With statistics predicting a 39% worldwide growth in global ecommerce sales by 2027, the industry is poised for a significant boom. A leading factor, positioning this growth is the use of Generative AI — top players such as Amazon have used Gen AI to support customers in easily finding products and increase flexibility for sellers.
Projections for Gen AI in the ecommerce industry have shown that it is expected to deliver a value of $400bn to $660bnn a year. The benefits of deployment include enhanced customer experiences and the optimisation of omnichannel operations.
In 2024 Gen AI set a high bar and shaped a lot of online retail features. Over the next 12 months Gen AI will continue transforming the retail landscape, driven by the adoption of more advanced models that deliver improved results and content for brands. However, in order for GenAI to be successful, we need to ensure AI can be trusted, so that predictive analytics can be delivered and the retail industry can be supercharged, writes Troy Cox, chief product officer at BigCommerce.
The importance of building a trustworthy AI
Despite the many benefits Gen AI can bring to a business, retailers remain very aware that it occasionally also makes mistakes and provides inaccurate information. This is why we will continue to see debates around how to best apply AI and do so ethically, reducing the potential negative implications of any AI-generated error.
Introducing a trustworthy AI application starts with defining clear objectives and tasks for the model to accomplish – whether its task is to write content or answer customers’ queries. The more specific the use case is, the harder it will be for the AI to make mistakes, and the easier for the human in the loop to spot any that do occur. It is also very important to ensure the dataset the AI model is trained on is high-quality, accurate and diverse, and that the data is being regularly monitored for biases or outdated information that might skew results. Maintaining customer trust starts with data, which then enables AI to provide trustworthy responses.
Looking ahead to the power of predictive analytics
As technology and innovation keep improving the buying experience, customer expectations will continue to rise around everything from a seamless shopping journey to personalised product recommendations. Over the next 12 months, AI-powered predictive analytics will play a key role supporting retailers in their efforts to keep customers returning to their marketplaces.
AI and predictive analytics will help streamline operations, reduce costs and improve the buyer’s experience. For instance, AI can be used on large data sets to recommend optimal pricing, as well as streamline the B2B quoting process, therefore dramatically reducing the time a sales representative would need to respond to quote requests from clients. Similarly, the technology can provide businesses with data about the amount of product stock needed for a future campaign.
The integration of AI with composable strategies
We will also see brands take a modular approach to building and managing ecommerce platforms by combining AI and a strong composable strategy.
This approach will allow companies to pick and combine different technologies to create a custom ecommerce solution tailored to their specific needs. Instead of being constrained by generic platforms, businesses will have the flexibility to select the precise components – such as the storefront, checkout process, and inventory management – that best suit their operations and customers.
This trend toward increased customisation and adaptability in ecommerce is driven by the integration of AI capabilities and a composable architecture. It represents a shift away from one-size-fits-all platforms toward more personalised, optimised online shopping experiences.
In a nutshell, a composable model allows brands to choose the best components to assemble their tech stack. As AI is a rapidly evolving technology, a composable strategy allows them to easily upgrade these components in the future as their needs change or AI technology evolves.
Boosting the retail industry with Gen AI
The retail industry is set for an eventful 2025, with Gen AI’s ongoing implementation set to make a major impact. The increased capabilities within the industry, such as predictive analytics, and the integration of composable strategies are only going to allow the sector to go from strength to strength too.
Troy Cox, chief product officer at BigCommerce
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