Today’s customers prioritize personalized shopping experiences.
They expect real-time support, tailored product recommendations, and quick resolutions to their queries – demands that can be challenging to meet with traditional customer service models.
This is where AI shopping assistants, also referred to as virtual shopping assistants or digital shopping assistants, enter the stage.
AI shopping assistants have already revolutionized the way retailers interact with customers. However, the key question for many businesses is not whether to implement AI shopping, but whether to choose a pre-built AI shopping tool or invest in a custom-built digital shopping assistant tailored to specific needs.
In this article, we will explore the business benefits of AI shopping assistants, discuss key use cases, and explain when a custom AI solution might be a better fit for your e-commerce business. Read on to find out.
What is an AI shopping assistant?
AI shopping assistants, also known as virtual shopping assistants or online shopping assistants, leverage artificial intelligence to create a more intuitive and personalized shopping experience.
Unlike traditional chatbots, AI shopping tools use advanced algorithms and machine learning to understand customer preferences, answer questions, and guide users to products they are most likely to purchase.
AI shopping assistants are becoming a standard feature in e-commerce. From leading brands like IKEA, Levi’s or Michael Kors, through e-commerce giants, including Walmart and Amazon, to startups offering specialized AI shopping assistant solutions, like Cherry, oriented at discovering products from screenshots and images - AI-assisted shopping is no longer a fancy feature, but is slowly becoming the norm.
Check out how Amazon’s Rufus, a generative AI-powered conversational shopping assistant, works in action:
From an e-commerce perspective, AI shopping assistants deliver numerous advantages: higher customer satisfaction, increased conversion rates, and more streamlined customer service operations. AI shopping assistants have moved beyond a technological trend to become a strategic asset for businesses looking to excel in a highly competitive marketplace.
Key business benefits of AI shopping assistants
AI shopping assistants provide a range of business benefits that extend well beyond basic customer support. By automating and personalizing customer interactions, these virtual shop assistants create a superior shopping experience, drive operational efficiency, and ultimately increase sales.
- Increased sales and conversion rates – AI shopping assistants directly contribute to increased sales by offering personalized product suggestions and recommendations that encourage customers to explore more items. These tools can upsell and cross-sell products based on real-time shopping behaviors, driving higher average order values and boosting overall conversion rates.
- Cost savings – AI shopping assistants can significantly lower customer service costs by automating repetitive tasks like answering FAQs or handling order tracking. This allows businesses to reallocate human resources to more complex tasks, reducing the need for large customer support teams while improving efficiency.
- Improved customer experience – AI shopping assistants deliver personalized product recommendations based on browsing behavior, purchase history, and real-time interactions. Whether through a digital shopping assistant or a virtual shop assistant, this personalization leads to more meaningful customer engagement, increasing the likelihood of converting casual browsers into paying customers. AI shopping tools also provide instant responses to queries, reducing frustration and improving overall customer satisfaction.
- 24/7 availability – one of the key benefits of AI for shopping is the ability to offer around-the-clock support. Unlike human agents, AI shopping assistants never take breaks, ensuring customers receive assistance whenever they need it. This 24/7 availability is especially important for businesses with global customer bases, as it helps reduce cart abandonment and ensures a smooth shopping experience across time zones.
- Better customer retention - with AI-driven personalization and 24/7 support, businesses can create more meaningful connections with their customers, leading to improved loyalty. Satisfied customers are more likely to return, driving higher retention rates and fostering long-term customer relationships.
- Actionable data insights - AI shopping assistants are not only a customer-facing solution—they also collect valuable data on customer behavior and preferences. This data can help e-commerce businesses refine their inventory, improve marketing strategies, and enhance website design. Over time, AI systems continuously learn and improve, providing more accurate recommendations and insights that drive further business growth.
- Proactive customer engagement - AI tools can proactively engage customers by offering personalized promotions, sending reminders about abandoned carts, or notifying them of restocked products. This targeted engagement reactivates customer interest, drives repeat sales and boosts customer retention.
Use cases of AI shopping assistants in e-commerce
Virtual shopping assistants offer a variety of functionalities that can transform how e-commerce businesses interact with their customers. From personalized product recommendations to real-time customer support, these AI shopping tools deliver tangible benefits across multiple touchpoints of the customer journey.
Personalized product recommendation engines
One of the most common and impactful uses of AI shopping assistants is personalized product recommendations. By analyzing customer data—such as past purchases, browsing history, and preferences—AI systems can suggest products that align with individual tastes.
This level of customization improves the shopping experience, making it more likely for customers to find products they are interested in, thereby increasing conversion rates. For example, e-commerce giants like Amazon use AI shopping tools to recommend products based on user behavior, significantly driving repeat purchases and boosting average order values.
Virtual assistant chatbots
AI-powered virtual shop assistants act as personal shopping guides, helping customers navigate through the e-commerce site to find products that meet their needs. This feature is especially valuable for new or indecisive shoppers who may need additional support in making decisions.
