AI is the next step in the digitisation of e-commerce: Assiduus’ Somdutta

Masaba Naqvi
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Somdutta Singh

Serial entrepreneur Dr Somdutta Singh

New Delhi: Artificial intelligence (AI) has been a transformative force for all industries, revolutionising processes and enhancing capabilities in ways previously unimaginable.


From personalized recommendation systems in entertainment to predictive maintenance in manufacturing, AI has proven its ability to streamline operations, drive innovation, and deliver unparalleled insights. In E-commerce, AI's impact is particularly profound, reshaping how businesses interact with customers, manage inventory, and optimise supply chains.

In fact, the last 4 years have seen a dramatic 270% increase in the number of E-commerce businesses that have adopted AI.

Case in point; AI assisted in analysing more than a million interactions with customers of SHOPIFY, identifying contextual cues for dispatching highly personalised emails. This resulted in a 26% surge in email conversion rates, showcasing the effectiveness of hyper-personalisation.


AI applications in e-commerce

AI-powered chatbots

The soaring popularity of AI chatbots like ChatGPT made generative AI the talk of the town in 2023.


Generative AI is usually what people think of when talking about AI as well. This bodes well for e-commerce for several reasons, because with soaring popularity comes rapid development as well. The chatbot market is also growing at an alarming rate, expanding at a remarkable 23% per year, and is expected to grow to around USD 14-16 billion by 2028 globally.

AI-powered chatbots can not only engage customers in natural, human-like conversations, providing real-time assistance but can also integrate with store operations to provide personalized recommendations based on user data 24/7.

AI-powered chatbots are already being adopted at a rapid rate. In fact, it is estimated that nearly 80% of online users have had an experience interacting with chatbots, and while not all of these are on e-commerce sites, close to 70% of them were estimated to be retail- based in 2023.


AI-powered chatbots have drastically increased customer satisfaction by decreasing the time it takes online retailers to respond to user queries. As LLMs get better, the quality of chatbots is going to drastically increase as well.

AI-powered returns and exchange solutions

Providing a seamless returns and exchange process is essential for customer satisfaction and loyalty in the world of e-commerce. AI-powered returns and exchange solutions are revolutionizing the e-commerce landscape, offering innovative ways to streamline the post- purchase experience for both retailers and customers.


As of now, an estimated 60% of returns and cancellations are resolved by AI-powered digital assistants and chatbots. One of the bigger advantages of AI-powered digital assistants and chatbots is that online sellers can harness the power of AI to scale their brands while minimizing the costs associated with returns. They can also assist in fraud prevention, which is common in e-commerce returns. By automating the returns process end-to-end, AI not only reduces the administrative burden on e-commerce businesses but also expedites resolution times, leading to greater customer satisfaction. 

AI-powered pricing optimisation

The competitive nature of e-commerce also calls for certain actions that are critical for maximising profitability and staying ahead of the competition. Pricing optimisation is one of those actions, but getting the right pricing might be difficult without AI tools.


AI-powered pricing optimisation solutions leverage sophisticated algorithms and data analytics to dynamically adjust prices in real-time based on various factors such as demand, competition, and customer behaviour. By analysing vast amounts of data, including historical sales data, market trends, and competitor pricing, AI algorithms can identify pricing patterns and opportunities for optimisation.

A major advantage of AI tools is that they allow for dynamic pricing strategies, where prices can be adjusted dynamically based on factors such as time of day, day of the week, or even individual customer preferences. 

Lead engagement and retargeting

Lead engagement involves interacting with potential customers to build interest and trust in your brand or product. AI-powered chatbots and email marketing campaigns can help businesses engage in leads by providing personalised recommendations, answering queries, and offering promotions based on customer preferences and behaviour.

Retargeting, on the other hand, focuses on re-engaging leads who have shown interest in the past but have not yet made a purchase. AI can analyse customer data to identify these leads and deliver targeted ads or messages t encourage them to complete their purchase.

Furthermore, some studies have shown that AI-powered marketing strategies for lead engagement and retargeting can increase customer retention by nearly 30% and drastically increase conversion rates.


The adoption of AI in e-commerce is only going to increase as the tech improves. With advancements in AI algorithms, natural language processing, and machine learning, the capabilities of AI-powered solutions will continue to evolve, offering even more sophisticated and personalised experiences for both retailers and consumers.

Moreover, as e-commerce businesses recognise the tangible benefits of AI, such as increased efficiency, enhanced customer satisfaction, and improved profitability, they will increasingly invest in AI technologies to gain a competitive edge in the market.

(Dr Somdutta Singh is a Serial Entrepreneur, Founder and CEO Assiduus Global Inc, LP Angel Investor, Author and Ex-Member of Niti Aayog)