How to use AI in eCommerce: Tools, tips, and tech explained

Natural language processing (NLP)

Natural language processing is the foundation of human-AI communication, allowing machines to understand and respond to text or voice in a way that feels intuitive. For eCommerce companies, this means better customer interactions – whether through chatbots, virtual assistants, or AI-powered search functions.

When an online shopper types “black hoodie under $40” or asks a voice assistant for size options, NLP AI helps decode the intent and deliver relevant results. This leads to a faster, more seamless customer experience – and ultimately, higher conversion rates.

Where it helps: Chatbots, voice commerce, review monitoring, automated FAQs, customer support.

Generative AI

Generative AI in eCommerce is a game-changer for productivity. It automates tasks like writing product descriptions, creating social media posts, and designing ads – saving time while ensuring consistency across your marketing strategy. This technology can also create visuals and videos, helping eCommerce retailers enhance their product listings and captivate potential customers with compelling content. 

Where it helps: Automated content creation, image generation, ad copy, email marketing, listing optimization.

Machine learning (ML)

Machine learning is at the core of most AI tools used in eCommerce. It enables deep data analysis, identifies patterns in purchase history, and learns from past customer behavior. Over time, ML algorithms improve their predictions, offering personalized recommendations, pricing optimization, and smarter inventory decisions.

ML also drives big data insights, improving customer engagement, boosting sales, and streamlining backend operations. 

Where it helps: Recommendation engines, fraud detection, churn prediction, automated discounts, and demand forecasting.

Deep learning

A more advanced form of ML, deep learning uses multi-layered AI algorithms to process massive volumes of consumer data, often mimicking how the human brain works. This is especially useful for recognizing images, interpreting tone in customer feedback, and detecting patterns in human behavior.

In the eCommerce sector, deep learning powers AI tools like visual search, where users can upload an image and instantly find a product match. It also drives high-performing voice assistants and predictive analytics used to improve the online shopping experience.

Where it helps: Visual search engines, sentiment analysis, voice commerce, product tagging, predictions for logistics, and historical sales data.

1. Pricing optimization

AI in eCommerce enables dynamic pricing strategies that adjust prices in real time based on consumer demand, supply, and historical data. These AI tools help eCommerce websites decide which products to discount, when, and by how much – leading to a more efficient sales process and better margins.

While major eCommerce retailers like Amazon already rely heavily on pricing optimization, affordable options for smaller sellers are still emerging. Here are a few providers offering dynamic pricing technology:

• Accenture – Pricing per consultation. 
• Omnia Retail – Free trial; pricing available upon consultation.
• Stackline – Pricing available upon consultation.

2. Chatbots and virtual assistants

Chatbots and virtual assistants use natural language processing (NLP) to interpret online shoppers’ questions and respond in real time. While they can’t fully replace human support, they handle routine tasks efficiently – saving time and improving customer interactions.

Used wisely, these AI-powered tools enhance existing support systems by answering common questions and allowing your team to focus on more complex issues. For best results, implement them as part of an omnichannel enhanced customer service strategy.

Popular tools include:

• SnapCall – From $249/month for advanced AI-powered support.
• ChatHub – A freemium option that connects with multiple chatbots like ChatGPT, Claude, Bard, and Bing.

By integrating AI in eCommerce, these tools can help improve customer interactions and reduce response times.

3. Product recommendations

Product recommendations based on customer behavior are one of the most common eCommerce features using artificial intelligence. It’s everywhere, from Amazon and eBay to Etsy and Starbucks.

Many eCommerce platforms and website builders offer plugins that deliver personalized recommendations based on past customer behavior, browsing history, and product descriptions. The quality of these suggestions depends on the strength of the machine learning algorithms behind them.

The goal is to deliver an enhanced customer experience while increasing the accuracy of marketing campaigns and streamlining the sales process.

Sellers on marketplaces like Amazon or eBay benefit from built-in tools, but independent eCommerce websites can also access AI-powered recommendation tools through apps and plugins.

Some of the best Shopify plugins for product recommendations using AI include: 

• Dialogue AI Personalization – From free to $399 per month.
• Visely Product Recommendations – From $199 per month. 
• Personalized Recommendations by Glood.ai – Free plan available. 

WooCommerce store owners can benefit from many AI plugins with free plans or requiring only one payment. Some of the best-rated options include: 

• The official WooCommerce Product Recommendations – From $8.25 per month.
• Related Products for WooCommerce by WebToffee – From $89-199 per year, paid on the developer’s website.
• AI Product Recommendations for WooCommerce by divcoderPlugins – One payment of $21.

4. Fraud detection and prevention

Online interactions are increasingly vulnerable to fraud, which led to $44 billion in losses worldwide in 2024. Fraudsters are constantly changing their tactics, making detection an ongoing challenge.  

Machine learning algorithms are the ideal countermeasure. They can significantly reduce financial losses by analyzing millions of transactions in real time, quickly identifying suspicious patterns, and adapting to new fraud strategies.