By offering a seamless, personalized experience, AI shopping assistants increase customer engagement and retention, fostering long-term loyalty.
Automated customer support
AI shopping assistants excel at automating routine customer service tasks, such as answering FAQs, tracking orders, and managing returns. By offering quick and accurate responses, these virtual shopping assistants reduce the workload on human support teams and improve customer satisfaction with faster issue resolution.
For example, online retailers like Sephora use AI-powered assistants to help customers with product inquiries and order status, providing a more efficient and enjoyable shopping experience.
Upselling and cross-selling opportunities
AI shopping tools are also powerful in driving upselling and cross-selling opportunities. By analyzing a customer’s current shopping cart or browsing behavior, virtual shopping assistants can suggest complementary or higher-value items, encouraging customers to increase their purchase amount.
This kind of tailored recommendation helps boost both sales and customer satisfaction. Shopify, for instance, uses AI shopping assistants to recommend related products during the checkout process, enhancing the shopping experience and maximizing revenue.
Voice-assisted shopping
With the growing popularity of voice-enabled devices like Amazon Alexa and Google Assistant, voice-assisted AI shopping tools are becoming an integral part of the online shopping experience. Voice shopping allows customers to search for products, add them to their cart, and complete purchases through voice commands.
Retailers integrating voice shopping with their AI tools can offer an even more convenient, hands-free shopping experience, appealing to busy customers seeking efficiency.
Loyalty programs and post-purchase engagement
AI shopping assistants can play a critical role in building long-term customer loyalty by offering post-purchase engagement. By analyzing a customer’s past purchases, virtual shopping assistants can recommend complementary products or send personalized offers and discounts to encourage repeat business. Many e-commerce companies use AI-driven email marketing or chatbot systems to keep customers engaged after a purchase, helping to increase lifetime customer value and boost overall retention.
In each of these use cases, AI shopping assistants enable e-commerce businesses to provide more personalized, efficient, and engaging experiences for their customers. From boosting sales through personalized recommendations to reducing customer service costs with automation, the versatility of AI shopping tools makes them invaluable for businesses looking to grow and improve their customer relationships.
Custom AI vs. off-the-shelf solutions: which is better for your business?
When choosing between a custom AI shopping assistant and an off-the-shelf solution, it’s essential to weigh the pros and cons of each based on your business goals and budget.
Off-the-shelf AI solutions
Off-the-shelf virtual shopping assistants offer a quick, cost-effective solution for businesses looking to implement AI shopping tools without heavy customization.
Pros:
- Quick deployment – off-the-shelf solutions can be implemented quickly, allowing businesses to start benefiting from AI shopping features almost immediately.
- Lower upfront costs – these solutions typically require a smaller initial investment compared to building a custom AI tool.
- Ease of use – pre-built solutions often come with user-friendly integrations for popular e-commerce platforms, making them accessible for businesses with limited technical resources.
Cons:
- Limited customization – off-the-shelf solutions may not fully meet the specific needs of your business, offering less flexibility in terms of features and workflows.
- Data privacy concerns – some off-the-shelf solutions may not provide complete control over customer data, raising concerns about privacy and compliance.
- Scalability issues – as your business grows, you may find that off-the-shelf solutions cannot easily scale to meet increasing demand, potentially leading to a need for a custom solution later on.
Custom AI solutions
Custom AI shopping assistants provide the flexibility and scalability needed for businesses with specific workflows or long-term growth plans.
Pros:
- Tailored to your business needs – a custom AI shopping assistant is designed to address your unique business challenges and customer engagement strategies.
- Full control over data – with a custom solution, you have complete control over how customer data is collected, stored, and used.
- Scalability – a custom AI shopping tool can be designed to grow with your business, allowing you to add new features and integrations as needed.
Cons:
- Higher upfront costs – building a custom AI solution requires a larger investment of time and resources.
- Longer development time – custom solutions take more time to develop and test compared to off-the-shelf options.
Deciding between a custom AI shopping assistant and an off-the-shelf solution depends on your business goals, budget, and long-term vision. If you need quick deployment with basic features, an off-the-shelf solution might be sufficient. However, if you’re looking for a scalable, long-term solution tailored to your specific needs, a custom AI shopping tool is likely a better investment.
When to opt for a custom AI shopping assistant?
When deciding between a custom AI shopping assistant and an off-the-shelf solution, you’ll have to consider several factors based on your specific needs, long-term goals, and technical capabilities. Here are key scenarios when opting for a custom AI shopping assistant might be the better choice:
When you have unique business requirements
If your business offers products or services that are niche or require complex decision-making, a custom virtual shop assistant can be tailored to handle industry-specific processes and provide more relevant recommendations or advice to customers.
For businesses with unique customer journeys, payment processes, or sales models, a custom solution allows the virtual shopping assistant to be built around these specific workflows rather than being constrained by the functionality of an off-the-shelf option.
