5 AI Predictions Ecommerce Businesses Need To Know (2024)

Artificial intelligence (AI) is still a relatively nascent technology, and yet it has already reshaped business models around the world. At the current rate of change, AI systems may affect humans as much as the technologies developed during the Industrial Revolution. For example, the invention of steam engines and mechanized looms allowed factories to produce goods at a faster rate, leading to increased efficiency and reduced costs. Likewise, AI is now automating tasks such as data analysis, customer service, and even parts of manufacturing through robotics and machine learning.

We all need to prepare for an onslaught of artificial intelligence in our daily lives, from large language models for writing to AI technology that revolutionizes health care.

We’ve already seen social media platforms and search engines integrate artificial intelligence into their platforms, so there’s no question AI will soon power many of our digital technologies. 

Keep reading for predictions of how AI might affect ecommerce businesses in the future, so you can prepare your business for potential shifts. 

5 AI predictions for ecommerce businesses

1. AI will be increasingly valuable for businesses of every size
2. Natural language processing will revolutionize customer interactions
3. Small businesses embracing AI will drive GDP growth
4. Ecommerce businesses will need to prioritize data security to stay compliant
5. Businesses will need to be transparent about AI usage to maintain trust

Artificial intelligence has the potential to remake both business and society at large. As companies integrate AI systems into their operations, they gain the potential to unlock new revenue streams. 

However, a surge in AI also comes with potential risks, such as accelerating the spread of misinformation and creating deepfakes. Although no one can say for certain what the future of AI holds, researchers have sought to identify present-day trends and make predictions on how ecommerce businesses will contribute or be impacted.

Here are five of them:

1. AI will be increasingly valuable for businesses of every size

Analysts expect AI adoption to accelerate across various sectors, such as health care, finance, retail, and manufacturing. This will heavily involve enterprise applications that let large companies scale their operations. It will also involve general-purpose AI that smaller companies can use at lower costs. 

According to the McKinsey Global Survey, more than 65% of the companies surveyed reported adopting AI in at least one business function, and this number is forecast to rise significantly. The sectors that show the most AI adoption are marketing and sales, followed by product development and information technology. Already, AI-driven personalization is nearly ubiquitous among ecommerce businesses, providing product recommendations tailored to customers based on their interests and purchase history.

2. Natural language processing will revolutionize customer interactions

The data science behind natural language processing (NLP) will likely see remarkable development, thrusting human-computer interactions into even more corners of society. Generative AI models similar to OpenAI’s ChatGPT and Google’s Gemini will become even more sophisticated, potentially achieving near-human comprehension and conversational abilities. 

The tech research firm Gartner estimates that by 2025, AI will manage 75% of customer interactions, suggesting that AI-driven chatbots and virtual assistants will play a central role in customer service.

For ecommerce businesses, advances in NLP will lead to AI becoming even more widespread. A 2024 survey shows a third of consumers believe generative AI will provide quicker responses to requests. Given this demand, the AI chatbot market is projected to reach nearly $47 billion by 2029 (up from $16 billion in 2024).

3. Small businesses embracing AI will drive GDP growth

AI will make up a rising share of global gross domestic product (GDP) growth. This will come, in part, from the next generation of autonomous systems—such as self-driving cars and drones—as well as from accounting, machinery inspection, contact center operations, and translation services. According to the International Data Corporation (IDC), AI-based technologies will provide a cumulative economic impact of $19.9 trillion through 2030 and will account for 3.5% of world GDP.

Small businesses represent 43% of the United States’ GDP. Since AI provides an opportunity to scale output with fewer resources, those who adopt AI can expect to be part of this anticipated GDP growth. Already, 23% of US small businesses use an AI platform, according to the US Chamber of Commerce, and 82% of them agree that AI has increased efficiency—leading to future growth.

4. Ecommerce businesses will need to prioritize data security to stay compliant 

The European Union has a more robust appetite for regulating tech than the US government, but its regulations have global consequences. For example, it was EU governance that made Apple drop its proprietary Lightning charging cable for the more user-friendly USB-C standard—a move that impacted US and European markets. This willingness to regulate will extend into new technology and new platforms driven by AI. 

On August 1, 2024, the EU Artificial Intelligence Act took effect to “provide developers and deployers with clear requirements and obligations regarding specific uses of AI” with an eye to “citizens’ health, safety, and fundamental rights.” Whether you operate a business in Europe or not, these regulations will set the standard and likely affect all businesses that incorporate AI tech in the coming years.

Although most of the legal obligations and risks will fall on AI developers, ecommerce businesses using AI should take every precaution to protect their customers’ data privacy. Whether you’re using AI to make personalized product recommendations or support your customer service team, document your use of ecommerce security measures to avoid running afoul of regulations. 

5. Businesses will need to be transparent about AI use to maintain trust

Surveys show that most people realize that AI is here to stay, and they sense that they will have to adjust. According to a survey, 80% of Americans are worried about the data security and privacy risks associated with AI adoption.

To allay fears and maintain trust, be transparent with customers about how you use AI. Make it clear when consumers are engaging with AI-enabled chatbots or live chats with human representatives. Do your due diligence in understanding the dangers of AI and outline your data security protocols on your FAQ page for customers seeking reassurance.