AI and Augmented Reality: Transforming the Online Shopping Experience

Ecommerce has undergone significant enhancement as it passes through stages of development. It has brought changes to how people shop, as people can now buy products at their convenience without physically visiting stores and buildings.

In 2022, Statista conducted a survey to identify the usage of AR. It was found that one third of the population from the age group of 18-35 years used AR at least once for their household purchases. For instance, while buying some furniture, getting a full 360-degree view to understand the placement better.

However, with AI and augmented reality integrated into the business models of eCommerce frameworks, the future is even brighter and more customer oriented.

AI in Ecommerce Use Cases


There are various AI in eCommerce use cases. Let’s explore them:

Personalized Recommendations

AI plays an active role in ensuring that consumers receive personalized recommendations while shopping online. Customer recommendation is where AI systems can be beneficial like scanning customer’s history and activities, browsing history and previous purchases. AI algorithms can recommend products that may interest the customer.

Improved Customer Service

The use of AI in dealing with customer service involves AI-driven customer services like chatbots, and virtual assistants to give customer support, quick customer response, and some instant solutions to customer inquiries. They perform specific recurrent tasks to allow human agents to deal with more challenging situations. This results in an overall improved experience in shopping for consumer products.

According to Juniper Research, the global retail spend on chatbots reached $12 billion per annum by 2023, and it will rise to $72 billion per annum by 2028.

Biz4Group, as a software development company, can provide chatbot development services to help your eCommerce business with improved customer experience on your website or app.

AI-Driven Analytics

AI enables data processing in large volumes thus helping in identifying buying patterns, trends to be expected, and coming up with well-informed decisions. It can enhance the ways of stock control, strive to minimize waste, and head the strategies of product pricing, including dynamic pricing.

Dynamic price computing refers to the ability of AI to change prices at will be based on different factors such as demand, competition, and many other factors hence setting prices at the optimal level that will yield the most and the best profit.

For instance, AI can identify specific products that are likely to be in high demand during specific seasons or periods and advise retailers to order in bulk to avoid lacking stock or having excess unsold stock.

AI in Search Optimization

Ecommerce search can be made better with AI's capability of understanding user intent. LLMs like GPT-4 solve the problem of text-based searches, due to their ability of understanding complex human languages. For instance, through AI, customers can post pictures of the products that they prefer, and the search engine identifies similar products that are listed on the platform. This feature is helpful for customers as they can easily find what they are looking for, resulting in high customer satisfaction and conversion rates.


Augmented Reality in Ecommerce Use Cases

There are multiple use cases of AR in online shopping. Let’s explore them:

Interactive Product Visualization

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AR helps in enhancing the customer experience, especially during the purchase of products as it helps users to see the real size and position of the product in their environment. This is particularly valuable for furniture and homewares due to the means used to represent them.

Consumers can utilize their mobile phones or AR gadgets to point to a virtual version of a product in their location to assess the appearance of the product and how it fits. For instance, using AR applications one can show clients how a new sofa will fit in their living room, hence increasing their self-confidence while making decisions and decreasing the number of people who tend to return their purchases.

Ecommerce businesses like Ikea, Nike, Asos, Sephora and many more are using AR to enhance customer experience and productivity.

Immersive Shopping Experiences

AR creates a shopping experience since customers must engage with products more interactively online. Emerging formats like virtual stores and showrooms enhance consumer activity to the next level.

For example, Nike uses AR to give an immersive experience to its clients, by providing 360-degree AR view of its products.

In the case of VR and AR applications, a 360-degree window presentation of the store content is achievable and enables customers to view products as they would be when physically present. This is not only innovative in engaging customers but also offers consumers an opportunity for a specialized shopping experience that may set specific brands apart from other related brands.

AR in Marketing Campaigns

The augmented reality technology also is remodeling the marketing campaigns to be much more interactive. Brands are employing a new perspective to make engaging adverts that make the customers focus through the application of augmented reality. For instance, an application related to advertisement enables users to play with the product in some kind of innovative and engaging manner.

