GenAIs Game-Changing Impact On Indian Ecommerce Platforms

Our app plays a vital role in guiding in-store customers, blending physical and digital shopping experiences. We’ve implemented QR codes in stores, enabling customers to access more product information online. A key advantage is that we use a single catalogue across both digital and physical channels, ensuring consistency while minimizing the need for additional infrastructure. Our partnership with Google Cloud has been critical in advancing our technology stack. We’ve migrated workloads to the cloud, benefiting from Google’s managed cloud offering across multiple regions.

AI-based personalisation involves collecting and analysing large volumes of customer data, from their purchase history to interactions with a brand, so businesses can create tailored messaging that appeals at each stage of the customer journey. Founded in 2004 by Sheth, Gupshup enables businesses to advertise, communicate, and converse with their customers by leveraging AI and CPaaS. You can foun additiona information about ai customer service and artificial intelligence and NLP. It serves over 45,000 brands across the globe to deliver better customer ChatGPT App experience, and increased revenue while saving costs. By comparing these images with catalogue images listed in product listings, ecommerce platforms can verify whether the products match, thereby enhancing accuracy and customer satisfaction. These areas also have the advantage that they can ground LLMs in use-case specific information – in a website or a company’s enterprise database, thus drastically reducing the risk of  hallucination.

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Buyer apps help sellers make their products discoverable to potential consumers nationwide. Furthermore, GenAI in ecommerce raises privacy concerns due to its utilisation of consumer data for personalised recommendations. Meesho’s Mukherjee said that after implementing AI solutions, the platform has witnessed substantial enhancements in key performance indicators for customer support.

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As the excitement around Artificial Intelligence (AI) starts to level off, businesses are shifting their focus from the hype of AI to the practical realities of integrating AI and Generative AI (GenAI) into their ecommerce operations. These technologies have moved from the fringes of the enterprise to the core of operations, making AI in ecommerce essential for companies to thrive in an incredibly competitive market. “Gupshup’s Buyer App on ONDC brings the vast commerce network to users nationwide, usable in any language, quickly and easily. This will truly transform digital commerce on a population scale in India,” Sheth added. “India’s diverse population uses different mobile tools, varied languages, and possesses different levels of tech-savvy. Delivering conversational experiences via the messaging app is the only way to reach everyone,” said Gupshup’s CEO and founder Beerud Sheth.

This has allowed us to move from traditional on-premises workloads to more efficient cloud-native solutions. Moreover, we’re using Google’s advanced AI and ML tools, like Vertex AI and Gemini, which help accelerate various AI-driven initiatives across the company. Through Google Cloud’s marketplace, we can access and deploy AI models for different use cases, including using generative AI to help modernize our legacy systems. conversational ai in ecommerce Imagine walking into a store where every item on display feels as if it were handpicked just for you—each product perfectly aligned with your taste, needs, and budget. This is the kind of experience Wayfair is aspiring to craft with the help of AI and machine learning (ML). By transforming the online shopping journey into a personalized, intuitive experience, Wayfair wants to redefine how we discover and purchase home décor.

Even better, you can make the move with one of the potentially undervalued stocks introduced below. They can, however, deal with precise queries better than semantic searches, which can be key in an e-commerce context, where shoppers may want to search model numbers or specific brands instead of product categories. While search engines with incorporated GenAI capabilities are often praised for their ability to understand context and interpret intent behind a query, these features are not unique to them. Generative search only adds a new layer of functionality to the original dichotomy of keyword and vector search. GenAI has been trained on a relatively large body of data and is therefore able to access a huge knowledge base of information.

That means another natural use-case for generative AI is as a search engine that can answer natural questions in a conversational manner – a functionality that positions it as a potential competitor to established web browsers. This diverts traffic from outlets, like WIRED, that make money by producing shopping guides, reviews, and other articles, even though the AI results are produced using data scraped from such websites in the first place. This means that while AI is widely discussed as a transformative technology, we’re still in the early stages of seeing its full potential. Early adopters who successfully integrate AI into their ecommerce strategies are likely to gain a significant competitive advantage.

Enhancing User Experience

For example, we’re using multimodal capabilities of large language models to enhance catalogue understanding, extracting detailed product information from images and text. We’re also building models to better understand customer preferences and behaviour patterns, enabling us to deliver more personalized experiences. In customer service, we’re leveraging generative AI to provide quicker, more accurate responses based on service guidelines and past interactions. Finally, we’re investing in personalized content generation to create targeted marketing materials. While predictive analytics can sift through customer data to tailor shopping experiences, generative AI elevates this by offering instant, personalized product recommendations as users explore your site. Additionally, AI-driven chatbots enrich customer interactions by providing responses that are not only precise but also genuinely empathetic, mimicking the warmth of human conversation.

The business, founded in 2015, offers fresh handpicked bouquets on a weekly, bi-weekly, or monthly basis from sustainable farms around the world. It disrupted the floral industry by offering the first farm-to-table floral subscription directly sourced by their farms, revolutionising the way fresh flowers are sent. Launched in 2021 under the aegis of the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC is an open protocol-based network to enable local commerce across multiple segments, including grocery and mobility among others.

SharkNinja’s success is related in part to its ability to innovate solutions and launch products faster than competitors, according to JPMorgan analysts. The company routinely announces new products and line expansions as it works to optimize the supply chain. The new shopping guides highlight generative AI’s potential in ecommerce, creating guides for product categories too niche to normally get the treatment.

