Beyond Automation: The Role of AI in Ecommerce Growth
Over the last few decades, the biggest changes in commerce haven’t come from technology alone. They’ve come from a convergence of changes in technology as well as the way businesses and consumers adopt it. For example, the shift to online shopping, the rise of mobile, and the explosion of social media. None of these trends are solely about new tools. They came from how people and businesses used them to buy, sell, and connect differently. And that’s what we’re seeing now with Artificial Intelligence (AI).
Machine Learning and AI tools aren’t new, they’ve simply reached the point where they are much more accessible, built into everyday software and easier to use.s. Just like the mobile revolution, some businesses are embracing AI, while others are hesitant or unsure of where to start. And just like during the early days of social media, some are treating it as a side project, outsourcing it to interns or siloing it from core operations, without fully integrating it into the way they work.
This is the real risk, because just simply adopting AI as an ancillary tool won’t move the needle. Change comes when retail businesses entirely rethink and reevaluate how they work as Diana Nolting, CPO at Linnworks discusses below.
AI is changing the shape of work
AI isn’t just another technology trend, it’s a major shift in how businesses operate moving forward. It’s not about replacing people with machines. Instead, retail businesses need to think about augmenting human decision-making, automating the routine, and freeing up space for employees to deliver more strategic, creative thinking. Just as email changed how businesses communicate and social media changed how businesses market their products and services, AI is changing how ecommerce businesses sell, manage inventory, serve customers, and think about risk.
To really unlock that potential businesses need to shift their mindset. More than ticking a box, it’s about learning to work differently, think critically, experiment more. Trust becomes central to this evolution of technology. Businesses need to create space to test, fail, and learn, especially in times like pre-peak, when they can afford to experiment before the peak season arrives.
Right now, pre-peak season, is an ideal time to test new workflows, shift team dynamics, and redefine how roles function. This shift also brings a deeper responsibility, as AI tools are only as good as the people using, training, and interacting with them. So far, no AI tool can replace critical thinking. That’s why it’s so important for businesses to teach teams how to use AI responsibly, to understand business risks, safeguard data, and apply judgment and businesses that empower their employees with these skills in order to be the ones that thrive.
Consumers won’t wait for you to catch up
Meanwhile, customer habits have already changed. Shoppers are using AI to help them locate and research products and services, whether this takes the form of asking a chatbot or advice on a specific product they are looking at, using smart assistants to browse, or expecting faster responses from customer support. Customers are using these tools whether businesses are ready or not.
AI is a fundamental part of the ecommerce industry. You can’t control how consumers adopt new tools, however what you can control is how your business responds. Your goal shouldn’t be to have the most high-tech solution in place. Winning means being adaptable and building workflows and team structures that are open to change.
Supporting Inventory and Stock with AI
AI is transforming inventory management by enabling smarter, data-driven decisions that reduce costs and improve efficiency. Using machine learning algorithms, AI can accurately forecast demand by analysing historical sales data, market trends, seasonality, and even external factors like weather or economic conditions.
AI supports real-time inventory tracking, allowing companies to monitor stock movement across multiple locations and automate reordering processes. With predictive analytics, businesses can better align their supply chains to customer demand, improving delivery times and reducing waste. AI-powered systems can identify slow-moving products, suggest pricing adjustments, or recommend bundling strategies to clear excess inventory.
AI can help detect anomalies in inventory data, which can signal theft, errors, or inefficiencies. We’re in the dawn of a new convergence of change – one that will reduce manual labor, and ensure that inventory systems are more responsive, scalable, and aligned with business goals.
Make AI a working partner, not a replacement
Of course, it’s obvious that Artificial Intelligence is making waves in ecommerce by enhancing customer experiences, streamlining operations, and driving sales growth. One of its most impactful uses is in personalisation, where AI analyses user behavior to recommend products, tailor marketing messages, and predict future purchases.
AI-powered chatbots provide instant customer service, improving engagement and reducing the need for human support. And in the backend, most crucially, AI optimises inventory management and supply chains through predictive analytics, helping businesses avoid overstocking or stockouts.
From automated content creation to customer sentiment analysis, AI enables smarter decision-making. As technology advances, this technology will continue to be a key driver of innovation, efficiency, and growth in the competitive world of ecommerce. But no tool, regardless of its power, can make good decisions entirely on its own. This means that it will be people who shape how technology is used, and people that ultimately create the real change in business.
The retail companies that grow with AI won’t be the ones with the most cutting-edge tech. They’ll be the ones with curious teams, smart processes, and leaders who are willing to trust both.
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