AI in E-Commerce Statistics

What are the latest AI trends in e-commerce in 2024?

Did you know that the global market for AI in retail is expected to increase to $31.18 billion in 2028?

Crazy, right?

Currently, over 50% of e-commerce businesses have adopted AI technologies to enhance their operations.

This is a SIGN that there’s a future for AI in e-commerce. And I’m very excited about this!

With the help of AI technology, e-commerce platforms are becoming more innovative, more personalized, and more efficient than ever before! The possibilities seem endless, from chatbots providing instant customer support to AI algorithms predicting consumer preferences. 

Want to discover how AI is shaping the future of online shopping, enhancing customer experiences, and revolutionizing how businesses operate?

In this article, I gathered the most intriguing AI in e-commerce statistics to help improve your e-commerce business in 2024. 

🔑 Key AI in E-Commerce Statistics:

  • Over 50% of e-commerce businesses have adopted AI technologies to enhance their operations.
  • AI-driven personalized recommendations contribute to a 15-20% increase in conversion rates.
  • 40% of consumers do not care whether a chatbot or a real human helps them as long as they get the help they need.
  • AI is believed to help retailers save up to $340 billion annually.
  • 80% of customers say they are more likely to do business with a company if it offers personalized experiences.
  • More than half of consumers say they will likely become repeat buyers after a personalized shopping experience with a retailer.
  • 8 out of 10 companies have already implemented or plan to implement AI as a customer service solution.
  • The improved accuracy led to a 65% reduction in lost sales and a decrease in warehousing costs by 10% to 40%.
  • 80% of executives agreed that AI automation can be applied to any critical business decision.
  • AI can potentially lower client acquisition costs by up to 50%.

General AI in E-commerce Statistics

1. Although the global market for AI in retail was worth $4.84 billion in 2021, it is projected to increase to $31.18 billion in 2028. 

(Statista)

2. 61.4% of marketers have used AI in their marketing operations. 

(Influencer Marketing Hub)

3. According to a report by Barilliance, personalized product recommendations can drive up to 31% of e-commerce site revenues

(Barilliance) 

Personalized recommendations are tailored to a customer’s behavior and profile, making them more engaging and relevant. By displaying personalized recommendations, you can encourage customers to explore more products, make additional purchases, and return for more shopping in the future. 

If you’re an online store owner, it’s worth considering personalized product recommendations as a powerful tool to drive revenue and enhance your customers’ shopping experience.

4. According to McKinsey, AI-powered forecasting can reduce errors by 30% to 50% in supply chain networks. 

(Mckinsey) 

The improved accuracy leads to a 65% reduction in lost sales due to inventory out-of-stock situations, and warehousing costs decrease around 10 to 40%. This means businesses can predict things like demand and inventory way better. 

By making fewer mistakes, you can avoid running out of stock, losing sales, and other supply chain problems, which makes everything work better. 

It also means you can save cash on things like managing stock and moving stuff around, and can make customers happier by giving them what they want when they want it. 

AI-powered forecasting can help businesses reduce inventory costs by up to 75%, improve on-time deliveries by up to 85%, and increase revenue by up to 10%

5. AI-powered product recommendations are highly influential on consumers’ purchasing decisions. 

(Scispace) 

AI-powered product recommendations are becoming increasingly important in shaping consumer behavior. These recommendations are personalized based on individual preferences, past purchases, and browsing history, leading to increased customer satisfaction and loyalty.

According to a study, 63% of consumers find these recommendations important, highlighting their influence on purchasing decisions.

The impact of AI on consumer behavior is evident in the level of personalization, customer satisfaction, and the influence on purchasing decisions. 

This ultimately shapes the future of consumer expectations and interactions with businesses.

6. A report finds that 83% of consumers worldwide would browse or buy products in messaging conversations. 

(PRNewswire)

The desire for conversational commerce is at an all-time high, and shoppers worldwide want businesses to continue to shift their customer care, sales, and marketing tactics toward messaging channels.

