How AI and Automation is Revolutionising the face of Indian Ecommerce

According to research firm Gartner, “At least 50% of global companies would use AI-related transformational technologies in supply chain operations by 2023 and by 2025, at least 90% of new enterprise apps will have embedded AI capabilities”. Several e-commerce businesses today are turning their trust towards machine learning in AI, and the reasons are to improve their platforms into newer, smarter versions which would provide an enhanced customer experience and increased efficiency. 

Indian E-commerce companies are using artificial intelligence to provide a more satisfying experience to their shoppers, improve productivity and increase their sales. Below are the ways in which Artificial Intelligence and Automation is revolutionising Indian E-commerce: 

Personalised Recommendation: Many of the leading E-commerce businesses are using AI to provide a personalised product recommendation for their shoppers, by using AI and machine learning algorithms E-commerce platforms can predict the behaviour of the shoppers based on their past likings, searches, and frequently bought products. By using these insights E-commerce businesses can provide an enhanced user experience and increase customer retention rate. 

Image Powered Search: By using AI and Machine learning algorithms shoppers can search for products by images, this process eliminates the need for keyword searches. Shoppers can upload product images of their choice, and then the ecommerce platform will find the relevant products using AI. This process simplifies the shopping experience for shoppers and will help them find products with speed and efficiency.

Voice Powered Search: In addition to searching products through images, shoppers can now easily search products through their voice, as voice recognition accuracy has improved. E-commerce platforms are enabling voice search features for their customers, as they understand that people expect quick results for their searches and voice searches are the way to go. 

Inventory Management: Inventory management is one of the essential areas of any business. By using Machine learning and AI-based techniques, companies can get insights from previous years sales trends, anticipated changes in product demands and solve the problems of under or overstocking of inventory. 

Virtual Assistant/Chatbot: Many E-commerce platforms are using Virtual Assistants, which can assist shoppers in making smart decisions about their shopping, they are getting more intuitive and are enabling a better customer experience. Apart from providing customer support, chatbots are enhancing the impact of AI in E-commerce through voice-based interactions with shoppers using NLP, Self-learning capabilities and addressing consumer needs more efficiently.

Enhanced Cybersecurity: Artificial Intelligence enables e-commerce platforms to prevent fraudulent activities as they are able to analyse millions of events and identify many different types of malicious red flags activities. AI becomes increasingly capable with the amount of data they analyse, which makes them more autonomous as they go. 

Catalogue creation: Artificial intelligence is being used for creating catalogues, around 98% of the brands find it tough to create quality catalogues. As the complexity in creating unique catalogues for each marketplace is high and AI can help brands create more better, more attractive and more engaging catalogues. 

Demand Forecasting: By using historical data and predictive analysis in AI, organisations can better estimate all the factors which can work towards precision in demand forecasting. So that the organisation can focus on producing more products in demand and thereby leading to decrease in inventory out-of-stock situations, decrease in warehousing costs, and decrease in supply-chain administrative costs. 

Automation: Artificial Intelligence has enabled organisations to automate essential repetitive functions, which can save 25-40% costs on average per order on daily onboarding, account management, finance and supply chain functions. 

Data Collection and analysis: E-commerce has to deal with a lot of data every day, by using Artificial Intelligence organisations not only can collect this data in a more structured form but also generate more insights and can find out more about competitors, marketplaces, and products which in turn will drive higher sales and enhance the customer experience. 

Supply Prediction: Organisations can leverage Machine learning and AI-based techniques that use complex algorithms, structured and unstructured data which can be used to interpret the arrival time of supplies, which will allow the organisation in taking preventative measures to decrease the impact of shortages, reduce the cost, provide proper warehouse and inventory based management. 

Order Fulfilment: In today’s competitive world, businesses have to deal with a high volume of sales orders every day and brands need to hire or train staff every time they add a new channel of sales. Many organisations are leveraging Artificial Intelligence and Automation to automate the process of order fulfilment, listing, inventory update, etc. 


To succeed in today’s competitive world, several E-commerce platforms are blending digital and human capabilities with proper planning to provide an efficient personalised experience for their customers. 

As we move into the future, having the right machine learning and AI technologies can help Indian E-commerce to be prepared for the Global market like never before.

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