When proprietary branding is required
If you require the virtual shop assistant to embody your brand’s tone, language, and personality in a very specific way, a custom solution ensures that the assistant can deliver a fully on-brand, personalized customer experience.
For businesses that need highly personalized, data-driven interactions based on customer profiles, shopping habits, and preferences, a custom-built assistant can be designed to integrate deeply with existing CRM systems, providing richer, more personalized engagements.
With high scalability needs
A custom online shopping assistant can be designed to scale with your business and support complex use cases as your customer base, product catalog, or service offerings expand. Off-the-shelf solutions may have limitations in handling rapid growth, both in terms of technical performance and feature flexibility.
As your business evolves, a custom online shopping assistant can be updated to accommodate new features, languages, product lines, or services, whereas off-the-shelf options might offer limited customization or require costly upgrades.
When advanced integrations are required
If your business uses multiple platforms (such as custom e-commerce systems, ERPs, or supply chain management tools), a custom virtual shopping assistant can be designed to seamlessly integrate with these systems, ensuring data flows efficiently and the assistant has full access to relevant information.
A custom-built online shopping assistant can offer deeper analytics and actionable insights tailored to your business's performance metrics, allowing for more accurate data collection and reporting.
When you need high control over data and security
For businesses handling highly sensitive or confidential customer data (e.g., in finance, healthcare, or high-end luxury goods), a custom solution offers full control over how data is processed, stored, and secured, adhering to specific industry regulations and best practices.
If your business requires the use of proprietary algorithms or machine learning models that offer a competitive advantage, a custom online shopping assistant can be built to leverage these advanced technologies, ensuring data privacy and ownership.
For cost-effectiveness in the long term
While off-the-shelf solutions may be more affordable initially, they often come with recurring subscription fees and limited ability to customize. In the long term, a custom solution can prove more cost-effective, as it eliminates ongoing licensing fees and allows you to control feature development.
Off-the-shelf solutions may require additional third-party tools or apps to cover gaps in functionality. With a custom AI shopping assistant, your business can avoid patchwork solutions and invest in a system that meets all specific needs from the outset.
Building a custom AI shopping assistant for your business - a step-by-step process
While off-the-shelf AI shopping assistants offer quick deployment, creating a custom AI shopping assistant tailored to your business needs can deliver long-term strategic benefits. A custom-built solution allows you to design an AI shopping tool that seamlessly fits into your existing systems and aligns with your brand’s unique customer service approach.
Building a custom AI shopping assistant requires careful planning, technical expertise, and continuous improvement. Here’s a step-by-step approach:
Step 1: Identify business goals and use cases
Begin by defining the key objectives you want to achieve with your AI shopping assistant. Are you focusing on increasing conversion rates, improving customer support, or enhancing personalization? Clear goals will help you design a solution that drives real business value.
Step 2: Select the right technology stack
Choose the AI and machine learning technologies that best fit your business. Consider how your virtual shopping assistant will interact with customers—whether via chatbot, voice interface, or a combination of both—and ensure it integrates with your e-commerce platform.
Step 3. Train the AI with relevant data
The effectiveness of your AI shopping assistant depends on the quality of the data it’s trained on. Use relevant customer data, such as purchase history and browsing patterns, to ensure the assistant provides accurate recommendations and insights.
Step 4. Test and iterate
Before launching the AI shopping assistant, test it with real customers to ensure it functions as expected. Continuously gather feedback and make improvements to optimize the user experience and increase the tool’s effectiveness.
Step 5: Deploy and integrate
Once testing is complete, integrate your AI shopping tool across all customer touchpoints, whether that’s your website, mobile app, or social media channels. A well-integrated assistant ensures a consistent and smooth customer experience.
Step 6: Ongoing optimization
Even after deployment, a custom AI shopping assistant should be continuously monitored and refined. As customer preferences and market conditions change, regular updates and improvements will keep your AI tool aligned with business goals and customer expectations.
A custom AI shopping assistant provides e-commerce businesses with flexibility, control, and long-term scalability. While it requires a larger initial investment compared to off-the-shelf solutions, the benefits of a tailored, adaptable AI shopping tool can drive significant improvements in customer satisfaction, operational efficiency, and sales.
As AI for shopping continues to evolve, businesses that invest in these technologies today will be well-positioned to deliver exceptional customer experiences, drive higher revenue, and remain competitive in the ever-changing e-commerce industry.
Embrace AI shopping assistants for a future-ready e-commerce strategy
AI shopping assistants are reshaping the e-commerce industry and they are here to stay. Businesses that invest in these technologies today will be well-positioned to deliver exceptional customer experiences, drive higher revenue, and remain competitive in the ever-changing e-commerce industry.
As AI technology continues to evolve, the potential for these virtual shopping assistants will only increase, making them an essential component of a forward-thinking e-commerce strategy.
Embrace AI for shopping today, and position your e-commerce business for success in the future. Reach out to us today through this contact form and we’ll be happy to talk about how to position your e-commerce business for success in the future.
.png)
