How Is AI Reshaping the Way We Do eCommerce?

When you think of artificial intelligence, your mind might wander to humanoid robots from sci-fi movies or complex algorithms solving unsolvable problems. But in the world of ecommerce, AI isn’t about far-off fantasies—it’s about the here and now, reshaping how businesses operate and customers shop. From predicting what customers want before they even know it, to optimizing supply chains with pinpoint precision, AI is quietly becoming the hero of online retail.

Global AI in retail market is experiencing significant growth. According to Grand View Research, it was valued at approximately $11.61 billion in 2024, and is projected to reach $40.74 billion by 2030, expanding at a compound annual growth rate (CAGR) of 23.0% during the forecast period.

Implementing AI-driven strategies has led to measurable gains for companies. A study by McKinsey & Company indicates that AI could potentially increase global corporate profits by $2.6 trillion to $4.4 trillion annually.

In ecommerce, AI addresses critical business challenges. For instance, shopping cart abandonment remains a significant challenge, with recent data indicating that approximately 73.94% of online shoppers leave without completing their purchases. AI-powered ecommerce tools, such as personalized recommendations and dynamic pricing algorithms, can mitigate these challenges, improving conversion rates and customer retention.

Beyond customer-facing features, AI enhances backend operations by enabling businesses to forecast demand, manage inventory efficiently, and automate routine processes, thereby freeing up resources for strategic growth. For example, AI-driven inventory management systems can reduce stock errors, leading to significant cost savings.

This article explores how AI is revolutionizing the ecommerce industry. From practical applications and use cases to addressing implementation challenges and future trends, this guide provides business leaders with the insights needed to harness AI effectively.

1. HOW BIG IS THE AI INDUSTRY? LATEST STATISTICS AND TRENDS 
2. THE BUSINESS VALUE OF AI IN ECOMMERCE
3. BACKEND EFFICIENCY: OPTIMIZING OPERATIONS
4. OVERCOMING CHALLENGES: RISKS AND SOLUTIONS FOR AI IMPLEMENTATION
5. WHAT IS THE FUTURE OF AI IN ECOMMERCE?

As of 2025, the global artificial intelligence in ecommerce market is experiencing substantial expansion. This impressive growth is driven by the increasing adoption of AI technologies such as machine learning, natural language processing, and computer vision.

Several prominent companies are at the forefront of AI integration:

Amazon: Utilizes AI to help employees flag defective products before they ship, with Amazon saying its AI system is three times more effective than manually identifying damaged products at its fulfilment centers.

Alibaba: Have you ever wondered what is the best AI chatbot for ecommerce? Well, Alibaba employs AI through chatbots and virtual assistants to handle customer inquiries and uses image recognition for a great shopping experience. Also, its recommendation engines use AI algorithms to analyze a visitor's browsing and purchase histories to offer and highlight products they are more likely to purchase. Moreover, it implements dynamic pricing that can easily adjust prices based on demand and customer preferences without any human assistance.

eBay: The company uses over two decades of data and customer insights to train its algorithms and make its AI smarter. Each time a user interacts with their marketplace, their AI learns and provides feedback so eBay can create a better experience.

Starbucks: AI personalizes orders by remembering customers’ favorite drinks and predicts busy times so the drink is ready when you arrive. So, whether browsing on the phone, checking things out in-store, or finishing up the purchase online, it all works together perfectly to give customers the best experience.

Analyst firms provide insights into the maturity and adoption of AI technologies. Gartner's Hype Cycle for Artificial Intelligence, 2023, highlights innovations such as generative AI and decision intelligence, which are expected to reach mainstream adoption within two to five years. Early adoption of these technologies can lead to significant competitive advantages and can facilitate the integration of AI models into business processes.

And in the 2024 Hype Cycle, Gartner emphasizes the importance of AI engineering and knowledge graphs. In ecommerce, artificial intelligence engineering supports the integration of advanced personalization tools and efficient customer service systems at scale, while knowledge graphs can provide a structured understanding of customer preferences, product relationships, and buying behaviors.

According to McKinsey’s The State of AI 2024 report, 65 percent of respondents now indicate their organizations are regularly using gen AI—nearly double the figure reported just ten months prior. Expectations for its impact remain high, with three-quarters of respondents predicting that gen AI will bring significant or disruptive changes to their industries in the coming years. In most industries, organizations are about equally likely to invest more than 5 percent of their digital budgets in generative AI and analytical AI.

Furthermore, according to IDC's Worldwide AI and Generative AI Spending Guide, global investment in AI technologies is projected to grow significantly, with spending expected to reach over $630 billion by 2028. Generative AI, a subset of this broader AI ecosystem, accounts for 17.2% of global AI spending today. Its growth is particularly remarkable, with projections indicating it will make up 32% of AI investments by 2028, driven by a staggering 60% five-year CAGR.

The AI industry within ecommerce is not just growing—it’s accelerating at an unprecedented pace. Businesses that embrace these technologies are not only staying competitive but are also positioning themselves for significant economic gains in the years to come.

