What to Look for in AI Solutions: An Ecommerce Guide
Jan 03, 2025 • 10 Minute Read • Thomas John, Commerce Practice Lead
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New Rules for B2C Ecommerce in the Age of AI
Oct 02, 2025 • 10 Minute Read • Thomas John, Commerce Practice Lead
The digital commerce landscape has undergone a seismic shift over the last five years, and artificial intelligence is driving the change.
In 2025, the global AI-enabled ecommerce market was valued at $8.7 billion and is projected to reach $22.6 billion by 2032. Beyond being just a future trend, AI is your competitive necessity. Both B2B and B2C segments are racing to adapt, with 84% of ecommerce leaders placing AI as their top priority.
This article explores how brands use AI to power customer experiences, move faster, personalize, and make data-driven decisions.
Rule 1: Hyper-Personalization Is Rewarded
The days of one-size-fits-all ecommerce are long gone. Today's customers expect brands to know them and reward those that do. In fact, 91% say they're more likely to shop with businesses that deliver personalized recommendations and experiences. The payoff is undeniable, with brands that embrace personalization seeing revenue gains of up to 40%.
How B2C Brands Are Executing Hyper-Personalization
Leading retailers are developing comprehensive customer data platforms (CDP) that track every interaction, from email opens and cart abandons to time spent viewing specific products.
Take fashion, for example. Brands like Stitch Fix aren't just guessing what you might like; they're using AI to reference data points, scan your style preferences, body measurements, and how you've rated past purchases. Then, real stylists step in to give it that human touch. The result is a highly curated box of clothes that feels like it was hand-picked (because it was).
Other ecommerce platforms are taking this further with real-time personalization engines. These systems adjust homepage layouts, product recommendations, and search results in response to browsing behavior. For example, a shopper who regularly buys organic products will see eco-friendly options highlighted, while a price-conscious customer is more likely to receive discount offers and value bundles.
Beauty brands are also innovating. AI-powered skin analysis tools allow customers to upload selfies and instantly receive tailored product regimens. These tools create a shopping experience that feels both personalized and consultative.
Even email is evolving far beyond inserting a first name. Dynamic campaigns powered by AI now generate completely different product showcases, messaging styles, and send times for each individual recipient.
The impact of this type of data strategy is clear, especially with big players.
Netflix says about 80% of what people watch and content discovery comes from personalized recommendations. Additionally, 35% of Amazon's web sales come from the same thing. These benchmarks set the standard for personalization across every retail sector, pushing brands to meet rising customer expectations.
Rule 2: AI Agents Are the New Sales Team
The future of ecommerce is agentic AI. By 2028, a third of ecommerce enterprises will use AI Agents, up from less than 1% today. And they're more than simple chatbots answering questions; they're sophisticated systems capable of handling complex transactions.
Even consumers are warming up fast: 70% say they'd trust AI to book their flights, and 65% would let it handle hotels and resorts, too.
This growing comfort signals a turning point in which autonomous AI agents shift from experimental to essential in the ecommerce experience.
Here's How B2C Companies Are Deploying AI Agents
Travel is already embracing autonomous agents. Companies are developing agents that manage entire booking processes where AI travel agents actively search for deals, compare options across multiple providers, and make purchases on behalf of customers.
Travelers could tell AI, "I need to fly to Chicago next week for under $400." In seconds, the AI agent scans flights, factoring in your past preferences (window seat, favorite airline, best departure times), even negotiating group rates if needed. It can even book your ticket using your saved payment details.
Fashion retailers also experiment with AI personal shoppers that proactively reach out when new inventory matches a customer's style profile. These agents can say, "I found three dresses similar to your recent purchase, all on sale this week," and handle the entire transaction through conversational interfaces. Some agents even monitor price drops on wish list items and automatically purchase when the price hits the customer's target. They send a simple confirmation: "Got you those Nike sneakers for $20 under your price target—they'll arrive Thursday."
Rule 3: Predictive Analytics Drives Smarter Inventory
Gone are the days of reactive inventory management. Predictive AI is helping brands plan ahead. Companies using AI in supply chain planning have seen revenue jump up to 4%, inventory drop by up to 20%, and supply chain costs shrink by 10%.
No wonder the AI supply chain market is experiencing significant growth and is on track to reach $11.7 billion by 2025.
How Leading Retailers Are Revolutionizing Demand Forecasting
Major fashion brands use AI systems to identify emerging trends. Zara and H&M use AI to scan millions of Instagram posts, Pinterest boards, and TikTok videos daily. Their algorithms analyze color schemes, silhouettes, and style combinations in user-generated content, cross-referencing this with spikes in search queries and the velocity of hashtags. When the system detects a trend gaining momentum—such as the comeback of Y2K fashion or a particular color scheme going viral—it automatically adjusts production orders. It reallocates inventory to stores in regions with the highest social media activity.
