AI for e-Commerce

Updated: July 31, 2023

AI for e-commerce refers to the integration of artificial intelligence technologies and algorithms into online retail platforms and customer experiences. AI enables e-commerce businesses to deliver personalized and highly targeted shopping experiences to customers by analyzing vast amounts of data, such as browsing behavior, purchase history, and preferences. By leveraging AI, e-commerce platforms can recommend products tailored to each individual customer, leading to increased customer satisfaction and improved conversion rates. AI-powered chatbots and virtual assistants are also becoming increasingly common in e-commerce, providing real-time customer support and enhancing the overall shopping experience. Additionally, AI can help optimize supply chain management, inventory forecasting, and pricing strategies, leading to improved operational efficiency and cost savings for e-commerce businesses. The use of AI in e-commerce continues to evolve, revolutionizing the way online retailers interact with customers and streamlining various aspects of the retail process to create a more seamless and personalized shopping journey.

See also: Top 10 Online Store Builders

2022. Pinterest acquires AI-powered shopping startup The Yes



As Pinterest focuses on enhancing the online shopping experience on its platform, the company has announced its acquisition of the AI-powered fashion shopping service called The Yes. This acquisition will establish a new strategic division within Pinterest dedicated to driving the company's shopping initiatives, including the development of features for both shoppers and retailers. The addition of The Yes comes at a time when Pinterest is adapting to the evolving landscape of online shopping, where users are increasingly drawn to creator content, videos, and personalized feeds rather than traditional image-based inspiration. With its underlying technology, The Yes has the potential to contribute to the personalized shopping experience Pinterest aims to provide.


2020. Syte, an e-commerce AI visual search platform raises $30M



Visual search and product discovery platform Syte, which is already adopted by renowned brands such as Farfetch and Fashion Nova, has successfully raised $30 million in its Series C funding round. The platform comprises three primary products: Visual Discovery, enabling brands to incorporate camera search, recommendation engines, and discovery buttons; "Searchendising," which utilizes visual AI to automatically generate tags, thereby enhancing search and recommendation outcomes; and a Discovery Marketplace utilized by publishers, manufacturers of smart devices, and social platforms to extend the reach of product advertisements.


2020. Zycada raises $19M for a bot that speeds up e-commerce and other interactive services



Zycada has emerged from stealth mode to tackle the issue of shopping cart abandonment by utilizing bot-based technology that accelerates the loading speed of interactive elements on e-commerce websites. Alongside its debut, the company has announced securing $19 million in funding. Zycada has already attracted several major customers, including one of the world's largest retailers (who prefers to remain anonymous in this context). These businesses are leveraging Zycada's technology to enhance the performance of their websites, particularly optimizing the responsiveness of interactive elements like "buy" buttons. The company's ability to secure substantial funding while operating in stealth mode is likely attributed to its impressive roster of prominent clients.


2019. AI-based e-commerce helpdesk Gorgias raises $14M


Gorgias, a startup specializing in artificial intelligence tools for customer service and support, has recently secured $14 million in Series A funding. Gorgias is capitalizing on a broader trend where brands are seeking to establish direct connections with consumers, bypassing intermediaries like Amazon. Their product seamlessly integrates with Shopify, leveraging AI capabilities and customer data to automate responses to common queries such as "What's my tracking number?" By adopting this approach, businesses can free up customer service representatives from spending a significant amount of time on repetitive inquiries, resulting in faster response times for customers.