Artificial intelligence is transforming ecommerce by addressing long-standing challenges and uncovering new opportunities for growth. Its dual impact on storefront operations and backend processes makes it indispensable for businesses seeking to stay competitive.

AI-powered personalization has redefined how ecommerce interacts with customers. Algorithms analyze vast amounts of data, including browsing history, purchase patterns, and preferences, to deliver highly relevant product recommendations. For example, Amazon’s recommendation engine drives 35% of the company’s sales, showcasing how effective personalization can be.

Sephora’s chatbot, for instance, assists customers in finding the right products, scheduling consultations, and providing personalized recommendations, significantly improving customer engagement.

Dynamic pricing algorithms enable businesses to adjust prices in real time based on factors such as demand and competitor pricing. Implementing AI-driven dynamic pricing can lead to revenue increases of 2% to 5% and margin improvements of 5% to 10%. McKinsey emphasizes that such strategies are crucial for maintaining competitiveness and boosting profitability in the retail sector.

AI enhances product discovery through features like image-based search, enabling customers to find products using photos. For instance, eBay utilizes AI-powered image search to improve user experience and engagement.

AI facilitates cross-border transactions by providing accurate translations and localization. eBay’s machine translation is used as a tool to process multiple languages when buyers shop internationally. A study conducted by Brynjolfsson, Hui, and Liu, which investigates the effect of eBay's AI-based machine translation tool on international trade, has shown that the system helped achieve a 17.5% increase in exports.

AI-driven demand forecasting helps retailers maintain optimal inventory levels by predicting future sales based on historical data and market trends. Shopify store owners can leverage AI tools to facilitate inventory management.

AI automates customer segmentation, reducing manual errors and improving efficiency. By analyzing customer behavior, AI can segment customers for targeted marketing, boosting conversion rates.

AI-powered analytics provide real-time insights into customer behavior and market trends, enabling data-driven decision-making. Tools like Google Analytics, for instance, incorporate predictive metrics to help businesses anticipate customer actions and optimize strategies.

AI improves security in ecommerce by detecting and preventing fraudulent activities. For instance, PayPal employs machine learning algorithms to analyze transactions in real-time, identifying patterns indicative of fraud and ensuring secure payments for users.

AI optimizes logistics by improving delivery routes, managing warehouse operations, and predicting demand surges. DHL employs AI-driven computer vision to automate inventory counts and optimize supply chain efficiency, leading to reduced delivery times and operational costs. Additionally, AI-powered predictive analytics enable DHL to anticipate consumer behavior, adjust shipping patterns, and optimize routes and loads, further enhancing efficiency in the last mile of delivery.

Implementing AI in ecommerce operations is a journey packed with challenges, but with the right approach, businesses can turn potential pitfalls into opportunities. At the B2B Online Europe conference in Düsseldorf, a session featuring experts from Virto Commerce and HEINEKEN highlighted a fundamental truth: knowing your customers deeply is the bedrock of any successful AI strategy.

John Kelly, Global Director of E-Business at HEINEKEN, and Jim McGregor, Head of Change Enablement, shared their real-world insights during the panel. Their message was clear: without trust, even the most sophisticated AI solutions fall flat. In their example, HEINEKEN found that their sales representatives, who had spent years fostering relationships with customers, were key to onboarding new AI-driven tools. This trust enabled faster adoption and more effective results, showcasing that human connections remain vital even in a tech-driven world.

The session emphasized that AI tools, such as Copilot for workflow optimization, can deliver significant efficiency gains. However, their success depends on how well they align with the needs and expectations of the end-users—both employees and customers. Building trust with stakeholders before introducing AI solutions ensures smoother transitions and better outcomes.

1. Data Integration and Quality

AI systems require clean, harmonized data to deliver meaningful results. Many companies struggle to unify disparate datasets across platforms, which can hinder AI performance and delay results.

2. Organizational Resistance

Employees may view AI as a threat to their roles or as a complex, unnecessary burden. Without addressing these fears, companies risk poor adoption rates and inefficiencies.

3. High Resource Requirements

AI implementation involves significant investments in infrastructure, training, and personnel. For businesses with limited resources, this can create barriers to entry.

4. Ethical and Privacy Concerns

AI relies heavily on customer data, raising questions about how that data is collected, stored, and used. Transparency and ethical guidelines are crucial for maintaining customer trust.

1. Prioritize Understanding Customer Needs

Drawing from HEINEKEN's example, the starting point for any AI strategy should be a deep understanding of customer pain points and behaviors. AI solutions must be designed to address these needs directly.

2. Partner with Trusted Experts

Collaborating with experienced vendors who understand both technology and business needs is critical. HEINEKEN’s partnership with Virto Commerce demonstrated how external expertise can drive innovation while maintaining focus on the customer.

3. Adopt a Phased Approach

By introducing AI in manageable stages, businesses can test its effectiveness, gather feedback, and iterate on solutions. This method reduces the risk of failure and builds confidence among stakeholders.

