The Future of E-commerce with AI

20 April 2023

By: Nikolaos Panagiotopoulos, UX Consultant

Category: Blogs

In the last few months, we have observed rapid development of new generative AI systems coming to life and very quickly changing how we work and understand the day-to-day experience of the web, with ChatGPT being the centre of attention.

ChatGPT is a Large Language Model trained using hundreds of thousands of gigabytes of text from academic papers to everyday articles. It can retrieve that information grammatically correctly, giving the illusion of interaction with actual intelligence. Since its release, all industries have been trying to understand its limitations and potential and how to use it in their products.

The e-commerce industry is one of them, with Amazon, Shopify and developing similar systems for their products. So why are these e-commerce giants trying to implement similar AI systems like ChatGPT to their products? And how can they use them? As the dust has yet to be settled, it is difficult to accurately say what the use of ChatGPT or similar products in e-commerce will be, but we can make some predictions based on its current abilities and potential.

1. Product Descriptions

ChatGPT is excellent at content creation and text manipulation. Therefore, one of its primary uses will be for the write-up of product descriptions. While the content might only be partially accurate if the user gives enough data, it can produce product descriptions highlighting a product and act as a good base for a content writer to finalise the copy. This will speed up redundant processes and allow for more accurate and quick copies.

2. Natural Language Search

What we currently observe with ChatGPT is its ability to understand questions and natural language prompts and respond to them. This feature opens many possibilities for future uses, such as improved search functions in e-commerce webpage. By implementing a natural language search model, we allow users to search products using everyday language and allow for more vague inputs. Users’ experience will improve as they will no longer need to type specific search items, but they can ask questions in the search field and come back with results that match these prompts.

3. Generative AI-powered Chatbots

Following the previous point, Chatbots powered by ChatGPT or similar AI systems will be able to assist users more holistically. Understanding natural language will allow users to ask for more vague questions and the chatbots to answer using the organisations’ database, thus creating a deeply personalised experience with the users and minimising the need for actual agents responding in chats. Moreover, the ability to remember previous conversations will alleviate a lot of friction as well as improve user experience.

4. Improved Customer Support

Following the previous point, ChatGPT can be used to provide better customer support for e-commerce businesses by training the system with frequently asked questions and their corresponding answers. This will lead to a quick response to customers’ questions and provide helpful solutions to their problems, leading to improved customer satisfaction and increased loyalty.

5. Enhanced personalisation

Personalisation will be one of the future applications of ChatGPT and similar ai systems. This can take many forms as this type of model will be able to collect data from browsing and purchase history and organise them to produce personalise suggestions to users. This can increase sales and improve user experience throughout the process. Some examples might be personalised email campaigns, personalised content and product suggestion to users.

In conclusion, the rapid development of ChatGPT and other similar AI systems has opened exciting possibilities for e-commerce businesses. From content writing to enhanced personalisation, AI-powered solutions can provide customers with a more personalised, efficient, and satisfying experience. Looking into the future, we can expect even more advanced AI systems that will shake the bedrock of the e-commerce industry. As these systems continue to develop, we hope to help the e-commerce industry stay competitive and relevant to the ever-evolving customer needs.

About Sagittarius

Sagittarius is an award-winning digital agency that helps brands create high-converting digital experiences. Established in the UK with over 40 years of experience, we’re a multinational team of innovators, visionaries, strategists, and problem solvers who will optimise your web experience and use data-led decisions to power up your CRO, content, and UX. We take a marketing-first approach to our development, baking in performance and measurement to deliver impressive ROI on your technology investment. We specialise in Sitecore as a complete or composable DXP platform and have our own Sitecore Optimisation Consultancy and training academy to empower your people.

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