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Artificial Intelligence in E-Commerce – Overview of Applications, Benefits and Challenges

In: Digital Management and Artificial Intelligence

Author

Listed:
  • Darius Zumstein

    (FHNW School of Business)

  • Grzegorz Chodak

    (Wroclaw University of Science and Technology)

Abstract

Since 2018, trends, developments and challenges in e-commerce have been systematically researched conducting a representative long-term study among 624 online retailers in the DACH region (Germany, Austria and Switzerland). The latest study in 2024 reveals surprising results: 54% of all e-commerce companies are already using artificial intelligence (AI) to create and translate texts, primarily with ChatGPT. In nine out of ten cases, this leads to time savings, more content, reduced personnel costs, and to faster text creation and translations. 42% of the online retailers create product information, such as product texts in the web shop, with the help of AI. Thanks to search engine-optimized product texts using generative AI, this leads to a higher reach on Google in the discipline of search engine optimization (SEO), and thus to more product page visits, sales and to higher conversion rates. One in four online retailers create images and videos with the help of AI. 20% of the retailers use AI in digital marketing, for example for targeting or managing advertising campaigns. Large language models (LMMs) are also implemented in online shop searches, such as product search, filters and product finders. Three quarters of online retailers believe that AI-based searches will become standard in two to five years. However, only one in six retailers uses AI in analytics for data analyses. Furthermore, AI has high potential for sales and customer service: Nine percent of the online retailers offers an AI-based service chatbot or customer support. Additionally, 20% of the retailers are in the process of planning and implementing such chatbot services. Moreover, six percent have already implemented an AI-based sales chatbot and 17% plan to implement one. A detailed analysis of AI applications in online shops is a valuable contribution to e-commerce theory and allows future trends for the business to be identified.

Suggested Citation

  • Darius Zumstein & Grzegorz Chodak, 2025. "Artificial Intelligence in E-Commerce – Overview of Applications, Benefits and Challenges," Springer Proceedings in Business and Economics, in: Richard C. Geibel & Shalva Machavariani (ed.), Digital Management and Artificial Intelligence, pages 1-15, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-88052-0_1
    DOI: 10.1007/978-3-031-88052-0_1
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