4. Foster a Culture of Openness

Encouraging curiosity and transparency helps alleviate fears surrounding AI. The emphasis on creating an environment of collaboration and feedback is instrumental in achieving buy-in from the teams.

For those interested in the full discussion on HEINEKEN's AI journey and the role of trust in driving adoption, watch the complete video of the presentation. Explore how that approach can inspire your organization to take the first step toward AI-driven transformation.

If you’re thinking, “Can AI do online shopping for me?” we can say that with its current trajectory of innovation, it promises to transform both B2C and B2B sectors, introducing advanced capabilities that completely redefine the shopping experience. Insights from the B2B Online Europe 2024 conference, supported by the study, conducted earlier in the year, reveal the opportunities, challenges, and trends shaping AI adoption in B2B ecommerce. B2B Online surveyed 100 leaders in Q3 of 2024 to find out how they are implementing AI solutions, the role data is playing in these efforts, and how they continue to strive toward an ultra-personalized future.

Nearly all surveyed businesses (99%) reported having a clearly defined AI implementation strategy. This highlights a near-universal understanding of AI’s importance in staying competitive. While B2B traditionally lags behind B2C in adopting new technologies, European B2B organizations are now embracing AI to transform how they serve clients.

Generative AI is a powerful trend shaping the future of ecommerce. This technology, which can create new content such as product descriptions, marketing copy, and even visual assets, is already being used to automate labor-intensive tasks. For example, companies like Amazon are exploring generative AI to make their search functions more interactive and conversational, moving beyond traditional keyword-based systems.

In the coming years, generative AI is expected to enhance personalization further by dynamically creating tailored content and offers for individual customers, leading to higher engagement and loyalty.

At Virto Commerce, we take generative AI a step further with Virto Portal, designed for content-driven ecommerce projects. Recognizing the increasing importance of rich, informative content in B2B purchasing decisions, the Virto Portal integrates content management capabilities into eCommerce workflows. This includes embedding product-related content like certificates, research papers, and video tutorials into the buying process.

Personalization has long been a hallmark of B2C success, but B2B buyers increasingly expect the same tailored experiences. More than half of respondents of the B2B Online survey believe personalized sales outreach is the most impactful form of personalization for their clients. However, achieving this level of personalization requires integration of AI with data analytics—a hurdle for firms still grappling with insufficient data quality and outdated tech stacks.

The demand for hyper-personalized shopping experiences will only grow. For instance, augmented reality powered by AI could allow customers to virtually try on clothing or visualize furniture in their homes before purchasing. This level of immediacy and relevance transforms the shopping experience into something more immersive and satisfying.

AI is also moving toward autonomous decision-making capabilities. These systems can analyze data, predict trends, and make operational decisions without human intervention. For example, predictive analytics could help businesses anticipate inventory needs and automate supply chain adjustments, reducing waste and meeting demand with greater precision.

Many companies using AI in ecommerce struggle to balance automated solutions with the need for meaningful human interaction. While AI-powered tools can accelerate processes and scale personalization, there is a growing awareness that overreliance on automation risks alienating clients who value personal connections.

As AI adoption accelerates, concerns about its implications persist. There are still worries about potential errors, security vulnerabilities, ethical dilemmas, and becoming too dependent on rapidly evolving technologies. These issues highlight the importance of robust governance frameworks and transparent AI practices to build trust with both employees and customers.

Virto Commerce offers AI-driven solutions designed to meet the needs of B2B organizations. From product data harmonization to advanced generative AI tools, we provide a suite of features to set your business on the path to success.

Among our standout solutions are:

1. SmartCapture: Simplifying Orders with AI

SmartCapture is a game-changing tool that allows businesses to process handwritten notes, invoices, or screenshots with ease. Customers can take a picture of a handwritten product list—including quantities and prices—and upload it into the Bulk Order Pad. The tool automatically recognizes the products, matches them to the catalog, and generates an order or quote.

• Multilingual Capability: SmartCapture works with handwritten notes and invoices in any language.
• No SKU Needed: Products are recognized directly from the catalog, saving time and reducing errors. 

This technology facilitates order management, making it faster and more accessible for businesses to handle bulk purchases and complex documentation.

2. Generative AI for Multilingual Product Descriptions

Virto Commerce’s generative AI capabilities create product descriptions and summaries in multiple languages. This functionality simplifies the task of managing extensive product catalogs, particularly for global businesses, by ensuring accuracy across different markets.

 
With our API-first Virto Atomic Architecture™, companies can integrate third-party AI technologies into their existing workflows, ensuring scalability and adaptability.
 

Artificial intelligence is no longer a distant concept—it's an essential tool for businesses looking to thrive in the competitive world of ecommerce. For businesses in both B2C and B2B sectors, early adoption of AI is not just a strategic move—it’s a necessity. Companies that integrate AI solutions today are setting themselves up for long-term success by staying ahead of technological trends, meeting customer expectations, and unlocking new revenue streams.

Virto Commerce invites you to join this journey into AI-driven ecommerce!