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How AI & ML are Improving Customer Experience in e-Commerce

Faiza Zafar

Technology and SaaS Content Specialist

Graphic Representing Machine Learning

Technology is evolving at lightning speed with machine learning (ML) and artificial intelligence (AI) taking the reins. It has disrupted nearly every industry across the globe including e-commerce

From automated cash registers to advanced security authentications, ML and AI have changed the way e-commerce stores work. According to Tractica, AI revenue is expected to reach $36.8 billion worldwide by 2025.

Let’s take a look at some of the ways ML and AI are streamlining and accelerating your e-commerce growth while improving customer experience (CX).

Fraud Detection

According to a study by LexisNexis Risk Solutions, online fraud is up to 7X more difficult to avoid than fraud in person.

The growing trend of online shopping has made e-commerce fraud a serious issue. Major e-commerce stores have to tackle thousands of orders daily. Many of these orders are card-not-present (CNP) procurements. It is more challenging to verify these purchases than transactions where the card and cardholder are present. CNP fraud can cost e-commerce retailers more than $71 billion over the next 5 years.

With AI and ML technologies, you can accurately analyze hundreds of data points from millions of transactions to detect patterns that may constitute fraud. When an AI algorithm identifies an anomalous order, it’ll either automatically block it or refer it to a human expert for evaluation.

Targeted Upselling at Checkout

For e-commerce retailers, understanding customers’ buying behavior is critical. AI- and ML-driven analytics enable you to study your consumers with remarkable accuracy and speed. This way, you can personalize every step of their customer journey.

AI-powered solutions collect data about your consumers’ behavior. In return, they provide the most relevant shopping experience to each consumer. As a result, you can increase your sales and profits. It allows you to upsell and cross-sell when your consumers purchase by showing popular related items during the checkout process.

According to PracticalEcommerce research, featuring related products at checkout boosts emotion-driven “joy buying”. It increases your revenue per customer. Often customers opt for online shopping to save time and money. Delivering relevant offers and product recommendations encourages impulsive procurements.

Intuitive Item Search Algorithms

Although text-based searches are quite common, voice and image searches in e-commerce are now getting popular. AI and ML make it possible for the buyer to move beyond simple textual product searches. Customers can search more effortlessly and intuitively via voice and visual product searches. This also makes shopping more accessible.

By using Natural Language Processing (NLP), AI and ML solutions understand the consumer’s natural language, be it in text or speech, to offer more relevant search results. Visual product searches are made possible via a combination of computer vision, image recognition, and reverse image search algorithms. 

The key to successful e-commerce product discovery is showing the right products to the right users at the right time. With AI and ML solutions, you can make this process intuitive and easy for your online visitors, no matter how they choose to shop. By offering personalized product discovery, you can make customers feel heard and understood. This fortifies brand affinity and improves customer experience.

Omnichannel Ad Campaigns

Do you know, 73% of customers use multiple channels throughout their shopping journeys? This means e-commerce brands have to reach out to their consumers with the right messages on the right platforms at the right times. This is where AI can be a complete game-changer as it helps you with consistent targeting on all platforms.

With AI, you can easily understand your customers’ choices, their budget, the device they’re using, and the things they’re most probable to purchase. You can even get insights into their previous buying history, which can help understand their inclinations. This info better informs your ad campaigns and empowers you to create tailored and targeted offers and to cross-sell products between channels.

Improve Your Customer Experience with Indellient

Today, AI and ML are successfully taking contextual content, personalization, marketing automation, and sales prediction to a whole new level of precision and speed. These technologies are helping e-commerce businesses experience better revenue growth while strengthening customer relationships in the process.

At Indellient, we can help you embrace AI and ML technologies to improve customer experience on your e-commerce site. We can identify the right systems and tools to capture, clean, organize, and transform data for real-time personalization, anomaly detection, or processing.

We can also identify risks and errors to decrease downtime and enhance user satisfaction. Get in touch to learn more about how we can help e-commerce retailers.


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Indellient takes a customer-first approach to help you bring all your Analytics data into one place. Our team of Data Analysts, Data Engineers, and Data Scientists make sure you get the most out of your data.

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