6 AI for E-commerce Tips Every CMO Needs to Know in 2025

There is no way you’re a CMO in the e-commerce space and not thinking about combining AI (Artificial Intelligence) in e-commerce! If the past few years have taught us anything, it is this: AI isn’t just a buzzword anymore—it’s the backbone of modern e-commerce. From hyper-personalized shopping experiences to logistics that feel like magic, AI in e-commerce is changing the game. And if you’re not leveraging it, your competitors will. 

There are plenty of AI uses in e-commerce, but let’s focus on six actionable tips to help you harness the power of AI for e-commerce and stay ahead of the curve.  

Personalize Customer Experiences with AI

Here’s the thing: customers don’t just want personalization—they expect it. And if you’re not delivering, they’ll bounce faster than you can blink! 

AI tools for e-commerce, like recommendation engines, analyze customer behavior to serve up products they’ll actually want. Platforms like Shopify AI are making this easier than ever. Think about Netflix or Amazon—they’ve mastered the art of personalization, and their engagement metrics prove it. 

Read about Walmart’s AI-Powered Personalization in Action 

In 2024, Walmart saw a 21% increase in e-commerce revenue, partly driven by its AI-powered product catalog enhancements that enriched over 850 million data points. 

• The company’s proprietary generative AI tools helped refine product recommendations, match customer intent, and elevate the shopping experience.  

• Walmart is also investing in AI-driven hyper-personalization, using GenAI and AR-powered commerce experiences to tailor content and product recommendations across stores and online. 

Here are some top AI-powered personalization tools that can enhance your e-commerce strategy: 

• Insider: A platform that offers advanced website and mobile app personalization, recommendations for products, predictive segmentation, as well as cross-channel customer journey personalization. 
• Braze: This company focuses on personalized messaging across various channels, including email, SMS, and push notifications, enabling brands to deliver tailored content to their users. 
• CleverTap: Provides AI-driven insights for user engagement and retention. They also offer personalized experiences through in-app messages, push notifications, and more. 
• Adobe Target: Part of the Adobe Experience Cloud, it offers AI-powered A/B testing, personalization, and automated decision-making to optimize user experiences. 
• Klevu: Specializes in AI-driven site search and product discovery, improving user experience by delivering relevant search results and personalized product recommendations.  

Dynamic Pricing with AI

We all know that pricing is a nightmare. If you set it too high, and you lose customers. Set it too low, and you’re leaving profit on the table. E-commerce AI solutions to the rescue! 

AI-driven dynamic pricing analyzes market trends, competitor pricing, and customer demand in real time. It acts as your very own pricing strategist working for you 24/7.  

Uber and Airbnb have effectively implemented AI-driven dynamic pricing strategies to optimize their services. 

Uber uses AI to adjust ride fares in real time, taking into consideration factors such as demand, traffic conditions, and driver availability (sometimes to the frustration of customers!). This approach balances supply and demand, optimizes revenue and service efficiency.  

Airbnb employs dynamic pricing algorithms that adjust rental rates based on factors like seasonality, local events, and current demand levels. This strategy helps hosts maximize occupancy and revenue by aligning prices with market conditions.  

For businesses looking to implement similar strategies, there are several AI-powered dynamic pricing tools at your disposal: 

AI Tools to Try:  

• Competera: An AI-driven platform that optimizes pricing by analyzing market data, demand fluctuations, and competitive pricing to recommend optimal price points.  

• Dynamic Pricing AI: Provides advanced data-driven automation, enabling businesses to effectively balance pricing and market positioning.  

• Hypersonix ProfitGPT is an AI-driven pricing and inventory optimization platform that applies machine learning algorithms to historical data and external conditions, delivering actionable recommendations based on probability assessments and simulation data.  

• Quicklizard: An AI-powered pricing tool that analyzes market trends, competitor pricing, and customer demand in real-time, allowing e-commerce businesses to adjust prices dynamically to optimize profitability while remaining competitive.  

• Dealavo: Offers an advanced AI-fueled dynamic pricing feature that provides automatic price adjustments based on the current market situation. Users can set rules for how prices should be adjusted, ensuring strategies align with business goals.  

Visual Search

Visual search is rapidly reshaping product discovery, with Google Lens now processing 20 billion visual searches per month, a significant portion related to shopping. Additionally, 62% of millennials prefer visual search over text-based search, prompting major retailers like Amazon and Google to enhance their visual search capabilities to meet growing consumer demand. Customers can snap a pic of something they like, and AI for e-commerce will find similar products in your catalog. It’s like magic, but better—because it’s real. 

AI Tools to Try:  

• Syte: Specializes in visual search for e-commerce, allowing users to upload images to find similar products, enhancing product discovery and customer engagement. 
• Visidea: Offers a Visual Search Suite that enables users to search for products by uploading photos, streamlining the shopping experience by eliminating the need for keyword searches. 
• Google Lens is a versatile tool that allows users to search using images, providing information and shopping options related to the visual input. 
• Pinterest Lens: Enables users to discover products and ideas by taking photos, facilitating visual searches that connect users to related items and inspiration.

