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The Use of Artificial Intelligence (AI) in Social Commerce

post-author
5 min read

Let’s talk about a digital revolution. Imagine shopping without leaving your cozy sofa, scrolling through the latest trends on social media, and buying with just a click.

That’s the magic of social commerce—a buzzing new wave in the online shopping world, blending our beloved social media with e-commerce. But what’s steering this ship? Artificial intelligence (AI), of course.

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Judging by the numbers, we’re still on the ground floor. The global AI market is expected to grow at an annual rate of 37.3% between 2023 and 2030. But why is it zooming to such heights? Industries, especially social commerce, are tapping into the uncharted territories of AI, unraveling potential we might not have imagined.

Curious about what’s fueling this skyrocketing growth? It’s the harmony that exists between AI and social commerce, each amplifying the other to new peaks. Let’s take a look at how deep this connection goes.

Artificial Intelligence: Reshaping the E-Commerce Landscape

AI is rocking the e-commerce industry. Big players are already showcasing the benefits of large language models (LLMs) for online retailers, from the Salesforce Einstein platform to the Google Cloud Discovery suite of tools.

Since businesses are already taking note of these innovations and seeing results, the message is clear—if you weave AI strategically into your transformation, decision-making, and system upgrades, the benefits will be noticeable.

But what drives the marriage between AI and e-commerce? It comes down to: 

  1. Vast data accessibility: E-commerce platforms generate an enormous volume of data daily. AI thrives on data to make informed decisions and predictions and create personalized user experiences.
  2. Gaining a competitive edge: In an ever-evolving market, businesses that adopt AI can stand out, offering superior customer experiences via streamlined, automated operations at scale.
  3. High-performance computing power: Modern computing capabilities allow AI algorithms to process and analyze data at unprecedented speeds, resulting in real-time insights and actions, giving businesses what they need much faster than before.

While AI can assist in everything from product descriptions to writing retargeting emails, social commerce is different from traditional e-commerce. 

Understanding Social Commerce

Social commerce is revolutionizing the shopping experience by seamlessly blending social media with e-commerce. Platforms like Facebook, TikTok, Instagram, and Pinterest have integrated shopping features, allowing consumers to discover and purchase products without ever leaving the app.

This integration eliminates purchase barriers, streamlining the buyer’s journey and offering a unique and personal shopping experience that can provide product-centered live streams, contextual selling, giveaways, and more.

AI: The Force Driving Social Commerce to New Heights

It’s not just about making your copywriter’s life easier—AI can do so much more to boost revenue and amplify your reach across all channels. Let’s examine exactly why AI goes so well with social commerce.

AI and Chatbots: Ensuring 24/7 Customer Engagement

Chatbots have come to the forefront as reliable and efficient assistants. They engage customers in real-time, address queries, offer personalized product suggestions, handle order placements, and even update clients on the status of their orders. With chatbots, businesses can:

  • Divert resources from repetitive tasks
  • Offer 24/7 customer service
  • Boost client satisfaction
  • Regularly engage and foster trust among consumers

Additionally, the seamless integration of AI-powered chatbots with platforms like Facebook Messenger and WhatsApp has exponentially expanded their reach and impact.

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Harnessing AI for Content Creation

Tools such as OpenAI’s ChatGPT have risen to prominence in the dynamic realm of content creation. However, it’s not the only model in town anymore—Claude, Bard, and Meta’s LLaMa have all emerged as worthy competitors, all fighting for a similar target audience. When equipped with a wealth of data spanning purchase history to real-time user engagement metrics, these AI models have the power to produce exceptionally personalized content. 

Personalized content for social commerce platforms increases user engagement and creates a deeper connection, making sure that people understand the brand’s message. And with the brilliance of Midjourney and DALL-E 3, your business can produce some brilliant product and brand images and designs, too. 

The Revolution of AI-powered Visual Search

While traditional search systems, like Google search, have predominantly relied on keyword inputs, AI introduces a transformative shift with its visual search capabilities. Instead of relying on words, customers can now use an image by taking a fresh photo or uploading an existing one. 

Once in the system, AI meticulously analyzes the image, discerns key visual elements, and matches it against a vast product database. AI-powered visual search in e-commerce can significantly enhance the user experience as well. Your shoppers can search for specific looks in your store and instantly get all the relevant items.

Personalization with AI: Meeting Individual Preferences

Social commerce’s biggest appeal is its ability for personalization. With the power of AI, brands can analyze vast amounts of data, from past purchases to intricate patterns of user behavior, to dictate each shopper’s buying preference and taste.

This analysis can empower e-commerce brands to curate product suggestions that aren’t just generic recommendations but are fine-tuned to individual tastes with the help of data related to their followers. A shining example of this is in features like Amazon’s product suggestions

Fortifying Social Commerce: Artificial Intelligence and Cybersecurity

As our digital world becomes more connected, making your social commerce platform safe is very important. AI can soon become a critical part of this security system.

Beyond just the basics, it actively spots anomalies, wards off potential security breaches, and is instrumental in the fight against credit card fraud. However, criminals can also use AI to turn the tables, but there’s no need for doom and gloom—according to GitNux, 44% of organizations reported their use of AI for cybersecurity yielded a success rate of over 80%. It’s already working, and we’re still at the very beginning of AI security solutions. 

Streamlining Business Processes with AI

AI isn’t just about automation; it’s about refining operational efficiency at every step of the way. One of the most significant benefits of using AI in e-commerce is letting it handle monotonous, repetitive tasks. Doing so allows businesses to focus on core strategies, marketing, and customer engagement

An illustrative example is AI’s ability to track and analyze customer behaviors, like items left unpurchased in online carts, and prompt them with timely reminders. In addition, you can cross-reference this data with social media analytics and let AI crunch it so it can reach a conclusion.

A New Age of Advertising with Artificial Intelligence

Gone are the days of blanket advertising strategies. AI analyzes massive amounts of user data to recommend tailored content, ad formats, and strategic targeting, ensuring better engagement and sales. Microsoft’s implementation of smart bidding, an AI feature predicting ad conversions, helps businesses pivot rapidly based on demand.

Mark Zuckerberg has also pointed out how AI-optimized advertising increased monetization by 30% and 40% on Facebook and Instagram, respectively.

Digital Storefronts: AI-Optimized Shopping Experience

Online shopping is already going through a transformation. Technologies like live selling are helping e-commerce stores convert ten times more than traditional commerce. And AI implementation will only increase efficiency, helping brands push conversions even further.

AI can help digital storefronts tap into fresh revenue streams, curtail customer acquisition costs, and enhance the overall shopping experience with smart, personalized recommendations, with minimal resources.

Conclusion

The fusion of artificial intelligence and social commerce represents a groundbreaking transformation, promising a symbiotic blend of enhanced user experiences and unparalleled business growth. You can capitalize on this strange symbiosis by meticulously analyzing prospective tools and finding the right solutions for your use cases.

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About the author:

Magnus Eriksen is a copywriter and eCommerce SEO specialist with a Marketing and Brand Management degree. Before he became a copywriter, he worked as a content writer for digital marketing companies like Synlighet AS and Omega Media, where he learned how to do both on-page and technical SEO.

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