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Generative AI in eCommerce – Benefits and Use Cases

  • Generative AI


20.7% of total retail business will be done using eCommerce in 2024. The growth momentum of the last five years indicates eCommerce will dominate both B2C and B2B segments in the coming years. With the extensive use of generative AI in eCommerce, businesses are set to skyrocket the contribution of eCommerce to total global sales.


In this blog, we will define what generative AI is, why the whole world is excited about generative AI, and how generative AI can impact eCommerce businesses the world over. We will also delve into Sigma Solve’s capabilities in building generative AI solutions for eCommerce businesses.

Generative AI

Generative AI is a paradox in itself. On the one hand, experts believe artificial intelligence is not fully understood; on the other hand, the use of AI is increasing day by day. Elon Musk, while expressing his skepticism, suggested that AI may surpass human intelligence to become uncontrollable. On the contrary, Bill Gates sees it as a tool for innovation and creativity.


Generative AI is a branch of artificial intelligence that creates autonomous and original content by leveraging neural networks to learn from vast amounts of data. Unlike traditional AI, generative AI creates human-like content based on neural networks and deep learning. The whole world is gung ho about the usability of generative AI due to its capabilities to generate new content without programming.


The reason behind this massive uproar over generative AI is attributed to the fact that Gen AI delivers human-like, unique content every time. Furthermore, it provides impetus for machine learning to perform tasks that were previously only done by humans. In addition, generative AI has spread beyond sectors that were impenetrable before. In totality, it has opened the doors for limitless opportunities, especially for businesses.

Generative AI’s Impact on eCommerce.

For the online retail and digital commerce industry, the attributes that drive growth and user loyalty are personalization across products, product recommendations, marketing emails, virtual try-ons, search bots, etc. When eCommerce businesses upgrade their online stores by embedding generative AI technology, they not only enhance the customer experience but also improve ROI rapidly.


As generative AI improves and the scope of eCommerce grows, artificial intelligence becomes an unavoidable reality for eCommerce businesses. Besides automating eCommerce operations, generative AI helps eCommerce businesses with predictive analysis, trend identification, consumer behavior, and deep data analytics to understand the market and customers more clearly to form strategies that improve the bottom line as well as revenue streams.

    • Through advanced algorithms, generative AI enables eCommerce businesses to analyze customers’ preferences, behaviors, and shopping history to improve the conversion rate. 
    • eCommerce platforms can automate the generation of dynamic content using generative AI to save resources, time, and money. Thus, businesses can deliver fresh content and cut costs.
    • eCommerce solutions with generative AI play a vital role in streamlining workflows such as order, inventory, dispatch management, and logistics. And helps predict demand to maintain stocks to improve operational efficiency and customer satisfaction. 
    • Cyberattacks and data thefts are the general vulnerabilities for eCommerce businesses that AI takes care of, providing robust security by deploying advanced algorithms to identify and prevent fraudulent activities.
    • Generative AI helps eCommerce businesses engage customers with a brand and products through chatbots. Chatbots resolve customer queries 24*7 to reduce response time and improve customer satisfaction.

    Challenges for Generative AI in eCommerce.

    Data Privacy

    Preventing data breaches is the prime priority for eCommerce businesses. The responsibility of building a robust security apparatus for data privacy lies with generative AI in eCommerce. 

    High Investment

    Since generative AI is an emerging technology, AI solutions are largely tailored for businesses. Therefore, building generative AI solutions for eCommerce demands a huge financial commitment.

    Computational Power

    Multi-vendor eCommerce stores require significant computational power. Managing eCommerce operations using generative AI demands much more programmatic power to leverage the full potency of technology. 

    Ethical Considerations

    Authenticity and ownership are critical eCommerce characteristics that may be compromised due to the unethical use of AI. The responsible use of Gen AI for eCommerce is critical for winning customers’ trust. 

    Data Quality

    Accuracy in generative AI for eCommerce is paramount. Therefore, the robust quality of data used to train AI models is critical to obtaining accurate outcomes. Acquiring and managing vast data pools may cause outburn. 


    Building compatible AI solutions and integrating generative AI into eCommerce platforms could be daunting, as legacy systems may resist emerging technologies due to varied frameworks and programming architectures.

    AI Training

    Implementing generative AI in eCommerce needs a workforce with unique skill sets in AI. It also demands changes in organizational structure and business processes. Training employees for a new System is time-consuming.

    Benefits of Generative AI in eCommerce.

    Personalized Shopping Journeys

    Generative AI helps build distinguished and original customer experiences by customizing customer engagements based on their choices. Consequently, the conversion rate improves.

    Dynamic Product Showcase

    Each product has its own identity, and its salability depends on how customers view it. Generative AI helps eCommerce businesses create immersive product visualizations to captivate customers.

    Streamlined Inventory Optimization

    Inventory management is very critical to the profit of the ecommerce store. Generative AI brings efficiency to warehouse operations by managing and maintaining adequate stocks based on market demand. 

