Use of Artificial Intelligence in Ecommerce

Atif M.
6 min readSep 13, 2021

Amazon has long realized the advantages of AI and related technologies. The behemoth e-commerce company employs ML to improve product selection and user experience and to optimize logistics.

What is Artificial Intelligence?

In a nutshell, artificial intelligence (AI) is a technology that is meant to imitate human psychology and intelligence. It is a computer science field focused on creating machines that seem like they possess human intelligence. We call these machines’ intelligence “artificial” because humans create it, and it does not exist naturally.

Machine learning (ML) is a popular subset of AI. ML algorithms are computer-implementable instructions. They take data as input and perform computations to discover patterns within that data and use those patterns to predict the future.

An ML model improves its performance over time as it encounters more and more data and self-corrects on making mistakes to reduce the chance of repeating them in the future. ML is mostly used in systems that capture huge volumes of data.

A recent publication from Mc Kinsey & Company and the Retail Industry Leaders Association named 7 essentials for rethinking retail in 2021, and each could in some way be bolstered by some type of AI-informed technology.

1. More targeted marketing and advertising.

According to the surveyed retailers, personalization is a top priority. However, only 15% feel they have fully implemented personalization across channels. Stand out from the crowd with a more personalized message and have one-to-one conversations with your customers.

Improvements in AI and ML have allowed deep personalization techniques to customize content by the user. You can analyze big data from purchase histories and other customer interactions to zero in what your customers really want and deliver the message that will resonate the most.

2. Increased customer retention.

Delivering targeted marketing and advertising messages personalized for customers can boost retention. McKinsey's omnichannel personalization research reveals that there is a 10 to 15 percent uplift potential in revenue and retention from omnichannel…



Atif M.

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