Automate Customer Support with AI Chatbots

Let’s be honest: no one likes waiting on hold. AI chatbots are here to save the day, offering 24/7 support that’s fast, efficient, and (hopefully!) friendly. 

Brands like Sephora and H&M use chatbots to provide personalized recommendations and resolve issues instantly. And the best part? It’s cost-effective. The adoption of AI chatbots is on the rise. In 2024, over 8.4 million businesses utilized voice assistants, reflecting a growing trend toward AI-driven customer interactions.  

AI Tools to Try: 

 Zendesk AI: Enhances customer support with AI-powered solutions, including advanced ticketing systems and automated responses, ensuring efficient issue resolution. 

Tidio: Offers live chat and chatbot automation, enabling real-time customer engagement and support, which can lead to increased sales and customer satisfaction. 

Ada: Provides AI-driven customer support and engagement, allowing businesses to automate interactions while delivering personalized experiences at scale.  

Inventory Management with AI

Inventory management is like walking a tightrope and AI in e-commerce is just the balance you need.  AI predicts demand, optimizes stock levels, and ensures you’re never caught off guard. 

Take Zara, for example. Zara has effectively integrated artificial intelligence (AI) into its inventory management to enhance efficiency and responsiveness. By analyzing sales data and social media trends, AI enables Zara to predict demand accurately, allowing for rapid adjustments to production and distribution. This approach has significantly reduced overstocking and understocking issues, decreased waste, and increased profitability. 

Zara also employs Radio Frequency Identification (RFID) technology to monitor their inventory levels in real-time. RFID tags track garments from the warehouse to the store, providing insights into product movement and sales performance. This system ensures that popular items are restocked promptly, optimizing inventory management and efficiently meeting customer demand. 

AI Tools to Try: 

C3 AI Inventory Optimization: This tool unifies data from various sources and applies AI to generate dynamic reorder recommendations, helping businesses maintain optimal inventory levels and meet service demands.  

Peak’s Inventory AI: Peak offers AI-driven inventory optimization software that assists in managing stock and optimizing inventories, ensuring the right products are available at the right time.  

SkuVault: An AI-powered inventory management tool that provides real-time tracking, demand forecasting, and automated restocking to streamline operations and reduce stockouts.  

Revolutionize Logistics with AI

Logistics can make or break your e-commerce business. AI tools for e-commerce optimize supply chains, predict delivery times, and reduce shipping costs. It’s like having a logistics genius on your team. 

Amazon is the poster child for this, using AI to streamline operations and deliver packages at lightning speed. Amazon employs over 750,000 robots across its fulfillment centers to enhance various aspects of the logistics process, including storage, inventory management, picking, packing, sorting, and transporting packages to loading docks. This extensive automation has significantly improved efficiency and reduced operational costs.  

AI Tools to Try: 

ShipBob: An AI-powered fulfillment and logistics platform that streamlines order processing, inventory management, and shipping, helping businesses optimize their supply chain operations. 

 Locus.sh: Offers AI-driven route optimization and delivery management solutions, enabling companies to plan efficient delivery routes, reduce transit times, and lower fuel costs. 

 Shippo Provides AI-driven shipping and tracking solutions. It allows businesses to compare shipping rates, generate labels, and track packages in real-time, enhancing the overall shipping experience.  

Conclusion

Here’s the bottom line: AI for e-commerce is here and now. You need to start exploring AI tools for e-commerce today. Whether personalization, pricing, or logistics, an AI solution can take your business to the next level. The time is now, and the agency is AdLift.  

FAQs

What is AI in e-commerce?

AI in e-commerce refers to using artificial intelligence technologies to enhance various aspects of online retail, including personalization, pricing, customer support, and logistics. 

How does AI improve e-commerce SEO?

AI-powered e-commerce SEO intelligence tools analyze search trends, optimize keywords, and improve content rankings, helping businesses drive more organic traffic. 

What are some popular AI tools for e-commerce?

Popular AI tools for e-commerce include Shopify AI, Google’s Recommendation AI, and tools like Dynamic Yield for personalization and pricing optimization. 

How can AI help with inventory management?

AI predicts demand, optimizes stock levels, and reduces waste, ensuring businesses always have the right products. 

What are the benefits of using AI chatbots in e-commerce?

AI chatbots provide 24/7 customer support, answer FAQs, and resolve issues instantly, improving customer satisfaction and reducing operational costs. 

How does AI enhance visual search in e-commerce?

AI-powered visual search allows customers to upload images and find similar products, improving product discovery and reducing bounce rates. 

What is the role of AI in e-commerce marketing?

AI analyzes customer data to optimize ad targeting, email marketing, and social media campaigns, ensuring maximum ROI and better engagement.