ML can catch anomalies that would take humans much longer to spot – like attempts to enter invalid postal addresses, which may signal identity theft or redirected orders aimed at stealing personal data. 

Implementing AI tools also helps detect phishing attacks, payment fraud, document forgery, fake reviews, and even ad fraud. 

While companies like Amazon use their own built-in systems to avoid fake reviews, smaller businesses can turn to tools like Fakespot – a free Chrome extension that specializes in detecting fake reviews and scams across several marketplaces.

Some AI-powered tools for fraud prevention include Nethone, Integral Ad Science, or ZenGRC. 

While some of these systems may be costly for small businesses, investing in a strong fraud prevention strategy early can save far more in the long run.

5. Customer segmentation

Customer segmentation groups people by traits like behavior, demographics, or preferences. AI-powered eCommerce tools use machine learning to analyze customer data, spot market trends, and improve over time. Advanced systems apply NLP and sentiment analysis to refine targeting and messaging. 

The result? Smarter product recommendations, more relevant content, and a personalized shopping experience that increases customer satisfaction and loyalty.

Google Analytics and Trends are the most popular tools that provide advanced insights. Zigpoll also helps generate customer insights by organizing surveys and analyzing responses on its platform.

6. Inventory management

AI-powered inventory management helps eCommerce businesses balance stock based on sales trends, historical data, and projected demand, reducing waste and avoiding shortages. 

Unlike traditional methods, which rely on manual tracking, AI systems automate the process and run continuously. With smart logistics and warehouse robotics, businesses can analyze data, manage stock more efficiently, and respond to supply chain issues faster. 

Amazon sellers from Australia, New Zealand, and the United States can use Intellify’s AWS Solutions, which provide consulting services.

There are solutions for all budgets, including: 

• QuickBooks – Subscriptions from $3.50 per month.
• TallyPrime – One-time payment of $630.
• Fishbowl Inventory  – Request a demo first.

7. Supply chain optimization

Supply chain optimization goes hand-in-hand with inventory management, using AI tools and machine learning for demand forecasting and early issue detection. The supply chain connects every step of production and delivery, and managing it means balancing factors like customer demand and capacity. 

With enough data, AI can make smarter, faster predictions. Many eCommerce platforms, including tools like Fishbowl, combine inventory and supply chain features to improve speed, accuracy, and operational efficiency.

8. Visual search and image recognition

Visual search uses AI systems to let users search with images instead of text – perfect for moments when you don’t know a product name, but know what it looks like. 

Shoppers often screenshot items from social media, then use visual search to find similar products online. AI algorithms analyze pixels, shapes, colors, and patterns, matching them to items in your catalog. As these AI systems train on larger datasets and apply deep learning, visual search becomes more accurate, offering a more intuitive online shopping experience and increasing customer loyalty.

This technology is powered by machine learning and image recognition, with major tools including: 

• Google Lens  
• Bing Visual Search
• Pinterest Lens. 

eCommerce retailers, like Amazon (StyleSnap), Cyder, Aliexpress, and ASOS, also use this technology. 

Another example is Printify’s AI Image Generator – an OpenAI-powered tool that lets users create unique, high-quality designs for print-on-demand products by simply entering descriptive text prompts.

Integrated directly into Printify’s Product Creator, it allows merchants to generate custom artwork in various styles, such as anime, line art, or 3D modeling, and apply it to items like t-shirts, mugs, and posters without needing external design software.

9. Sentiment analysis

Sentiment analysis (or emotion AI) uses artificial intelligence to detect emotions in written text. It identifies if customer feedback is positive, neutral, or negative. For eCommerce businesses, these tools scan reviews, surveys, emails, and social posts to label them as positive, neutral, or negative. This data helps brands improve customer satisfaction, fine-tune messaging, and even predict churn before it happens.

Tools like Medallia, Brandwatch, and Social Searcher analyze reviews, social posts, and surveys, providing actionable insights to guide marketing campaigns and boost customer engagement. Pricing varies greatly, and most services offer some sort of free trial.

10. Voice commerce

Voice commerce is where voice tech meets eCommerce. Think Alexa, Siri, or Google Assistant helping customers shop using their voice. These tools use natural language processing (NLP) and AI-generated content to interpret commands and guide the purchase process hands-free.

Still growing, voice commerce taps into several technologies, from synthetic media to natural language generation. Big-name brands like Starbucks and The North Face have already launched successful voice-enabled experiences.

Here’s how it works: 

First, voice is converted to text. Then, NLP analyzes customer intent and suggests products based on purchase history, behavior, or preferences, offering a personalized shopping experience.

Beyond convenience, voice biometrics can be a game-changer for accessibility and may help boost conversion rates. Some platforms even use voice biometrics for secure payments. One of the strongest examples of AI in eCommerce is Amazon, which uses artificial intelligence for personalized recommendations, voice shopping via Alexa, and smart inventory management.

That said, AI-powered voice tools raise privacy concerns, especially around customer data collection. So while voice commerce is promising, it’s still evolving, and worth watching as AI in eCommerce continues to grow. Companies like Just Call offer AI voice assistants with pricing available on consultation.