AI is Changing E-Commerec​e Industry

What does the future look like for e-commerce business? There has been a lot of noise about Artificial Intelligence (AI) impacting every aspect of the world we live in.  Before we dive into the future and talk about AI and what that has in store for us let’s take a stroll down a memory line. Let me throw it back all the way to the late 1900s  and the early 2000s to see how technology has evolved over the past few years. Are you ready to have your mind-blown? 

1995: Jim Bezos, Amazon’s founder, and CEO, sold the company’s first ever book in July.

2000:   USB Flash drive was introduced to the market.

2001: Wikipedia was launched.

2002:  First camera phone was invented in Japan.

2003: Apple launched iTunes. 

2005: Youtube was invented. 

2007: iPhone was introduced.

Holy cow, can you believe it? Let it sink in for a moment. First phone camera was introduced just short 17 years ago! Nowadays our smartphones have high-end camera features and there is no need to carry around a heavy DSLR camera, although the camera market has also evolved into more performing, compatible and lightweight cameras too. Let’s not forget that Amazon launched 25 years ago and now there are over 95 million Americans on Amazon Prime

In fact, growth projections estimate that by 2022, ecommerce revenues will exceed $638 billion in the U.S. alone. Artificial intelligence in the retail market is estimated to be US$ 27,238.6 million by 2025 from US$ 712.6 million in 2016. – Artificial Intelligence in Retail Market 2025

Here are just a few examples that AI is not meant to steal the show it is simply here to make our lives less complicated and allowing us to focus on more complex tasks that we are good at.     


Chatbots is a simple tool to make your life easier while you sleep. Chabot is a computer program that automates a real-life conversation to aid customer service representatives. “Customers will use a chatbot when they have a straightforward question”, says Michael Mills. On the other hand, people who have a non-standard more complex question that is difficult to explain, the human continues to be preferred. Chatbots will become an integral part of customer service as they continue to develop with years to come.

Recommendation Engines 

Product or service recommendations are being implemented when you think you are being spied on. AI algorithms work to identify your recent searches to suggest appropriate recommendations for you to help find what you’re searching for more efficiently. Both Chatbots and Recommendation Engines help us live our lives more productively.  

2019 Outlook 

1. Social Media becomes the new e-commerce platform 

I am sure you’ve heard about Instagram Shoppable and Shop Facebook, correct? Every new update gets us closer to something bigger and better. “Native payment capabilities on these platforms could turn the tide against traditional e-commerce platforms.” – Think about how much time is spent on social media? Will social media lead the e-commerce future? 

2. Automatization warehouse operations 

“AI and robots can help to improve the speed and efficiency of warehouse operations, reduce the need for employees and thus cut costs and increase revenue.” – We aren’t talking far into the future, this is happening right now. Tokyo – based automation startup has partnered up with to create the world’s first automated warehouse according to CNBC. Future is already here! 

3. 24/7 Customer service phone availability 

In the near future, customers might chat with AI just as easily as they would chat with any customer service reps, and the days of angrily smashing buttons at robots could be over. – Are you sick and tired of talking to a robot-sounding computer to get past initial screenings in order to talk to customer service representative? It’s annoying, what if I told you robot-sounding AI will become a distant memory – would you believe me? 

I hope you found this article to your liking! If you are interested in learning more about e-commerce in general or be the first to know about CustomCat’s new features and updates, I highly recommend you to subscribe below to our blog to have all the good deeds sent straight to your inbox.

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