Four Best Use Cases of Generative AI in eCommerce

Beth Norton
September 1, 2023
4 mins

In the hyper-competitive eCommerce landscape, staying ahead of the competition isn’t just a goal, it’s a necessity for business growth. In an industry moving at lightning speed and with customer expectations ever-evolving, businesses need to be able to keep up in order to succeed.

The groundbreaking technology that provides a game-changing solution? Generative Artificial Intelligence (GenAI). AI has become an indispensable tool for eCommerce businesses to streamline operations and understand their customers and their buying behavior better. And Generative AI has emerged as a transformative complementary force, offering the ability to create content and solutions that allow businesses to deliver personalized experiences, allowing them to better resonate with and connect to their audiences. GenAI empowers eCommerce businesses not only to adapt but to innovate, engage and ultimately outperform their competition.

So, just how you can leverage GenAI to boost productivity and transform your customer experience? In this article, we’ll explore the top four use cases for GenAI in eCommerce.

1. Content Creation

Generative AI has completely changed the content creation landscape. From improved productivity and efficiency to faster time-to-market, GenAI has revolutionized the way business teams operate. Natural Language Generation (NLG) algorithms use vast amounts of data to generate content such as product descriptions, social media copy, calls to action, promotional taglines, as well as blog posts and e-books. With the ability to create content on almost any topic for any industry, these GenAI models support business teams to produce content at scale, and quickly.

To learn how Amplience can help your content teams produce faster in Dynamic Content, read about our Generative Rich Text Editor here.

2. Image Generation

Another brilliant use case of Generative AI in eCommerce is image generation. Generative Adversarial Networks (GANs) can be used to generate new product images, allowing businesses to quickly and effortlessly produce realistic-looking product imagery that can be used for eCommerce or advertising. It’s an approach that can save merchandising teams huge amounts of time and resources spent on campaign shoots, product photography and editing. However, for this to be successful, the Large Language Model (LLM) used by the GenAI technology needs to have context.

Find out more about the importance of context and specialized AI in our recent blog post.

3. Product Recommendations

It’s no secret that personalization is the key to outperforming your competition. And one of the biggest opportunities for personalization in the shopping experience is tailored product recommendations.

By analyzing customer data such as browsing history and purchase behavior, Generative AI algorithms can create product recommendations that are tailored to customers’ preferences, helping businesses to increase customer loyalty and drive conversions.

One business in particular that has achieved success is San Francisco-based clothing brand Stitch Fix. By combining the expertise of personal stylists with the speed and efficiency of AI technology, Stitch Fix offers a subscription service that delivers personalized clothing recommendations straight to the doorsteps of its customers. With AI analyzing data on clothing trends, customer feedback and preferences, and measurements, the stylists are armed with a curated selection of clothes to recommend that match their customers’ lifestyles and budgets.

Amazon also uses generative AI algorithms to deliver personalized product recommendations and attributes a whopping 35% of total purchases to those recommendations!

4. Data Analysis

Generative AI is already broadly used in eCommerce to boost the efficiency of business teams and one of the best use cases for this is data processing and analysis. Through automation, GenAI can identify patterns, outliers and missing values, resulting in cleaner data sets. It can quickly process and interpret vast amounts of data, allowing eCommerce businesses to gain valuable insights about customer engagement and site performance, and make informed decisions based on that data, and fast.

Generative AI will be instrumental in the evolution of the digital commerce landscape, both to improve operational efficiency in business teams and to improve the frontend customer experience. But how will you use it? Which use cases will drive business value for your company?

Get in touch with a member of our team today and find out how Amplience can help you transform your content strategy and deliver personalized, connected shopping experiences for your customers.