Create Future of Shopping with Generative AI in eCommerce

Before exploring the future of shopping with generative AI, let’s delve into the current statistics of how AI is contributing to eCommerce business on a larger scale.

  • As per a report by The UK eCommerce Association, there are 74.7% of consumers who prefer brands that offer personalized experience.
  • One of the Salesforce reports show that 69% of buyers prefer using AI for enhancing their shopping experiences.
  • Again, as per a study by Forbes, for the sake of innovation, there are 78% of eCommerce brands who have either started exploring AI or plan to do so in their business.

Here, in this blog post we’ll explore everything you need to know regarding the role of Generative AI in eCommerce- its applications, benefits, real-life implications, and case study of Biz4Group, a generative AI development company.


What is Generative AI?

Generative AI is a subset of machine learning, which is capable of creating new content. The content can be in the form of text, images, videos, and other data types. It learns patterns from existing data, that focuses on generating new data samples, which resemble real-world data.

But, how do generative AI models identify patterns to create new content?

Basically, these models use neural networks to identify patterns and create new content accordingly.

Some popular examples include ChatGPT for text generation, and DALL-E for image creation.


Applications of Generative AI in eCommerce

Let’s delve into the applications of Generative AI in enterprise eCommerce platform:


1. Personalized Product Recommendation

Let’s understand the role of AI in personalizing product recommendation with the help of a real-life example. In 2021, 35% of consumer purchases took place through AI-driven product recommendations. It was possible through Amazon’s generative AI algorithms, that analyze vast amount of buyer data, and deliver personalized product recommendation.

AI continuously learns and adapts to evolving consumer preferences, and thus enhances shopping experience by analyzing customer behavior, purchase history, and preferences to recommend customized products.

2. Content Creation

One of the best examples of content creation through generative AI is Alibaba’s AI-powered copywriting tool. It creates blog posts, marketing copy, and product descriptions of existing listings. Not only this, the content generated through AI is also SEO-optimized which saves time and resources both.

3. Visual Content Generation

ASOS shows virtual catwalks of customers, providing them personalized styling offers, with the help of generative AI. It is done by analyzing the customer’s body shape, and outfits suggestions are provided accordingly. Such technology captures customers’ attention, and enhances brand image. Hence, it results in higher engagement, and improved conversion rates.

Overall, generative AI creates high-quality images, and videos for product listings, advertisements, and social media.

4. Dynamic Pricing

One of the suitable examples of dynamic pricing fits best for Uber, as a generative AI in eCommerce application. This AI application adjusts fares, based on real-time demand and supply. Due to this robust feature, the same model is used by multiple eCommerce platforms, to optimize price strategies.

Hence, generative AI can analyze market trends, competitor pricing, and customer behavior to optimize price strategies.

Also Read: AI and Augmented Reality: Transforming the Online Shopping Experience

Benefits of Generative AI in eCommerce

Having familiar with the applications and real-life implications of AI custom ecommerce solutions, let’s understand the benefits of generative AI for ecommerce platforms in detail:


1. Improved Customer Lifetime Value

A customer’s lifetime value depends on higher conversion rates. Again, conversion rates depend on customer’s satisfaction level, wherein the latter is directly proportional to customer’s engagement level with brand’s product or service.

Generative AI provides this engagement by providing personalized experiences, throughout a customer journey. Moreover, it provides tailored recommendations, real-time assistance, and interactive product exploration.

2. Sorted Inventory Management

Generative AI provides sorted inventory management. But, how? AI-powered systems can predict demand, and manage supply chains. Not only this, but AI also automates redundant tasks, and handles customer inquiries at scale. This increases cost savings, fastens response times, and benefits overall business performance.

3. Exploration of Untapped Market Opportunities

Generative AI is capable of generating unique designs, creating virtual try-on experiences, and predicting future trends. Moreover, AI can facilitate the creation of novel products, and services, by enabling new features and business models. Hence, AI leads to constant innovation, by attracting new customers, and digging into untapped market opportunities.

4. Enhanced Scalability with Least Increase in Resources

Since generative AI can handle large volumes of data, transactions, and customer interactions, without much increases in resources, therefore it allows businesses to expand rapidly, without compromising on quality and customer experience. Besides, such AI systems can also adapt to fluctuating demand, and support business growth for diverse markets.

Also Read: Tips to Optimize AI Voice Search for eCommerce – Insight by Biz4Group AI Experts

Future of Generative AI in eCommerce

Knowing the present scenario of generative AI is just not enough to start business in eCommerce using AI, but future possibilities also need to be familiar for a successful business to happen.

1. Emerging Trends

As an emerging trend, shoppers are expected to take interest in understanding and responding to natural language queries, custom chatbot development for example LLMs like GPT-4. This as a result will improve precise onsite search, that is also user-friendly, hence directing customers to the perfect products.

Additionally, adoption of chatbots and conversational AI are more likely to rise, which would provide real-time assistance to shoppers. This type of experience would be like the in-store interactions that customers have with store staff.

Moreover, AI-driven predictive analytics are going to pick up more, due to better demand forecasting, supply chain optimization, and inventory management.

2. Long-Term Impact

Various operational processes are going to be automated by AI, through AI development services, from inventory management to customer service. This, as a result would bring down the operational cost, reduce human error, and improve business scalability. Hence, business would be able to take more informed decisions.

Additionally, companies that are leveraging generative AI in their eCommerce business, would also gain a competitive edge, and stay ahead of market trends. Hence, companies would be able to enable new products, and services.


Case Study – How Biz4Group Excelled in Developing Generative AI Application in eCommerce?

Our team at Biz4Group has excelled in delivering a robust generative AI application in health eCommerce. Let me skim you through what the product is all about, challenges it faced, and the solution provided by us.

The generative AI in eCommerce application provides Avatar-based consultation to patients, and prescribes medicines as per the ailment, relevant to the patient. Its smart chatbot provides personalized health advice and tailored solutions to patients.

Users can also upload their medical reports for a more tailored solution. Users can also speak to Avatar to have a real-like conversation, as done with a doctor.

Here is our client’s valuable feedback on the AI-driven application development:

“Exceptional AI Avatar and chatbot development team; their flexibility and proactive communication made our vision a reality. Highly recommended!"

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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