The report surveyed over 5,000 participants worldwide and found that consumers are looking to browse and buy through messaging.

Most people are comfortable using messaging apps to shop or browse for things they want to buy.

7. AI has the potential to enhance customer happiness and satisfaction through functions that customers can engage directly with. 

(BairesDev) 

AI can enhance customer happiness and satisfaction by providing functions for direct customer engagement. 

It can analyze customer behaviors, automate processes, and offer personalized recommendations, leading to tailored and proactive customer experiences. 

By embracing AI with an ethical and human-centric approach, businesses can shape a future that understands and caters to consumer needs. 

8. The size of AI in the e-commerce market is expected to reach $14 billion. 

(Globe Newswire)

It’s projected to grow even further in the coming years. This growth is driven by the rising demand for personalized shopping experiences, inventory management, supply chain optimization, and customer service automation. 

AI technology enables businesses to analyze large datasets, segment customers, and provide targeted and personalized marketing, leading to more interactive and engaging shopping experiences. 

Additionally, AI-powered inventory management systems help improve stock control and customer satisfaction, while AI-enabled logistics systems enhance conversion rates and reduce delivery times. 

9. The worldwide warehouse robotic market was valued at $6.1 billion in 2022. The market is expected to grow to almost $16 billion by 2030

(Statista) 

10. Due to technology integration, 43% of companies plan to reduce their personnel. 

(Weforum)

Technology integration has revolutionized how HR manages talent, engages employees, and drives organizational success. 

It has simplified administrative processes, enabled HR teams to make decisions based on data, and significantly improved compliance management. 

Collaboration technologies can help reduce employee burnout and enhance work-life balance by enabling remote work and providing access to collaboration tools. 

11. The Indian AI market in retail and e-commerce is expected to reach INR 16,929.87 million by 2028. 

(PR Newswire)

12. Some 43% of Baby Boomers did not wish for AI personalization of their customer journey. 

(Statista) 

13. 34% of businesses plan to expand their workforce due to technology integration. 

(Weforum)

14. 10% of companies are expected to invest in AI-driven digital content creation over the next year. 

(Forrester)

AI revolutionizes the content creation process by automating content generation, idea generation, optimization, etc. 

It allows businesses to improve their content’s quality, reach, and effectiveness, giving them a competitive edge in the ever-evolving digital landscape. 

15. 64% of businesses expect that AI will increase productivity. 

(Forbes)

Generative AI can improve users’ performance by 66% on average. 

Generative AI and other technologies are projected to help accelerate productivity growth, potentially adding trillions of dollars. 

Furthermore, a study suggests that even in the early days of generative AI, productivity gains are already being seen, with a 14% boost in issues resolved per hour.

16. A McKinsey study found that nearly 65% of companies plan to increase their investment in AI technologies over the coming three years. 

(McKinsey)

17. 41% of businesses plan to expand their use of contractors for task-specialized work. 

(Weforum)

18. 78% of eCommerce brands have already implemented AI in their stores or plan to do so. 

(Forbes)

AI-powered solutions are used in various aspects of eCommerce, including inventory management, supply chain operations, customer service, and marketing. 

AI can help businesses personalize their approach to customers, optimize inventory levels, reduce costs, and enhance overall efficiency. 

The rise of AI in eCommerce is backed by impressive statistics, with the AI-enabled eCommerce market size projected to reach $16.8 billion by 2030, growing at a rate of 15.7% CAGR in the next eight years. 

19. 76% of marketers have begun using automated tools powered by artificial intelligence for crafting engaging content across various platforms. 

(Insider Intelligence)

AI content creation tools can generate variations of short-form copy, suggest ad copy, and more. 

It’s important to note that AI tools for content creation don’t work in a vacuum and need human training to achieve the best results. 

These tools use natural language processing and machine learning to produce text-based or visual content. 

Examples of AI content creation tools include Copy.ai, JasperAI, and OwlyWriter AI.