Target and Walmart use AI platforms to merge weather forecasts with purchase history at a hyperlocal level. So when a cold front is forecasted to hit Texas, their systems automatically increase shipments of space heaters and hot chocolate to impacted stores 5-7 days earlier. During hurricane season, AI monitors weather patterns and preemptively stocks emergency supplies, batteries, and water at distribution centers near predicted storm paths, often before official warnings are issued.
How Smart Warehouses Are Transforming Operations
Modern warehouses are taking on new roles beyond storage facilities. In a way, they're living and learning ecosystems powered by AI.
Chaotic Storage
Take Amazon's fulfillment centers, which don't look anything like traditional aisles and are typically based on product category. Instead, they rely on what's called "chaotic storage." It sounds unusual, but it's paying off. AI recognizes purchasing patterns, like how phone cases and screen protectors almost always go in a cart together, and stores them side by side, even though they're in different categories. Orders get picked 30% faster, and pickers are 20% more productive.
AI-Powered Computer Vision
Meanwhile, logistics leaders like DHL and FedEx are deploying AI-powered computer vision systems to add a new layer of intelligence. These systems spot damaged packages, flag incorrect labels, and even predict which items are most at risk during transit. On the warehouse floor, AI-guided robotic systems learn from human pickers, gradually optimizing routes and predicting which items will be ordered together at different times of the day.
But AI isn't only shaping how items are stored or shipped. It's also keeping the machinery behind the scenes running smoothly.
Predictive Maintenance
Predictive maintenance models can monitor conveyor belt vibrations, motor temperatures, and power consumption patterns to forecast equipment failures as much as 30 days in advance. One major retailer avoided 85% of potential equipment failures by forecasting and scheduling AI-powered maintenance during low-volume periods.
Together, these innovations are changing the definition of warehouse efficiency. They can be everyday practices that keep global supply chains moving at the speed of demand.
How Smaller Companies Are Accessing Enterprise-Level AI
Thanks to cloud-based platforms, AI is more accessible. Even the smallest businesses are now tapping into enterprise-level intelligence. Platforms like Shopify's AI tools and Amazon's forecasting services are putting advanced capabilities within everyone's reach. Instead of building models from scratch, anyone can start with pre-trained systems and customize them with their own data.
Imagine a boutique with just three locations that can now analyze its specific customer patterns and receive inventory recommendations that were once only available to large national chains. For example, AI adjusts to local preferences, recognizing that customers in Portland prefer earth tones, while those in Austin tend to buy brighter colors. This type of regional alignment can enable small retailers to act with the sophistication of those nationwide brands, while keeping their authentic neighborhood feel.
Even tiny ecommerce businesses benefit from AI-driven drop-shipping platforms that automatically test product demand, update prices based on competitors, and manage inventory across multiple suppliers without holding any stock. This capability enables entrepreneurs to run sophisticated ecommerce operations that would have needed entire teams just five years ago. It's no surprise that 91% of small businesses using AI see revenue growth.
Rule 4: Privacy-First Personalization Is Non-Negotiable
As AI capabilities grow, so do privacy concerns. Businesses must be transparent about using consumer data to earn and keep trust. The challenge is to provide highly personalized experiences while adhering to data privacy laws, including GDPR.
How Companies Are Building Privacy-Preserving AI Systems
Apple revolutionized privacy-first personalization with on-device processing, where AI algorithms run directly on users' phones instead of sending data to cloud servers. Retailers are adopting similar approaches. For example, Sephora's virtual try-on feature processes facial features locally on shoppers' phones—no biometric data leaves their device, yet customers still receive personalized makeup recommendations.
Major retailers, such as Target and Best Buy, are implementing "differential privacy" techniques that add statistical noise to obscure individual data points while maintaining accuracy at the aggregate level. Differential privacy lets them understand that "customers in zip code 10001 are buying more air purifiers" without knowing that "John Smith at 123 Main Street bought an air purifier." Their AI systems can still provide personalized recommendations based on patterns without storing identifiable purchase histories.
European retailers, including Zalando, are pioneering "synthetic data" approaches. By training AI systems on artificially generated datasets that mimic real customer behaviors, retailers can test new recommendation algorithms without touching customer information. This rule-based approach, using statistical modeling or machine learning techniques, can accelerate innovation while maintaining complete GDPR compliance.
Transparency Tools and Trust-Building Measures
AI Transparency Dashboards
Companies are creating "AI transparency dashboards" that allow customers to see what data is used for personalization. Spotify's "Privacy Center" is a standout example. It shows users how their listening data affects recommendations and provides granular control over the information. Users can choose to exclude specific genres or listening sessions from their recommendation profile.
