Artificial intelligence (AI) has proven its significance in various fields. From content generation to performing Google searches, it simplifies daily operations and leaves no room for a generic approach. Do you need a unique image? Ask AI tools like Midjourney to generate it and get dozens of variants to suit your needs. Do you need a content plan? Integrate ChatGPT and similar solutions into your business.

But what can you gain from AI if you’re an online store owner? What capabilities can you unleash if you run a Magento online store? This article will answer these questions and demonstrate how AI can transform shopping experiences.

Understanding the Basics: An Overview of AI in E-Commerce and Magento

When we say “AI,” we’re not referring to robots taking over the world. We mean more practical applications. In e-commerce, AI is an online assistant that works 24 x 7. The technology gathers, processes, and analyzes information to make predictions or decisions. It mimics human behavior and assists users by displaying personalized results and businesses by automating different activities.

It’s like when you walk into your favorite coffee shop, and the barista, having seen you a hundred times, knows what you’re about to order. AI uses huge volumes of data to predict what you’re looking for or may be interested in. It aims to make online shopping not just convenient but memorable.

On the other hand, Magento is a platform businesses use to set up online stores, similar to Shopify, WooCommerce, Prestashop, and others. Its versatility and robustness set Magento apart in a sea of e-commerce platforms.

It’s an open-source solution, allowing you to customize website components, add unique functionality, and improve user experiences in any way possible. For example, you can take Magento page speed optimization steps to make your store lightning-fast or convert it into a progressive web application.

Magento’s got you covered whether you’re a mom-and-pop store or sprawling enterprise. It’s built to scale, which means as your business grows, Magento expands with you and supports advanced features and capabilities.

What’s more, Magento now belongs to Adobe. This ecosystem provides access to its technology like Adobe Sensei, an AI and machine learning (ML) tool, and AI-powered extensions like Magento Product Recommendations. As a result, it hosts online stores and empowers them with predictive, personalized shopping experiences for every user.

The Importance of AI in Magento: Why Should Retailers Care?

The Magento 2 platform has considerable AI potential. It has several features, including those related to customer support, payments, advertisements, finalizing future company plans, and others.

In addition, Magento-powered retail stores can quickly integrate AI applications at any time and anywhere with the assistance of skilled Magento developers. What for? Here are the advantages of using AI.

  • Streamlined customer experiences: AI powers features like image and voice search. It ensures shoppers easily find what they want without even typing their requests. It guides visitors through their journey, increasing the average order value and conversions.
  • Efficient operations: An e-commerce platform is like an engine. The smoother it runs, the better its performance. AI helps Magento stores operate steadily, cutting down glitches, predicting issues before they crop up, and ensuring all backend operations get together seamlessly.
  • Personalized marketing: AI can help if you want to give a discount to the right user or show a “You May Also Like” section. It tailors marketing efforts, ensuring shoppers see relevant and curated items.

But it would be wrong to say that AI is flawless. It presents some challenges to be prepared for, including:

  • Learning curve: AI requires technical knowledge, so you need to invest in proper training.

Implementation expenses: AI may scare away retailers due to its initial cost. However, you must look at the bigger picture, such as long-term benefits and returns on investment (RoIs).

5 Ways to Use AI in Magento to Boost Sales

1. Enhancing Shopping Experience

Shopping experience denotes all the emotions customers feel when browsing your website and purchasing products. It encapsulates:

  • How fast they can find desired items
  • Whether the product catalog is convenient
  • How many steps it takes for them to order products

That’s where AI can step in to perform some tasks. Take virtual product try-ons as an example. Have you ever refused to purchase online because you didn’t know how the item would look on you? It’s a common scenario in online retail, making it less appealing than offline shopping.

With AI, you can introduce a virtual try-on feature to let customers see a product before buying it. That reduces the number of returns and complaints after receiving orders. An example is the Lenskart online store, which offers the ability to try on eyewear.

enhance shopping experience

Screenshot taken on the official Lenskart website

Another possible source of frustration when on an e-commerce website is the search functionality. Suppose you type “summer evening wear,” but you get a message saying “Nothing Found,” or the results are irrelevant items like boots or swimsuits.

AI can analyze context and power Magento search to understand user intent. In our “summer evening wear” scenario, AI can fine-tune the results to present clothing appropriate for nighttime occasions rather than bombard you with all summer items. Using AI is like seeing through customers’ eyes, detecting their pain points, preferences, and dislikes.

2. Streamlining Operations

AI isn’t only about boosting sales and helping customers. It also makes inventory management and logistics more efficient. Inventory management has long been associated with lengthy checks, manual entries, and the occasional human error. AI in Magento reduces the need for human involvement. It can automatically update stock levels according to the sales statistics and predict the future.