Many big brands have started using CGI (Computer-Generated Imagery) advertising. Maybelline, a beauty brand, uses CGI for its products to present them in a more dynamic and engaging manner.

Impact on Retailers and Customers

AI and augmented reality have a massive impact on retailers and customers. Let’s understand them:

Benefits to Retailers

AI and augmented reality technologies represent great benefits to retailers where they get high Return on Investment by enhanced sales and better inventory control. Automated suggestions and augmented reality campaigns help optimize purchases and guarantee higher sales.

Benefits to Customers

AI and augmented reality equally bring benefits to customers in terms of internet shopping. These technologies enhance the retailers’ ability to deliver shoppers and shopping experiences. To illustrate, a virtual assistant gives customers quick access to the support service they need, AI, and AR enable customers to make their purchases without the likelihood of regretting their decisions soon.

Biz4Group, a software development company, can build an enterprise eCommerce platform to increase user’s engagement, accessibility and scalability.

Customer Behavior Insights

AI studies every data it can access, including browsing history, the items customers have been buying, and their social media activity, among others, in its endeavor to predict what these customers want. This information enables retailers to fine-tune their communication messages and selling efforts throughout fulfilling customers’ needs. For instance, AI can know patterns or trends of customers who may not be obvious to the naked eye thus helping the retailers to be ahead of their competitors.

Biz4Group, as an AI development company, can build an ai inventory managment software for you, which can help in improving inventory management for your company.


How Does AI Help Augmented Reality

AI in augmented reality transforms online experience, by making it more immersed, user-friendly, and faster. Here's how augmented reality with AI work together to transform various applications:

Enhanced Object Recognition and Tracking

AI aids in advancing the capabilities of AR in object recognition and tracking. With machine learning algorithms, AR systems can easily detect and track objects, and the accuracy of tracking in real-time is greater. This enables AR applications to place digital content over physical objects at the same proportions. For instance, applications such as AR can employ the use of AI and identify various kinds of furniture and position proxies perfectly in a user’s living room in the right proportions and interactivity.

The software solutions provided by Biz4Group can be useful for the eCommerce store development of your business, to make it more accessible and popular among users.

Biz4Group created a project, Powder Watts, a smart IoT based smart energy management solution which controls and monitors energy consumption in business and households. It helps customers to reduce their energy bills.

Personalized AR Experiences

AI-based augmented reality shopping application can facilitate product recommendations from past purchases and shopper interests for a more relevant shopping experience. This level of personalization makes it easier to engage the customers, and therefore, an organization can experience high levels of customer satisfaction.

Biz4Group, as an AI development company, can provide custom eCommerce solutions, which will enhance the AR experience including the scalability and accessibility of your business.

Enhanced Visual Quality

AI enhances the overall quality of displayed AR content mainly by using image processing libraries. Through using machine learning figures, object definition in virtual space can be improved to realism. Lighting and shading in AR have also been improved to match that of real environments, thus providing a better experience in virtual reality.

Biz4Group, as an AI development company , can build AI-based websites and applications for your business, by saving a long-run cost for the company and enhancing the visual quality.



This integration of AI and augmented reality has not only positive effects on the sales and inventory for the retailers but also enhances customer satisfaction and thereby the confidence level with the product they are buying. These are acceptable innovations by consumers that retailers need to adapt to remain relevant in the market and fulfill the needs of the connected customers.

Meet the Author


Sanjeev Verma

Sanjeev Verma, the CEO of Biz4Group LLC, is a visionary leader passionate about leveraging technology for societal betterment. With a human-centric approach, he pioneers innovative solutions, transforming businesses through AI Development, IoT Development, eCommerce Development, and digital transformation. Sanjeev fosters a culture of growth, driving Biz4Group's mission toward technological excellence. He’s been a featured author on IBM and TechTarget.

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