AI-driven commerce tools: What's hype and what's here to stay

The artificial intelligence (AI) market is expected to grow past $700 billion by 2030. AI is now a technology that is reshaping industries, and not just a trend. 

We at Shop Circle see how AI helps our software company grow every day. We integrate it into our daily operations, using it to manage processes, improve product development, and ultimately help our merchants cut costs and increase their revenue. However, not all AI tools are useful. Some may look impressive, but not offer long-term benefits.

This article will provide practical tips to navigate the AI technologies in commerce. Let’s look into real-world applications, and differentiate between what’s hype from what’s here to stay.

AI in commerce: Making business smarter

The 2023 McKinsey report shows that the use of AI tools has significantly increased. About 70% of retailers have integrated AI technologies into their daily operations or plan to do so, which is a 40% rise from 2020. 

Stay ahead of your competitors:

• Use chatbots to provide quick customer support;

• AI-generated product recommendations;

• Manage inventory better with predictive tools;

• Create personalized campaigns.

Businesses may make smarter, more informed decisions and achieve greater results by focusing on practical AI technologies that solve real problems.

AI tools that are really making a difference

1. Shopping experience

Personalized shopping is the future. With 80% of customers more likely to buy when their experience feels custom-made, AI tools use browsing and purchase data to predict what shoppers might want - even before they realize it themselves. 

Why it’s here to stay: Customers anticipate recommendations that make their journey easier and faster. AI personalization will continue to be essential for online retailers, as demand increases.

2. Customer support 

There is more to customer service than just emails and calls. A large percentage of consumer inquiries are now handled by AI chatbots and assistants, which offer quick answers and resolve issues. According to a recent study, 68% of consumers have used a chatbot, showcasing their growing acceptance and reliance.

Why it’s here to stay: Customer inquiry responses are available 24/7 without putting extra strain on support staff. The technology is constantly improving, making interactions more natural and helpful. Up to 20% customer satisfaction increase and a 44% cost reduction were the outcomes of using these AI technologies.

3. Inventory management

Machine learning tools analyze algorithms, sales data history, and external factors to forecast future demand. It improves its predictions and accuracy over time, helping merchants optimize their stock levels. 

Why it’s here to stay: Efficient inventory management is the backbone of successful commerce. Companies using AI in their supply chains have experienced a 65% improvement in service levels.  

The overhyped AI tools

1. Product descriptions

The idea of using AI to write product descriptions sounds appealing. It saves time and effort, and some tools claim to generate copy that converts better than a human. However, many AI-generated descriptions still lack creativity and context, leading to generic, uninspired content.

Why it’s mostly hype: AI can assist with writing tasks, however it’s not yet able to substitute human creativity and understanding. A product description should capture the essence of a product, speak about its unique benefits, and connect with potential buyers. This is an area where the human touch is still needed.

2. Influencer marketing tools

AI tools that promise to find influencers for your brand have been emerging on the market recently. These tools analyze social media profiles and engagement metrics to identify potential influencers, yet they often lack the understanding needed to assess brand fit and authenticity.

Why it’s mostly hype: Metrics alone are not enough to choose the best influencer. It all comes down to matching your brand's values, style, and messaging. Although AI can provide data, it’s the humans who interpret it, understand brand identity, and make the final decision. 

What’s next for AI in commerce?

While the future of AI in commerce looks bright, companies need to be realistic and focus on technology that solves real problems, rather than chasing every new trend. 

Expert advice

• Focus on customer experience: AI tools that truly improve the shopping experience and solve pain points for customers will always have a place in commerce.

• Human-AI collaboration: AI should be seen as a tool that supports humans, not a replacement. Best results are often achieved through a combination.

• Continuous learning: AI requires regular updates, data learning, and adjusting to changes in consumer behavior.

If we approach AI with a clear focus on the customer experience and maintain the human aspect at the center of our strategy, it can be a powerful ally. 

Ask yourselves as you explore the AI-powered commerce tools: Will this actually help grow my business and provide better customer service? - It's most likely here to stay if the answer is yes.