    Smart Content Automation

    Generative AI in eCommerce crafts words that precisely align with the brand and convey exactly what customers want to hear from the brand. Create unique and dynamic content to stimulate conversions.

    Customer Service Reinvented

    With generative AI in eCommerce, manual customer service has given way to automation and chatbots. Customers can get their questions answered immediately to build a loyal customer base.

    Tailored Product Customization

    Generative AI enables customers to customize their silhouettes, providing personalized experiences based on their likes and dislikes. Moreover, customers can virtually try their chosen products to get the right feel.

    Cost-Efficient Operations

    Automation, streamlining, and customer satisfaction ensure generative AI for eCommerce turns out to be a cost-effective companion. Generative AI helps businesses manage their resources effectively.

    Precision in Data Analytics

    Empower your business decisions with Generative AI’s accurate data analytics. Gain deep insights, make informed choices, and stay ahead in the competitive eCommerce landscape. Embrace precision for success.

    Use Cases of Generative AI in eCommerce.

    Marketing Campaigns

    Running concentrated marketing campaigns becomes so easy for eCommerce stores with generative AI. eCommerce businesses can target customers with personalized campaigns based on customers’ choices, likes, behaviors, and history. 

    Visual Search

    Smart product recommendations and visual searches have become the most prominent features of eCommerce platforms, thanks to generative AI. Data analytics allows businesses to create visually appealing and similar product listings. 

    Content Generation

    Generative AI empowers eCommerce stores to create write-ups, images, videos, and voices conveniently and to align with brand voice. eCommerce businesses can create influencing narratives through effective storytelling. 

    Conversational AI Chatbot

    AI-powered chatbots instantly respond to customer queries and creatively resolve their problems, enhancing customer satisfaction. These virtual agents utilize NLP, machine learning, and vast amounts of data to answer customers’ questions. 

    Lead Engagement

    Lead retargeting and lead nurturing are tedious jobs as they require a number of follow-ups. Generative AI takes over these repetitive tasks to effectively engage with customers, providing them with vital information and motivating them to buy. 

    Price Optimization

    Generative AI for eCommerce businesses can optimize prices either by predicting the price customers are most likely to buy or by evaluating market demand and trends for a particular product segment to maximize ROI.

    Supply Chain Management

    Inventory and delivery management are critical to the success of any eCommerce store. Generative AI evaluates data with minute precision to predict demand and market trends to scale up or down inventory to streamline supply and demand.

    Fraud Detection

    Generative AI has proven to be the most potent security tool for eCommerce stores. AI scans a vast amount of data to detect any anomaly or data breach in the system and prevent them from causing financial losses to the business.  

    Success Stories of Generative AI in eCommerce.

    Crescent Memorial

    Crescent felt the need for high-quality products at a low price in the funeral home industry and decided to provide customized memorabilia such as Crescent caskets, Crescent marble urns, Crescent life print memorial keepsakes, Crescent life portrait porcelain tiles, Crescent art glass, and many other products.


    Built and deployed a fully optimized mobile solution

    Sigma Solve’s dedicated team built a fully optimized mobile solution. They explored the full potential of Android’s scanning ability and enhanced it to capture clean and clear images of fingerprints. Our AI specialists ensured that scanned images were delivered to Crescent as soon as they were captured.


    Sigma Solve helped the Crescent Memorial.

      1. Generate 42% more revenue.
      2. Increase sales by 58%.
      3. Improve customer retention by 73%.
      4. Enhance customer satisfaction by 88%.

      Pisces Healthcare

      Pisces Healthcare Solutions is a dedicated health equipment company that serves US service members across a broad spectrum. PHS aims to deliver accurate and exceptional healthcare equipment with patients at the center of their business. PSH has expertise in delivering telemedical consultations and maintaining digital health records.


      Developed an AI-powered Order Management Bot

      Pisces HealthCare Solutions’ eCommerce store was inefficient, inadequate, and incapable of managing the order flow. PHS tied up with Sigma Solve to revive their eCommerce store with order processing automation. Sigma Solve suggested a feature-rich eCommerce development platform and a chatbot to read and place orders.


      Sigma Solve helped Pisces Healthcare:

        • Reduce order processing time by 67% with 91% automation accuracy.
        • Increase the number of processed orders from 100 to 250 per day.
        • Save almost 2 to 3 hours per employee every day with RPA.
        • Improve overall efficiency by 78% through nopCommerce migration.

        How do Sigma Solve’s generative AI Solutions Transform eCommerce Businesses?

        Sigma Solve is a US-based enterprise software solutions provider with a proven record in developing, integrating, and maintaining AI solutions. Our two success stories mentioned above showcase our technical competency and capabilities to deliver any AI-empowered solution.


        Sigma Solve has a strategic advantage in the eCommerce segment as we have completed over a hundred digital commerce projects. We are at the forefront of leveraging emerging technologies, be it advanced LLMs, machine learning, or NLP.


        Consult with our eCommerce experts to nurture your business into the future with transformative benefits. For consultations, call us at +1 954-397-0800.

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