20. Personalization makes 28% of buyers more likely to buy a product they didn’t mean to buy. 

(Slideshare)

21. 83% of executives believe AI is a strategic priority for their businesses today. 

(Cisco)

22. 75% of executives say AI will allow them to enter new businesses and ventures. 

(Cisco)

Artificial Intelligence (AI) is transforming the way businesses operate daily. 

AI-powered tools and software can perform tasks that must be done daily, freeing employees to focus on more complex and creative work that needs a human’s attention. 

AI has various uses in various industries, including healthcare, e-commerce, financial services, marketing, agriculture technology, customer support, education, and cybersecurity. 

As AI technologies proliferate, they are imperative to maintaining a competitive edge. 

23. 84% of executives say AI will enable them to obtain or sustain a competitive advantage. 

(Cisco)

24. AI technologies are projected to increase business productivity by up to 40% in 2035. 

(Cisco)

25. Artificial intelligence is now utilized by 80% of high-performing field service businesses. 

(ZDNet)

26. 95% of recruiters believe AI can greatly enhance talent acquisition and retention. 

(Cisco)

AI works wonders for talent acquisition and retention. It makes the hiring process smoother, keeps employees more engaged and satisfied, and helps companies understand and meet their employees’ needs. 

However, addressing potential ethical issues, bias, and legal risks associated with AI in talent management is essential. 

27. AI can potentially lower client acquisition costs by up to 50%. 

(MarketingInAsia)

28. A LinkedIn survey reports that over the past five years, career shifts into data and artificial intelligence are 50% from different fields. 

(Weforum)

Many people are transitioning into data and AI roles from other areas like marketing, finance, or sales. 

The survey reflects a global trend of professionals embracing AI, with 89% of respondents excited to use AI and 57% wanting to learn more about it. 

The rise of AI is also leading to a significant shift in the job market, with a predicted 65% change in job skills by 2030 due to AI. 

As AI continues to reshape workplaces, the skills required for jobs are evolving, and professionals are responding to this shift by acquiring AI-related skills and knowledge.  

29. In 2020, 8 out of 10 businesses adopted AI as a customer service solution. 

(Cisco) 

30. 35% of companies already use AI in their businesses, and 42% explored AI in 2022. 

(Tech Jury)

31. AI-enabled eCommerce solutions are estimated to be a US$ 16.8 billion market by 2030. 

(Forbes)

32. In 2021, about 70% of e-commerce executives in Europe and North America believe AI will help them with personalization. 

(Statista)

Also, 54% of the surveyed executives say they want AI to help in site search. Only 4% did not believe that AI would help their business. 

33. 50% of surveyed online shoppers say they want to increase their online shipping experience regarding price comparison. 

(Statista)

34. Up to 58% of Millennial online shoppers and over 40% of Gen X and Baby Boomers combined with e-commerce retailers will personalize product recommendations. 

(Statista)

35. In China, e-commerce retailers like Taobao and Tmall merchants can use AI to generate product images in seconds. 

(Alizila)

AI Contribution to E-commerce Sales Statistics

36. AI has the potential to generate $2.2 trillion in additional value by 2035. 

(Intersog)

By leveraging AI, retailers can streamline inventory, automate warehouse management, and provide highly immersive and engaging shopping experiences. 

AI can also help sales managers better predict quarterly sales figures, leading to less waste and more cost-effective up-selling and cross-selling to existing customers. 

AI-generated language that applies emotion-aware drivers can unlock greater insights into how customers interact with brands. 

Recent innovations in generative AI offer a solution to the age-old e-commerce problem of high cart abandonment rates. 

37. 79% of respondents stated that integrating AI into marketing and sales has increased business revenue. 

(Kimp)

Enterprises were able to generate at least 20% additional revenue.

AI has been used to automate tasks, personalize outreach, identify the best leads, and devise personalized messages tailored to various marketing and sales materials. 

This has led to improved efficiency, increased productivity, and better decision-making, ultimately contributing to revenue growth. 