As a result, you know what products to replenish before the holiday rush. You also understand what’s in demand in your store during specific seasons. AI relies on trends, past sales data, seasonal changes, regional events, and other factors.

AI also contributes to the efficiency of logistics, from smart warehousing to route planning. The products won’t deteriorate due to improper storage, and the delivery won’t get delayed due to traffic, weather conditions, and potential roadblocks.

3. Minimizing Cyber Threats

Every online storefront, including Magento, contains credit card details, customer personal information, data on past transactions, and shipping partners. As hackers go the extra mile to enhance their strategies, it may be hard to keep up. So you’re left with reacting to scams after they’ve already happened.

But protection isn’t about dealing with consequences. Data breaches undermine a company’s reputation and bottom line, resulting in long-term repercussions and preventing business growth.

That’s why IT companies leverage AI to secure online operations. According to a recent study by Blackberry, a majority of IT decision-makers (82%) intend to invest in AI-driven cybersecurity over the next two years. Almost half of the respondents (48%) plan to do it before the end of 2023.

Here’s how AI works in cybersecurity. AI focuses on behavior analytics to spot and flag suspicious activity. For instance, AI will raise red flags if a historically thrifty account suddenly makes a rash of expensive transactions. It also identifies malicious attempts, such as:

  • Distributed denial-of-service (DDoS) attacks
  • Malware injections
  • Unreliable logins

4. Revolutionizing Customer Service

AI also comes to the rescue when you need to resolve an issue quickly and out of business hours. Picture traditional brick-and-mortar stores with the ever-friendly assistant who always knows what you want. That personal touch is irreplaceable. But how do you scale these helpers to a global e-commerce platform, available 24 x 7?

Enter AI chatbots. These aren’t those run-of-the-mill, script-based bots that fumble at the first sign of an unusual query. Magento, for instance, has integrated platforms like Drift and ManyChat, which use conversational AI to simulate real conversations.

Such progressive chatbots can support reasonable conversations, pull up requested information, and even throw in a quick tip about choosing the right fit.

Another aspect of customer service covers returns and complaints. These are an integral part of the e-commerce industry, so you need to ensure the efficiency of their handling rather than avoiding them. It’s impossible.

AI and Magento work together to take on this challenge. Consider Zendesk’s AI integration for Magento by agnoStack. This app lets your team members quickly sort orders to find the needed customer account in the database. So, when buyers contact the store, they can receive assistance much faster.

5. Strengthening Marketing and Sales

As mentioned above, personalization is among the capabilities possible with AI. But why should you personalize shopping experiences at all? According to the PwC Customer Loyalty Executive Survey 2023, 61% of respondents consider personalization the most critical driver of customer loyalty.

AI adapts the content to shoppers’ preferences. Thus, people discover more goods from the store suitable for their needs. By marrying Magento with AI, you address every customer individually. How? People leave a lot of information online. So, their clicks, views, purchases, and browsing habits can help AI tailor content to consumers. You can observe one of the examples in the screenshot of the Lacoste website below.

AI can tailor the content for consumers

Screenshot taken on the official Lacoste website

Take, for instance, the Magento integration with Adobe Sensei. You can download a free Product Recommendations extension, regulate suggestion types, create new recommendations, and automate your workflows.

But what if a prospect leaves the store? AI can recover unfinished purchases with the help of retargeting. This process denotes reminding users about their past experiences in your store when visiting other websites. Whether it’s an abandoned cart or viewed items, these ads speak directly to the user’s interests.

Overcoming AI Challenges: Potential Roadblocks

Apart from a potentially steep learning curve and hefty investment costs, there are some issues connected to AI, such as:

  • Vulnerability: You can’t blindly trust AI as it relies on data. So, whether AI is foolproof depends on the data fed to the system. If that data has biases (unintentional or otherwise), the AI can pick them up, skewing results.
  • Adversarial attacks: Cyber attackers get more advanced in terms of malicious techniques. They leverage AI generators to create malicious code and exploit AI weaknesses to find new ways to rob organizations. They conduct adversarial attacks and change input data, highlighting the need to monitor systems constantly.
  • Robotization: One of the biggest challenges in an AI-driven Magento platform is striking a balance between automation and authenticity. Customers, while appreciating personalized experiences, also want to feel they’re not just another data point. Be upfront about how you’re using AI and data. Provide options for customers to opt out to give them control over their privacy.

Wrapping Up

AI is indispensable for online retailers, including Magento users. It can streamline operations, simplify browsing experiences for customers, and protect stores from cyber attacks. While these advancements are still prone to vulnerabilities, we can protect ourselves by relying on quality data, updating software, and providing a genuine human touch. We can’t escape reality. AI is here to stay, so we must adopt it efficiently.