the company to understand consumer trends (Team Express Analytics, 2019). The companies require data to understand the needs of the customer and consumer trends that will facilitate marketing. The algorithms used in artificial intelligence can interpret vast amounts of information and create patterns that explain the behavior of consumers. The data facilitate planning by companies on goods that they need to stock. Many companies have been falling in the past because of the lack of data on the things that people love.

The algorithms pick the keywords on what the customers are looking for, and the companies make informed decisions (Team Express Analytics, 2019). Artificial intelligence can pick the right and relevant information that companies need. Artificial intelligence enables the company to recommend the products that the customer might want, depending on what the customer is looking for. The suggestions allow the companies in e-commerce to trade more because artificial intelligence help customers get alternatives based on their search. Trends are identified, and appropriate measures are taken to meet the demand.

Artificial intelligence also helps in performing complex activities that are challenging to complete using the human hand. There are millions of customers accessing the online platform at a go there; its not possible to reply to all the requests (Team EA., 2019). Artificial intelligence has made work easier in terms of facilitating e-commerce. The growth of artificial intelligence has facilitated e-commerce, where many activities can be done at the same time. More technologies have been advanced to incorporate artificial intelligence in all aspects of the e-commerce

Artificial intelligence stores the preferences of the customers based on the history of the customer; this is used as a marketing tool by companies because they can show the customers what they like increasing their likelihood of purchasing the products (Team EA., 2019). Online stress does not market themselves on traditional media; hence, they use artificial intelligence to increase their sales. The AI can collect information regarding customers and predict what the customers might want to purchase. The artificial intelligence can keep track of the customer purchase and predict the next likely purchase.

One of the most important aspects of artificial intelligence is that it collects data from customers and facilitate the analysis of huge amounts of information regarding the behavior of customers (Team Express Analytics, 2019). E-commerce requires retailers to have information on the wishes of the customers because the customers are more informed about what they want. The data is analyzed, and the conclusion made on what the customer wants. This helps in marketing based on what customers want. Artificial intelligence help in giving the customers real-time feedback when they want it. It helps in good customer service, which in terms results in more sales.

Artificial intelligence has an impact on the retailers as it helps them decide on what to buy and stock in their outlets. The retailers have made use of the web through which they study customer behavior (The Retailer's Story, 2019). The impact of artificial intelligence is greatly felt in e-commerce since retail is an industry that is data sufficient. Artificial intelligence has impacted retail through pricing, which is a key consideration in e-commerce where competition is stiff. The retailers have been facing a challenge of running out of stock or overstocking. Overstocking is a nightmare for many retailers because it means that they have to incur extra costs for inventory expenses, rentals, and fear of a commodity perishing while in stock. Artificial intelligence technology helps in managing inventory by identifying key factors that influence the velocity of the orders. The artificial intelligence helps the retailers to identify the products that are fast-moving and ensure that they are always on stock.

E-commerce is different from traditional commerce in terms of the character of the customer; artificial intelligence facilitates keeping track of customer preference (The Retailer's Story, 2019). Whenever the customers visit a particular platform to purchase products, they want their history saved for the next purchase. Artificial intelligence facilitates in keeping history. Customers that make purchases frequently can keep track of their expenditure. The purchases are personalized to their needs.

The other aspect of artificial intelligence in marketing is that it facilitates the visual search to keeping the shopping personalized to the customer (The Retailer's Story, 2019). It identifies keywords used in searching and provides alternatives that the customer might wish to purchase. The shopping is personalized according to the trend and search that the customer makes. More people are beginning to embrace online shopping because of the convenience that it provides.


Team EA. (2019). Artificial intelligence: Artificial intelligence is changing the face of online shopping. Retrieved 2 November 2019, from

Team Express Analytics. (2019). How Artificial Intelligence has influenced e-commerce - the customer's story -. Retrieved 2 November 2019, from

The Retailer's Story. (2019). How Artificial Intelligence has influenced e-commerce - the retailer's story -. Retrieved 2 November 2019, from

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