38. AI is projected to boost sales by 59% in product recommendations in the e-commerce sector. The global AI-powered e-commerce market is anticipated to reach $22.4 billion by 2023. 

(Emizentech) 

39. The use of AI in sales and marketing is becoming increasingly important, with 84% of marketers reporting the use of AI today. 

(Hushly)

40. The AI-enabled eCommerce market size is projected to reach $16.8 billion by 2030, growing at a rate of 15.7% CAGR in the next eight years. 

(Forbes) 

41. AI-driven personalized product recommendations led to a 26% increase in conversion rates. 

(The Good)

42. Research by Evergage suggests that AI-driven product recommendations can increase average order value (AOV) by 26%. 

(LinkedIn)

This means that when online stores use AI to suggest products to customers, the customers tend to spend more money on each order. 

For example, if you were buying a pair of shoes, the AI might suggest a matching bag, and you might buy both, increasing the overall amount you spend. 

This is great for businesses because they can make more money from each customer. 

The research also shows that personalized product recommendations can lead to a 176% increase in conversion rates and account for 35% of Amazon’s revenue, highlighting their impact on driving higher AOV. 

43. A study by McKinsey reports that personalized recommendations account for 35% of Amazon’s revenue. 

(LinkedIn)

44. Personalized product recommendations can lead to a 176% increase in conversion rates compared to non-personalized recommendations. 

(LinkedIn)

45. Worldwide voice-assisted e-commerce sales will hit $4.6 billion this year and then quadruple to $19.4 billion by 2023. 

(Insider Intelligence)

46. AI solutions can help companies increase profits by more than 15% while keeping their revenues the same. 

(Revechat)

47. According to a report by McKinsey, successful personalization resulted in 20% higher customer satisfaction, sales conversion rates, and employee engagement. 

(McKinsey)

48. Only 41% of UK shoppers think AI positively impacts retail.

(E-commerce News)

AI Contribution to Customer Service Statistics

49. AI-powered chatbots can answer thousands of customer queries, reducing resolution time to 5.4 minutes from 38 hours. 

(HappyFox)

AI-powered chatbots transform customer service by offering instant support and reducing resolution time from 38 hours to just 5.4 minutes. 

They use conversational chats and preset responses to handle queries, freeing up human agents for complex issues and improving efficiency and customer satisfaction.

50. 72% of business leaders say expanding their use of AI and bots across the customer experience is a priority over the next 12 months. 

(Zendesk)

51. Since implementing Zendesk, its resolution time has increased by 17% and reply time by 14%, says Photobucket. 

(Zendesk)

Photobucket, a photo-sharing platform with over 100 million users, used Zendesk AI to create a bot that provides 24/7 member support with messaging. 

While this has reduced their annual tickets by 30%, it has also increased resolution and reply times. 

The company is committed to delivering the best overall experience to its members, and the Zendesk messaging solution has made it easier for members to contact them.

52. 61% of customers prefer faster AI responses than waiting to speak to a customer support agent. 

(Intercom)

53. 50% of customer queries are automatically resolved by some of the most powerful bots on the market. 

(Intercom)

54. 58% of support leaders have seen improvements to their CSAT scores due to using AI and automation. 

(Intercom)

More than half of the leaders who implemented AI and automation in their customer support processes noticed a positive impact on their CSAT scores. 

CSAT scores measure customers’ satisfaction with a company’s products, services, or support. 

The use of AI and automation can lead to more efficient and effective customer interactions, quicker issue resolutions, and the ability to focus on activities that create additional value for customers. 

55. 62% of customer service specialists believe that AI/automation tools help them understand their customers. 

(Hubspot)

56. Successful personalization initiatives can result in 20% higher customer satisfaction, sales conversion rates, and employee engagement. 

(Mckinsey)

57. AI-powered customer service automation is projected to increase at a compound annual growth rate of 58.5% and to be valued at $1 billion. 

