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Applying Artificial Intelligence (AI) in E-commerce

Where can you actually put AI to work in e-commerce? Discover 9 ready-to-use applications of artificial intelligence - from product recommendations, through cross-selling, to bestsellers and promotions - that drive sales.

Persooa Editorial

Persooa Editorial

June 6, 2023 3 min read

Here are some ideas for applying artificial intelligence (AI) in e-commerce, where you can use data and AI to increase revenue. Use AI to generate messages and product recommendations that will improve not only your customers' shopping experience but also your bottom line.

1. Using artificial intelligence to suggest interesting products

This section uses artificial intelligence to display products similar to those the user browsed earlier. Make skillful use of this opportunity, for example by offering a discount or promotional coupon to people who buy more than one item. Such a message creates motivation to add another product to the cart, while the AI recommendation offers ready-made ideas.

2. Displaying recommendations based on recently viewed products with AI

This section uses users' browsing history to display recently viewed products. You can use this automation to remind users of what interested them earlier and encourage them to convert by offering a promotion to people recognized as returning to the site.

Use phrases that emphasize you care about your customers' positive shopping experience:

  • "Return to your favorite products"
  • "Come back to the products that caught your eye!"

3. Applying AI in recommendations based on purchase history

This section uses AI to display products consistent with the user's earlier purchases. Here again you can use a promotional mechanism, rewarding customers with a promotion or discount when they buy more than one product. You can recommend a complementary product or a competing one that has a more profitable margin.

In your promotional slogans, be sure to emphasize the element of personalization and the ease of using your e-commerce.

  • "We match products to your taste!"
  • "Don't miss out on new offers for loyal customers!"

This section uses the principle of combined purchases, known as cross-selling, to encourage users to buy additional products. The moment when a customer is already convinced to buy and ready to spend money is the perfect time to recommend something more. Ideally a complementary product that adds new features and makes the customer even more satisfied with the item they're purchasing.

If it aligns with your discount policy, you can motivate the customer further by offering a financial benefit.

5. Using AI to present favorite products

This section uses the list of products a user has added to favorites in order to display them in one place. These are not random products. They are special because you can assume the customer is very likely considering buying them - perhaps they postponed the transaction for later and will return to the store.

6. Applying artificial intelligence in bestseller selection

This section displays the store's best-selling products. In this case, the mechanism known as social proof is at work - a powerful psychological tool that is very easy to translate into the world of e-commerce.

7. Using AI to promote new arrivals

This section displays the newest products in the store. You can use it, for example, to promote a recently introduced assortment. New products don't always become sales hits right away.

8. Applying artificial intelligence to display promotions

This section displays products that are on promotion or on sale. A price reduction is always a very concrete argument for buying a product you'd been watching but that seemed too expensive.

9. Selecting similar products with AI

This section uses artificial intelligence (AI) to display products similar to the one the user is currently browsing. You can show a potential customer your broad offer and present other products from the same price range or better ones, trying to nudge them toward a more expensive purchase.

Use messages that emphasize the personalization of the products presented and build users' curiosity:

  • "See what else might interest you!"
  • "Products matched for you to complete your cart!"
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