With Gen AI grabbing most of the headlines these days, it has already started making its way into many businesses & industries to stay ahead of the curve. By 2026, over 80% of businesses will have used some form of artificial intelligence, according to Gartner (up from 5% in 2023). Gen AI is a subset of AI that generates new data or content based on the deployed machine learning algorithms & the data it has been trained with. Given the complexity with which its implementation is dealt with and the challenges an organization has to potentially face, below are the 4 specific areas where gen AI can be leveraged to accrue some quick business benefits in the e-commerce domain.

Personalization: According to the BCG survey, 67% preferred using Gen AI for personalization. Ecomm Businesses stand to gain a lot from using Gen AI to deliver clients a high level of personalization in terms of relevant ad display and product suggestions based on browsing and purchasing history. Emails from personalized marketing are delivered with the customer's current funnel stage in mind. Amazon’s revenue shot up by 30% when it introduced the product recommendation engine. Personalization is one of the low-risk areas that Ecomm companies can explore to gain enormous benefits.

Enhancing Customer Support: By offering auto-generated responses, translating discussions as needed, and building sizable response libraries for frequently asked questions, Gen AI increases productivity in the customer care area and even manages high volumes of customer support requests. Using AI-powered solutions like Forethought, built on LLM (Large Language Models), companies like Upwork & Instacart have experienced a 77% reduction in customer support response times.

Product Descriptions: Product Descriptions are the key to up your conversion rates. When making an online purchase, over 87% of consumers cite product descriptions as a major factor. Businesses can drastically cut down on time and effort while producing SEO-optimized content that is engaging, distinctive, and speaks to customers' emotions by using tools like text.cortex and ShopifyMagic.

3D Product Catalog: Ecomm players have witnessed that displaying products in 3D has increased Customer’s confidence & has improved conversion rates. Gen AI can convert text or 2D images into 3D within seconds, uploading the Product catalog 80% faster than before. For example, Curie, which delivers high-quality 3D models from your existing product photos can help businesses create their catalog’s time to market and enhances customer’s buying experience with these 3D images.

Having said that, there are still a few ethical issues and constraints that businesses must carefully evaluate, such as data privacy, integrity, and scalability—a complex subject best left for another time. Since it comes with its own set of challenges, gen AI should be leveraged by businesses to solve quantifiable customers’ problems & improve business metrics rather than merely utilizing it to acquire traction at the expense of marginal gains. While the adoption of gen AI is still in its nascent stage, the overall future prospects look promising.

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