(Revechat)

AI-powered customer service automation is a rapidly growing technology that is expected to be worth $1 billion, with a projected compound annual growth rate of 58.5%.

This is because it offers faster response times, improved accuracy, efficient handling of common inquiries, and a better overall customer experience.

58. Servion Global Solutions predicts AI will power 95% of all customer interactions by 2025, including live telephone and online conversations. 

(Revechat)

59. Companies are reducing their cost of providing customer service by up to 80% by providing chatbots. 

(Revechat)

60. 71% of customers expect personalized company interactions, and 76% get upset when this doesn’t happen. 

(McKinsey)

61. 65% of customer service tasks are automated. 

(Gorgias)

62. 35% of online shoppers find AI-shopping assistants interesting as they help consumers discover new products and services. 

(Statista)

63. Although only 31% of U.K. online shoppers can differentiate between humans and AI chatbots, 91% would rather interact with humans than AI. 

(E-commerce News)

64. Over 5 million people have used Taobao’s generative AI chatbot. 

(Alizila)

FAQs About AI in E-Commerce

1. What is the Size of the E-commerce AI Market?

According to various sources, the global artificial intelligence in e-commerce market size was valued at USD 5.81 billion in 2022 and is expected to reach USD 22.60 billion by 2032.

2. How is AI Changing the E-commerce Scenario?

AI can help businesses provide better customer service, make more accurate business decisions, and streamline operations. 

AI can also optimize inventory management, identify optimal pricing, and make site search smarter.

AI can handle up to 80% of all customer interactions, reducing operational costs. The global AI-powered e-commerce solutions market will reach $16.8 billion in 2030. 

3. What are the Risks of AI in E-commerce?

The risks of AI in e-commerce include data privacy and security concerns, potential bias in AI algorithms, job displacement, and lack of customer trust. AI systems collect and process vast amounts of customer data, raising concerns about privacy and data protection

4. How Do I Implement AI in E-commerce?

  • Create customer-centric search, Retarget potential customers, Identify exceptional target prospects, Create a more efficient sales process, 
  • Create a new level of personalization across multiple devices, 
  • Provide a personal touch with chatbots, 
  • Empower store workers, 
  • Implement virtual assistants, 
  • Integrate with everyday household items
  • Improve recommendations for customers
  • Introduce virtual personal shoppers
  • Work with intelligent agents
  • Build an ‘assortment intelligence’ tool
  • Bridge the gap between personalization and privacy

5. How Does AI Work in Online Shopping?

AI in online shopping uses machine learning to analyze customer behavior, provide personalized recommendations, and automate tasks such as customer support and sales processes. 

It enhances the shopping experience, improves customer interactions, and offers features like virtual assistants, chatbots, and voice search. 

AI helps businesses understand customer behavior patterns and identify high-value customers, ultimately optimizing the online shopping experience and increasing sales.

6. How is Shopify using AI? 

Shopify utilizes AI through Shopify Magic, a suite of free AI-enabled features integrated across its products. 

This includes automatic text generation, which uses AI to generate content such as product descriptions, email subject lines, and blog posts. 

AI technology analyzes provided information to offer contextually relevant support for tasks related to store building, marketing, customer support, and back office management. 

Additionally, Shopify has introduced AI features like Sidekick, an AI-enabled commerce assistant, to enhance the e-commerce experience. 

Final Thoughts on AI in E-commerce Statistics

These AI in e-commerce statistics prove that AI will be the superhero of E-commerce in 2024. The integration of AI in e-commerce will make the shopping process better for customers and help businesses run smoother. 

As we move forward, using AI isn’t just a trend – it’s a big deal that pushes E-commerce into exciting new territory. To succeed, businesses need to be friends with AI, adapting and making the most of what it can do. 

The future of online shopping is tied to how well businesses and AI work together, and those who figure that out are set for success in the years ahead.

If you are an online store owner, consider using AI to make your customers have a seamless online shopping experience. 

Sources & References:

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