AI chatbots for e-commerce. Case studies

AI chatbots in e-commerce are evolving along with the changes we’re seeing in how brands communicate with their customers. From simple automated responders that allow you to select a dialogue option to advanced artificial intelligence assistants, chatbots have changed the way businesses engage with customers. Read on to find out more.

AI chatbots for e-commerce – table of contents

Applications of AI chatbots in e-commerce

The value of generative AI used in e-commerce is expected to reach $2.1 billion by 2032, with a projected annual growth rate of 14.90% between 2023 and 2032 (https://marketresearch.biz/report/generative-ai-in-e-commerce-market/).

This rapid growth is primarily due to the wide range of applications of chatbots, which can significantly reduce the cost of doing digital business. In the context of e-commerce, chatbots are used in areas such as:

customer service – chatbots can answer customer questions quickly and efficiently, reducing wait times,
personalizing the shopping experience – by analyzing customer data, chatbots can offer personalized product recommendations. Amazon, using its Alexa voice assistant, suggests products based on a user’s previous purchases and preferences,
order management – chatbots can also help track orders and inform customers of their delivery status,
creating marketing content and product descriptions – chatbots are able to analyze visual and textual content and suggest interesting descriptions kept in the tone chosen by the seller.

These examples show how chatbots are making life easier for both customers and businesses, offering fast and convenient service. In the future, we can expect to see further development of these technologies, which will be even more customized, opening up new opportunities for the e-commerce sector.

Klarna

Klarna, a Swedish company that offers payment solutions for e-commerce, has revolutionized the industry by using chatbots to improve customer service. Known for its innovative approach to finance, Klarna uses artificial intelligence to provide its users with a seamless shopping experience.

Klarna uses chatbots mainly to:

Automate customer service. In its first month of operation, Klarna’s AI assistant handled two-thirds of all customer service chats, the equivalent of 700 full-time agents. This shows how effectively chatbots can manage large numbers of queries, reducing the burden on employees and the company’s costs.
Increase customer satisfaction. Klarna found that its AI assistant achieved customer satisfaction levels comparable to human agents and even contributed to a 25% reduction in repeat inquiries, thanks to greater accuracy in resolving issues.

Klarna is constantly striving to push the boundaries of fintech, and plans to continue using AI to streamline processes and provide an even better customer experience. This approach can inspire other companies looking for ways to use technology to optimize their services.

Source: Klarna (https://www.klarna.com/international/press/klarna-ai-assistant-handles-two-thirds-of-customer-service-chats-in-its-first-month/)

N!Asystent

N!Assistant, developed by Nest Bank, is another example of the innovative use of AI in the area of customer service. Using the GPT-4 language model from Microsoft, N!Assistant offers a new level of interaction, allowing users to communicate in natural language and perform advanced banking operations.

One of N!Assistant’s key features is natural language communication, which allows customers to have smooth, natural conversations with the chatbot, significantly improving the user experience. For example, a customer can ask about the best ways to save money, and N!Assistant will suggest products tailored to their financial needs.

N!Assistant is also about managing personal finances. It analyzes the client’s expenses and offers budget management tips to help better plan finances.

The potential of AI to improve customer interactions is enormous, and the example of N!Assistant shows how the technology can contribute to a more personalized and efficient service.

Source: Telepolis (https://www.telepolis.pl/fintech/taryfy-promocje-uslugi/nest-bank-n-asystent-gpt-4-microsoft-sztuczna-inteligencja)

Shopify

Shopify, an e-commerce platform, has had a significant impact on the way business owners sell online. With the integration of chatbots, Shopify offers tools to help manage the store and improve customer service, which is critical to success in the digital world. Chatbots in Shopify support:

store management – Sidekick, a generative AI chatbot, helps store owners with various tasks such as setting discounts, summarizing sales data, and changing store designs. Sidekick is able to understand and answer questions about Shopify features and business management, greatly simplifying time-consuming and repetitive tasks,
customer service – chatbots can answer customers’ frequently asked questions, offering quick and precise information to increase customer satisfaction and loyalty.

Feedback from Shopify users on the effectiveness of chatbots is positive. Business owners appreciate how Sidekick makes it easier to manage the store, which leads to better sales results and a higher level of customer satisfaction. Statistics and user testimonials confirm that integrating chatbots is beneficial for both sellers and their customers. The future of e-commerce platforms like Shopify seems to be closely tied to the advancement of AI, which opens up new opportunities for businesses to automate and personalize services.

Stitch

Stitch, a company that provides inventory management services, is using chatbots to innovate its processes. Using generative AI, Stitch is able to offer solutions that streamline the creation of marketing content and product descriptions, which are key to successful online sales.

Chatbots can create engaging ad headlines and product descriptions that match the tone of a brand’s communications. This significantly speeds up the content creation process and allows for better alignment of messaging with customer expectations.

Stitch’s innovative approach to using AI in inventory management can serve as a model for other companies looking for ways to optimize their operations.

Source: Stitch (https://multithreaded.stitchfix.com/blog/2023/03/06/expert-in-the-loop-generative-ai-at-stitch-fix/)

Etsy

Etsy, a global marketplace for creators and crafters, is effectively using chatbots to support its community of sellers and buyers. With advanced AI algorithms, Etsy offers features that make it easier to search and discover unique products.

Chatbots on Etsy support:

image search – using image recognition technology (Computer Vision, CV) allows shoppers to search for products using photos, which is especially useful in the case of unique or handmade items,
personalization of the shopping experience – AI algorithms analyze users’ preferences and behaviors, offering personalized product recommendations.

The role of AI in shaping online communities such as Etsy cannot be overstated. The technology enables the creation of more personalized and engaging shopping experiences, which contributes to building strong relationships between brands and their customers.

Source: Etsy (https://www.etsy.com/codeascraft/from-image-classification-to-multitask-modeling-building-etsys-search-by-image-feature)

AI chatbots for e-commerce – summary

In summary, chatbots are playing a key role in the transformation of e-commerce, providing businesses with tools to automate customer service, personalize the shopping experience, and optimize business processes. Innovations in AI and chatbot technology are opening up new opportunities for e-commerce, encouraging businesses to explore these solutions to increase competitiveness and customer satisfaction.

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Author: Robert Whitney
JavaScript expert and instructor who coaches IT departments. His main goal is to up-level team productivity by teaching others how to effectively cooperate while coding.
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