JD Duarte


Jose Duarte describes how artificial intelligence is used in eCommerce

Although it is invisible to most users, artificial intelligence (AI) is everywhere. It’s in a Google search, making an online purchase, consuming streaming entertainment, etc. The pandemic, in addition, has only strengthened this trend, making our consumption habits increasingly digital. Therefore, the application of AI in eCommerce has become the new normal. Jose Duarte, an entrepreneur and technology expert from Costa Rica, discusses where AI can be found in eCommerce.

An increasing percentage of total retail purchases are derived from the online channel. “Today’s consumer is increasingly accustomed to this channel,” explains Duarte. “Of course, the new generations do not conceive of a shopping experience without it.”

This is why online companies are looking for new formulas to continue beating their own brands and improve the performance of their business. New strategies, models and technologies capable of optimizing Internet purchases and enriching the customer experience are sought, and that is where the benefits of the use of artificial intelligence come in. The great challenges are in fields as diverse as logistics and in the ability of eCommerce to know users, relate to them and satisfy their demands.

The power of AI can be used to enhance the services offered by any eCommerce platform. It can be used to improve the offer or to assist businesses. Chatbots are one of the most popular current uses. Chatbots improve the platform’s support system. It is possible to automate virtual assistance and improve response time.

AI’s most well-known feature is its ability to personalize the recommendations that are sent to users. This can be done according to the category (trends and behaviors, product characteristics), then based on the customer status (new, repeat, looking for a particular product, etc.). Duarte asserts, “Using AI tools in logistics allows you to optimize this stage of production in a significant way through the possibility to predict sales, manage stock, optimize prices, and so on.” This allows you to lower costs and increase profits.

Another activity that reaps the most benefits from AI is optimization of search engines and adaptations of advertisements (smart Banners). The Netflix search engine is a good example. This personalizes not only the results but also the images that are displayed to users (for the same movie/series, a poster may appear or another depending on which profile).

The application of AI in eCommerce can also allow for better understanding of the preferences and behavior of users. This can help to create strategies that target user segmentation. This could be used to protect customer leakage and analyze customer lifetime value.

The possibilities for digital marketing have increased with the advancement of AI. This discipline can be used to automate and personalize campaign content (individualizing tone and time for sending emails, as well as analyzing the behavior and interaction among users on social networks).

This refers to all of the applications AI can provide to enhance the user experience in a particular context. It includes virtual reality systems that simulate how a hair color or piece of furniture might look in your home, as well as the design of custom clothes.