How AI will impact ecommerce in 2023

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(Image credit: Shutterstock / Ryzhi)

From marketing and finance to customer service and entertainment, Artificial intelligence (AI) has transformed industries by offering efficient (and sometimes amazingly accurate) solutions to everyday tasks. 

The appeal is easy to see — AI can complete routine tasks like data processing, analysis, and automation with the click of a button, allowing organizations to focus efforts on other priorities. AI technology is so powerful that companies will pay big bucks to those who can utilize it to navigate this rapidly changing landscape.

AI has also significantly impacted ecommerce with tools like ChatGPT helping business owners save countless hours writing product descriptions, composing emails, and generating product ideas. Jungle Scout’s AI Assist feature lets Amazon sellers build compelling product listings using AI, a task that normally takes time and strong copywriting skills. 

As we move further into 2023, the role of AI in ecommerce will become even more prominent as new functions are released to improve ecommerce sellers’ daily workflows.

With AI-powered tools becoming more sophisticated, businesses can leverage AI to improve customer experience, increase productivity, and grow their businesses. 

Let’s go over my top five predictions on how AI will impact ecommerce in 2023. 

1. Answer customer service requests

Soon, more and more ecommerce websites will take advantage of some sort of AI customer experience tool — more specifically, AI chatbots. 

Using AI to answer the most common customer inquiries will not only save businesses tons of time but will be able to provide faster and more accurate  customer service as these tools become even smarter and more sophisticated.

By analyzing customer interactions with chatbots, AI-powered tools learn and become better at understanding and responding to customer queries. Chatbots can improve the overall customer experience, reduce support costs, and free up human support to handle other aspects of the business.

2. AI product image generation

With advancements in machine learning, AI will get to the point where it will be able to create product images, limiting the need to hire a professional product photographer or graphic designer. AI image tools such as NVIDIA’s GauGAN, Midjourney and already allow users to create AI-powered images and art. 

AI product image generation will benefit small businesses and startups who may not have the budget for professional photography. With AI image generation, product images can be generated in minutes, saving sellers time and money.

In addition, with the ability to generate images and infographics in various styles and backgrounds, ecommerce sellers can create unique and eye-catching product images that stand out from the competition.

AI image generation can also generate images in various sizes and formats, ensuring that products are presented in the best possible way on different platforms and devices. 

Stephen Curial

Stephen Curial, Chief Technology Officer, Jungle Scout.

3. Product listing optimization

AI tools such as Listing Builder AI Assist can already write product listings for sellers in a matter of seconds from user-generated keyword lists. From here, AI will soon learn to better optimize product descriptions with keyword optimization, tone and perspective selection, and targeted audience segmentation. 

Keyword optimization is one area where AI tools can make a significant impact. By analyzing search data and identifying high-performing keywords, AI algorithms can help ecommerce sellers optimize their product listings for search engines, increasing their visibility and driving more traffic to their online stores. 

By analyzing customer data and identifying language patterns from customer feedback or social media posts, AI algorithms can help sellers tailor their messaging to specific audiences, ensuring their descriptions resonate with customers and increase conversions — all with the click of a button.

4. Customer sentiment analysis

AI is very good at summarizing information through text summarization algorithms. These algorithms use natural language processing (NLP) techniques to analyze large amounts of text and distill the most important information into a shorter summary. 

Using AI for customer sentiment analysis can synthesize what customers like about a product, what they don’t like, and what product changes you should make. 

Using AI for customer sentiment analysis includes using natural language processing to analyze customer feedback, reviews, and social media posts to determine how customers feel about a particular product or brand.

AI can be used to perform sentiment analysis at scale, allowing businesses to quickly and accurately analyze large volumes of customer feedback in real time.

One of the key benefits of using AI for sentiment analysis is the ability to analyze unstructured data. AI algorithms can analyze large volumes of unstructured data, including social media posts, product reviews, and customer feedback, and identify patterns in language and sentiment.

5. Fraud detection and prevention

Ecommerce businesses are constantly at risk for fraudulent activities such as fake reviews and credit card fraud. In 2023, AI-powered fraud detection and prevention tools are expected to become even more sophisticated, allowing businesses to detect and prevent fraud in real time.

By analyzing customer behavior and transaction data, these tools can identify fraudulent activity patterns and flag suspicious transactions for further review. This can help to protect ecommerce businesses from financial loss, reputation damage, and regulatory fines.

How will you utilize AI for your ecommerce business?

AI is set to play a significant role in ecommerce in 2023 and beyond, with the potential to change the way sellers run their businesses. From chatbots and customer service to product image generation and fraud detection, AI-powered tools will help ecommerce sellers run and grow their businesses.

Now is just the beginning for AI — it's clear that it will continue to be a game-changer for ecommerce, offering new opportunities for businesses to streamline their operations, improve customer experience, and increase their product performance. 

And the best part is, businesses of all sizes can take advantage of this technology to gain a competitive edge in the ecommerce industry.

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Stephen Curial

Stephen Curial, Chief Technology Officer, Jungle Scout.