• by Andy Siviter , September 14, 2023

There’s no doubt about it: AI technology is fundamentally reshaping the world of online shopping. So much so, in fact, that it seems as though we’re living through a digital revolution changing the game for customers and marketers alike.

Which also means that those who adapt to the revolution are going to be the ones that not only survive but succeed.

While personalization and smart curation are nothing new, recent innovations show a clear leap toward making the shopping experience more tailored and convenient than ever before. AI is now streamlining the entire process, sparing customers from the tiresome task of browsing through countless pages and feeling overwhelmed by choices by frontloading exactly what consumers might be inclined to purchase, while surfacing products and inspiration they might not have found otherwise.

How does this work? By exploring vast data sets collected from customer search, buyer behaviors and purchase histories, AI pieces together a variety of different data points to generate precise results that cater to individual preferences, then refines its learning based on your engagement in the recommendations it makes.

Amazon’s Prime Day showcased its significant investment in bringing deeply personalized shopping experiences to customers on a global scale. For one, it introduced features such as “deals inspired by your history,” “deals related to your views,” and “recommended deals in XX category”—all meant to demonstrate just how closely the ecommerce giant watched you!

Here’s another case in point. Consumers now have access to virtual try-ons that offer a highly personalized experience, allowing them to make adjustments like modifying skin tone, contributing to a more accurate assessment of how products will look on them.

Let’s talk strategy. For one, personalized recommendations designed for each individual shopper will increasingly be key to overall ecommerce success. Retailers must seamlessly weave these personalized suggestions into the shopping experience to become a favored shopping destination for consumers in the coming years.

AI now plays a major role in how we market to consumers. Google, Meta, Amazon and other ad platforms are now harnessing the vast data sets they have to reach consumers in increasingly sophisticated ways.

Crucially, AI prediction is also now being used to fill data gaps that have appeared as a result of the depreciation of tracking technologies like cookies. When it comes to improving user experience, AI is a win-win, with retailers now using smart sizing, fit and style recommendations to decrease the likelihood of returns.

Marketers should also take into account the impact of Search Generative AI and the evolving interactivity and intuitiveness of the Search Engine Results Page (SERP) tailored to consumer needs. This transformation will influence the type of data we provide to the AI, and consequently reshape the look of our ads. As Google begins to integrate ads into user conversations within the SERP, the dynamics of how our ads are presented will necessarily undergo a significant shift.

 Retailers that explore, test and adopt AI the fastest will be the winners in this new age of ecommerce.