Data Nutrition Labels
Purpose-driven brands, including those that display "data nutrition labels" on their websites. Just as food labels explain ingredients, these simple icons and clear language clarify what information they collect, how long they keep it, and which AI systems use it.
Recommendation Explanations
Amazon takes a practical step with "recommendation explanations," revealing why a product is suggested—e.g., "Based on your recent purchase of tennis shoes" or "Popular with customers who bought similar items." This transparency helps customers understand and trust the AI's logic while also giving them the ability to correct misunderstandings (e.g., "I bought those as a gift; don't base recommendations on them").
While transparency builds confidence, it must be backed by technical rigor to safeguard customer data.
Technical Implementation of Privacy Controls
Privacy Vaults
Retailers use "privacy vaults" where sensitive customer data is stored in isolated, highly encrypted environments. AI queries the vaults for insights (e.g., "Is this customer interested in outdoor gear?") without accessing or exposing the underlying data (e.g., "Customer bought six camping items last month"). This zero-knowledge architecture allows personalization while minimizing data exposure.
Cookieless Tracking
Others are embracing AI-driven, cookieless tracking solutions to understand customer journeys through pattern recognition, rather than individual tracking. These systems analyze aggregate traffic flows and use machine learning to infer user intent without placing identifying markers on individual browsers. Brands like The New York Times deliver relevant content recommendations without placing identifiers on browsers and therefore respecting readers' privacy.
Privacy Stress Test
Innovative ecommerce companies are adopting privacy-preserving techniques for AI features and solutions, setting a new bar for accountability. Nike has taken this step, requiring all AI to pass a "privacy stress test," which simulates various breach scenarios to ensure data remains protected even if systems are compromised.
Privacy is especially critical as 92% of businesses already use generative AI to enhance the ecommerce experience. Companies like Shopify provide merchants with AI tools that are "privacy by design"—customer data is automatically anonymized, retention periods are enforced by default, and consent management is built into every feature. Even small merchants can offer AI-powered personalization while maintaining enterprise-level privacy protection.
Rule 5: Omnichannel Intelligence Becomes Table Stakes
The line between shopping online and in person is disappearing fast. Customers expect to move fluidly between digital and physical purchases with a brand, starting a purchase on mobile, modifying it on desktop, and completing it in-store without interruption. AI is the connective tissue that makes this possible, providing consistent experiences across touchpoints.
What was once a competitive differentiator is now the minimum expectation. Companies without unified channel intelligence ask customers to reintroduce themselves at every interaction.
3 Examples of How Companies Are Executing Omnichannel Intelligence
Retail Integration
Nike unifies inventory across over 1,000 stores and online channels using AI. Customers can order online and pick up their items in the store within hours or have store associates ship items from any location. Nike's AI tracks each customer across channels. If you abandon a cart online, store associates see those items when you visit and can offer to help complete the purchase.
Unified Pricing and Inventory
Home Depot's AI ensures contractors see their negotiated rates and real-time availability, whether they check prices on the app, call a pro desk, or visit the store. The system can reserve inventory across channels and even redirect shipments between stores to fulfill orders.
Predictive Channel Routing
Best Buy's AI predicts which channel each customer prefers for different transaction types. It might send TV purchase recommendations via email, but service reminders through SMS, automatically routing communications through each customer's preferred channel based on past response rates.
The Path Forward with AI-Driven Digital Transformation
The AI revolution in ecommerce is already here. By 2032, the market is expected to reach $45.7 billion. Companies that embrace these new rules today will be tomorrow's leaders.
But it's not just about having the technology. Real success comes from rethinking how you engage customers and how your supply chain runs. With 90% of ecommerce business already using AI or planning to by the end of 2025, the real question isn't if you'll use AI, it's how quicky you can make it work for you.
The future belongs to those who can balance technological innovation with human insight.
The companies that move first to deliver experiences that are both intelligently automated and authentically engaging will define the next era of ecommerce.
In the age of AI, that's your competitive advantage. Will your company be one of them?
Our team of commerce experts is here to help you explore a practical and strategic path forward.
Sources
AI-enabled ecommerce market valued at $8.65 billion in 2025, projected to reach $22.60 billion by 2032 – SellersCommerce, Sana Commerce
84% of ecommerce businesses place AI as their top priority – BigCommerce
91% of consumers are more likely to shop with brands that provide personalized offers – SellersCommerce
Retailers delivering personalized experiences see a 40% increase in revenue – Bloomreach
33% of ecommerce enterprises will include agentic AI by 2028 – SellersCommerce, Sana Commerce
81% of B2B companies already invest in AI tech – Digital Commerce 360
AI-enabled supply chain planning increased revenue by up to 4%, reduced inventory by up to 20% – SellersCommerce