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5 ways AI is helping to improve customer service in e-commerce

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AI is transforming e-commerce customer service through chatbots, personalized recommendations, voice assistants, fraud detection and image recognition.

Artificial intelligence (AI) has revolutionized the e-commerce industry in recent years. One of the most significant ways in which AI is impacting e-commerce is by transforming customer service. AI-powered customer service technologies are becoming more common, and they are helping to improve the customer experience in numerous ways.

This article will discuss how AI improves customer service in e-commerce, with examples of companies using these technologies to their advantage.

Chatbots

AI-driven chatbots are assisting online retailers in offering prompt and effective customer support. Without human assistance, chatbots may provide 24/7 customer service. They can assist clients with information about the products, order tracking, returns and refunds, and other services. For instance, H&M uses a chatbot to assist shoppers in finding products and placing orders on its website.

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However, chatbots may not always understand complex customer queries, leading to frustration and dissatisfaction.

Product recommendations

AI is capable of analyzing client data and making tailored product recommendations. E-commerce companies can provide customers with products more likely to be of interest by learning about their preferences and past purchases. For instance, using AI, Amazon suggests products based on a customer’s browsing and purchase history.

The 4 key components of the most successful Amazon product pages are:
1. A personalized shopping experience
How? Get your Web Dev to use Amazon Personalize to deliver personalized recommendations to your customers
…

— Talia Wolf (@TaliaGw) May 3, 2023

Personalized recommendations, however, may be perceived negatively by some customers as intrusive or creepy, which is one of the disadvantages of AI.

Fraud detection

AI can help e-commerce businesses detect and prevent fraudulent activity before it happens. By analyzing patterns of fraudulent behavior, AI can identify potential fraudsters and flag suspicious transactions. For example, PayPal uses AI to detect fraudulent transactions and prevent unauthorized account access.

Related: 7 Potential use cases of chatbots in banking

However, these systems may not always accurately distinguish between legitimate and fraudulent, leading to false positives that can inconvenience and frustrate customers.

Voice assistants

With the rise of voice assistants like Amazon’s Alexa and Google Home, e-commerce businesses can use AI to provide a more seamless customer experience. Customers can use their voices to order products, check order status and get answers to questions. For example, Walmart has integrated its shopping service with Google Home, allowing customers to add items to their cart and place orders using voice commands.

Still, voice assistants might not always understand consumer requests correctly, which could cause annoyance and mistakes during the ordering process.

Image recognition

E-commerce companies can enhance their product search and discovery with AI-powered image recognition. AI can make it easier for buyers to find what they want by examining product photos and recognizing characteristics like color, shape and texture. For instance, Wayfair uses image recognition technology to assist clients in locating furniture and home décor items that complement their tastes and aesthetics.

Related: 5 emerging trends in deep learning and artificial intelligence

However, one disadvantage is that image recognition may not always accurately identify products, especially if they are similar in appearance or if the lighting and background in the image are poor. This can lead to frustration and incorrect purchases for the customer.

The future of AI in e-commerce

As e-commerce continues to evolve, AI technology is playing an increasingly important role in the industry. AI is revolutionizing how online retailers conduct business, from personalizing the shopping experience to improving supply chain management. There are several areas where AI is anticipated to significantly affect e-commerce in the future.

Visual search is one such area that enables users to find things by merely submitting a photo. Retailers can use AI to analyze photos and determine product characteristics like color, style and material. Using this technology, a customer’s browsing history can be used to generate product recommendations.

Additionally, it is anticipated that e-commerce will place more emphasis on AI-powered fraud detection. AI can assist merchants in identifying and preventing fraudulent transactions by analyzing trends in client behavior. The risk of stockouts and overstocking can be decreased by using this technology to improve the accuracy of supply chain forecasts and inventory management.

Finally, thanks to its capability to analyze consumer behavior and make real-time price adjustments, AI can assist businesses in optimizing their pricing plans. Additionally, this technology can be used to design customized sales incentives and promotions for specific clients, fostering client loyalty and boosting revenue.

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  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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