How AI Search is Transforming eCommerce: The Future of Online Shopping

By: Jonathan Stec

Published: December 13th, 2024

Whether we like it or now, eCommerce is undergoing a revolutionary transformation, and at the heart of this change is artificial intelligence (AI). One of the most significant advancements in this domain is the integration of AI-powered search engines, which promise to reshape the way consumers interact with online stores and how businesses operate. You probably already see the AI summaries on Google, but here is an example (I chose by asking what the largest star in the universe is because I love science, especially astronomy):

But how does this impact eCommerce searchers and advertisers? Here’s how AI search is changing the face of eCommerce:

1. Understanding Consumer Intent

Traditional eCommerce search engines rely on keyword-based inputs, which often yield mixed results. AI-powered search engines, however, leverage natural language processing (NLP) to interpret the intent behind a user’s query. This allows them to deliver more accurate and relevant results, even for complex or ambiguous searches.

For example, a shopper searching for “comfortable shoes for hiking in cold weather” will receive tailored recommendations rather than generic footwear options. This capability not only improves the customer experience but also increases conversion rates.

As an advertiser, you need to provide data to the AI-powered search engines outside of just keywords. We have 3 tips. First, high quality content that provides value is a great start. Second, schema markup aka structured data, will provide much more information to bots crawling your site to feed the AI. And last, make sure your content is “natural language”; in other words it should be easy to read and to understand, not just jumbles of keywords.

2. Visual and Voice Search

AI search is no longer confined to text-based queries. Visual search enables users to upload an image of a product they like and find similar items across an e-commerce platform. Meanwhile, voice search, powered by AI assistants like Alexa and Google Assistant, allows for hands-free shopping. These technologies make online shopping more intuitive, accessible, and user-friendly.

For instance, a customer could upload a picture of a dress they saw on social media and instantly find matching options in an online store. Similarly, someone cooking in their kitchen could reorder groceries by simply saying, “Order more olive oil.”

This means that you should have relevant, quality assets on your product pages, and as many as needed (there is a fine line between over-doing it and under-doing it). Make sure everything has alt tags and other data for bots to read.

3. Hyper-Personalized Recommendations

AI search is not just about retrieving products—it’s about understanding the customer. By analyzing search history, browsing behavior, and purchase patterns, AI algorithms can offer hyper-personalized recommendations. This creates a shopping experience that feels tailor-made for each user.

Personalization drives customer loyalty and increases average order values. For example, after a user searches for “outdoor camping gear,” an AI-powered system might suggest complementary items like portable stoves, sleeping bags, or waterproof backpacks.

This means also trying to “solve problems” with your product pages. So in the case of a waterproof backpack, don’t just describe the product and what makes it great. Try to also create scenarios of how it will be beneficial. An example might be about how the backpack is great for hikes in arid regions or for athletes that play in open fields.

4. Dynamic Inventory and Pricing Optimization

AI search can integrate with inventory management systems to ensure products shown in search results are in stock and priced competitively. It can dynamically prioritize products that are high-margin or those that need to be sold quickly, optimizing both user satisfaction and business profitability.

For example, during peak shopping seasons, AI systems can detect surges in demand for certain items and adjust search results and prices in real time to maximize sales.

Many of the search engines can “scrape” your site for product info to assist with product listings. However, we have found these to not be optimal and can bring down the performance of your campaigns (such as if you have a low-value product that isn’t worth advertising but has high search volume, then it will eat your advertising budget). We highly recommend finding a dynamic solution that allows you to apply filters and send that data to the merchant centers of the search engines.

5. Enhanced Customer Support

AI search isn’t limited to finding products—it also powers chatbots and virtual assistants that help answer customer queries. These systems use contextual understanding to provide accurate and instant responses to questions like “What is your return policy?” or “Do you have this in a size 10?”

This reduces the load on human customer service teams while ensuring that customers receive prompt assistance.

6. Bridging the Gap Between Online and Offline

AI-powered search engines can enhance omnichannel shopping experiences by bridging the gap between online and offline retail. For instance, a customer might use an AI search tool to find a product online, check its availability at a nearby store, and reserve it for same-day pickup.

I think it is safe to say most of us do this. So as an advertiser, make sure you are set up to provide this solution.

7. Data-Driven Insights for Businesses

eCommerce platforms equipped with AI search can analyze vast amounts of data to uncover trends and consumer preferences. Businesses can use this information to refine their marketing strategies, improve product offerings, and anticipate market demands.

For example, an AI system might detect a growing interest in sustainable products and prompt an eCommerce platform to expand its eco-friendly inventory.

Challenges to Consider

While AI search offers numerous advantages, it is not without challenges. Data privacy concerns, potential biases in AI algorithms, and the need for significant investment in technology are some hurdles businesses must overcome. Additionally, smaller e-commerce players may struggle to compete with larger platforms that have access to more advanced AI tools.

Conclusion

AI-powered search is revolutionizing eCommerce by making it more personalized, efficient, and engaging. As these technologies continue to evolve, we can expect a future where online shopping is not only seamless but also deeply intuitive, catering to the unique needs and preferences of every individual.

For businesses, embracing AI search is no longer a luxury but a necessity to stay competitive in an increasingly digital marketplace. By leveraging this transformative technology, eCommerce platforms can unlock new levels of customer satisfaction, drive innovation, and set the stage for the next era of online shopping.

This transformation is just the beginning. With advancements in AI, the possibilities for enhancing the eCommerce experience are boundless.