3 Ways Your e-Commerce Brand Can Leverage Generative AI

Generative AI may sound like yet another AI buzzword, but if you run an e-commerce business, you can’t afford to ignore its potential. 

Camille Felappi
Camille Felappi

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Generative AI is reshaping online shopping to meet new customer expectations: a seamless, store-like buying journey from the comfort of home. And when you consider that 80% of customers see a brand's online shopping experience as important as its products, its importance becomes clear.

What Is Generative AI In e-Commerce?

Before discussing how to leverage generative AI, let's clarify what it involves. Generative AI in e-commerce utilizes machine-learning models to produce new data instead of solely predicting outcomes. Think of it as a system that learns to create products, designs, or content resembling those in its training dataset. 

This opens doors for personalized product recommendations, dynamic content generation, and even virtual try-on experiences, revolutionizing the way businesses engage with customers and enhancing the online shopping journey.

Seamless Personalization For Your Shoppers

It's undeniable: your shoppers expect you to understand their needs intuitively, without them having to ask explicitly. If we look at numbers, nearly half of all eCommerce shoppers say they’ve bought a product they didn’t intend to because of an automated recommendation. But existing recommendation engines are limited: they produce a high volume of irrelevant or poor recommendations, and the average consumer does not trust their ability to ‘know’ what they want.

Generative AI will allow these engines to adapt more quickly - and accurately - to individual customers’ preferences. Klarna has already partnered with OpenAI to launch a ChatGPT plugin that offers curated product recommendations and links to purchase through Klarna’s search and price comparison tools.

Cost-Effective Generative Product Imagery

According to Etsy, the quality of product images is the single most influential factor in eCommerce purchasing decisions. But good photography can be prohibitively expensive, especially for brands that have large product lines and no in-house visual talent. 

Generative AI will empower such brands to produce beautiful imagery cheaply and quickly. With a few sample product images and a simple prompt, these solutions will produce high caliber product lifestyle images in seconds. This will open up a range of creative possibilities, as brands can experiment, iterate and produce shots that would be otherwise difficult and expensive to achieve.

Enhanced Data Analysis

One of the great promises of eCommerce is the volume of data that is generated online. Managers can analyze numerous metrics, evaluate their strategic choices and adapt their offering to increase margins and boost sales. But while generating data is generally a matter of choosing a plugin, analyzing that data effectively requires skills many brands don’t have in- house.

With generative AI, this analysis will be far more intuitive. These solutions will be used to query data warehouses and produce human readable responses, as well as fielding questions about specific responses. Analytics reports and business intelligence will be automated. Some experts claim the solutions could even be trained to add “near-real-time insights” by cutting out the need for human intervention to provide contextual oversight.

Want to Future-Proof Your Brand with Generative AI?

This is just a glimpse of how you can leverage Generative AI. If you want to have a comprehensive overview on how AI technologies are reshaping the shopping experience, download our white paper “How Generative AI Will Transform E-Commerce”:

  • Dive into stats and forecasts on generative AI's impact on e-commerce. From personalized shopping to automated customer service, learn why AI is vital now.
  • Get practical tips for integrating AI into your e-commerce strategy. Whether you're a startup or an established company, stay ahead of the competition with our actionable advice.
  • Stay prepared for e-commerce's future with insights into emerging trends. Keep your business innovative and ahead of the curve.

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Camille Felappi

Camille is a B2B digital marketing specialist, focusing on SEO and content creation. She helps businesses connect with their target audience using data-driven and creative strategies.

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