Notably, it clocked a 23% month-on-month increase in the transactions on the platform in May. It posted a record 89 Lakh transactions across retail and ride-hailing segments in the same period. Soon, users will also be able to use additional messaging services like Google RCS and voice commands to order.

AI systems are able to more accurately gauge customer interest, demand, and available supply to optimize pricing for that moment. Pricing can be very complicated and AI systems can help, as well as ensuring that the customers are not getting stuck at various parts of the purchasing experience. A case in point is Meesho where a significant portion of chat-based inquiries are now handled by AI-powered chatbots. This shift has enabled the ecommerce platform to scale up its response capabilities, leading to noticeable improvements in key customer experience metrics. So we’re really seeing AI used in the entire customer journey from customer onboarding, to customer purchase, usage, retention, upsell, and ongoing engagement. AI is helping to make for a seamless customer experience, to enable customers to get the value they want from products and services and become engaged, happy, and repeat purchasers.

In recent years, machine learning has become mainstream, allowing platforms to analyse vast amounts of data in real time. Poddar explained that generative AI has further transformed the process by predicting user behaviour without the need for manually inputting parameters. Looking to the future, DBI technology has a key role to play in empowering companies to build strong, lasting relationships with their customers and drive growth in a rapidly evolving AI-accelerated landscape.” However, the business wanted to enhance its gift-giving experience while prioritising customer satisfaction and offering a safe and enjoyable way to use generative AI. Floral subscription and gifting company BloomsyBox.com wanted to launch a Mother’s Day campaign that created a personalised customer experience.

One negative in the quarter was an 80-basis-point gross margin decline due to lower average selling prices. Lululemon produces athletic apparel, footwear and accessories, with an emphasis on technical fabrics and functional designs. Products are sold through third-party retailers and directly to consumers via lululemon.com and company-owned stores. After the table, I discuss each of these potentially undervalued stocks in more detail. Meanwhile, in the office context, generative search tools can provide each employee with a savvy work-buddy whose knowledge spans across all functions and departments. Online shoppers often find that googling a product and the retailer in a combined search will take them to the product much more efficiently than a product search leveraging the e-commerce site’s own tool.

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Executives at the company say its engineers are also exploring more ambitious AI services, including autonomous AI shopping agents that recommend goods to a customer or even add items to their cart. Report Ocean is a leading provider of market research, delivering high-quality insights to help clients across industries achieve their strategic goals. Their reports are designed to enhance market share in today’s competitive landscape by offering innovative and actionable market intelligence. As a trusted source of comprehensive market analysis, Report Ocean is the go-to solution for individuals, organizations, and industries seeking to stay ahead in the market. The in-depth analysis of the report provides information about growth potential, upcoming trends, and South Africa Conversational AI Market. The report promises to provide recent technology trends in South Africa Conversational AI Market and industry insights to help decision-makers make sound strategic decisions.

Despite Gen AI’s potential to reshape ecommerce by refining content, personalisation, and streamlining the shopping journey, its adoption poses challenges. Prior to selecting a product, many users rely on the feedback provided by other customers. However, navigating through a lengthy list of customer reviews can be tiresome, as some reviews may be more informative than others. GenAI streamlines this process, helping users find the most relevant and helpful reviews more efficiently. While many have already integrated several GenAI tools into their repertoire to enhance customer experience and operational efficiencies, others are not too behind in the GenAI adoption race.

However, most Indian companies face significant challenges in the application of predictive analytics and generative AI. Customer data is often scattered across mobile apps, websites, social channels, physical stores, and other touchpoints, making it difficult to consolidate into a single, actionable source. This fragmented data structure hinders AI models from fully understanding and accurately interpreting customer information. By 2030, India is expected to have the world’s second-largest base of online shoppers.

Besides, Gupshup plans to soon offer enterprises to use this conversational commerce feature in their chatbots, making shopping easier for their customers. This app will enable buyers to discover, browse and buy products on the ONDC network via WhatsApp. It provides a shopping experience directly within the Meta-owned messaging platform, eliminating the need to download any additional apps. These innovations are not only helping the company streamline the shopping experience but also driving customer engagement and satisfaction.

• This technology has numerous applications, with demand forecasting being one of the most commonly used.
• Moreover, we’re using Google’s advanced AI and ML tools, like Vertex AI and Gemini, which help accelerate various AI-driven initiatives across the company.
• Report Ocean, a leading strategic consulting and market research firm, in its recent study, estimated South Africa Conversational AI Market size at USD 210.0 million in 2023.
• Only 46% of respondents are leveraging GenAI to enhance customer interactions, and just 32% are using it for personalization — two critical areas for building lasting relationships.
• Moreover, AI can help improve data segmentation, allowing brands to build an accurate picture of their customers.

According to Rajnil Mallik, partner and GenAI GTM leader, PwC India, GenAI’s capability to analyse and summarise unstructured data has bolstered traditional predictive analytics functions like cross-selling, up-selling, and customer retention. Moreover, it has enhanced conversational agents, leading to improved product listings and more intuitive customer reviews. “GenAI is playing a crucial role in summarising customer reviews and extracting critical aspects about various product features. By summarising customer sentiment along different dimensions, it effectively enhances the productivity of user experiences,” Mukherjee said. As more companies strive to extract maximum value from it, those that adopt scalable and robust AI solutions will not only thrive but also lead the industry. Whether it’s precision in demand forecasting, dynamic pricing, or personalized customer engagement, generative AI is poised to drive India’s fast-growing eCommerce industry to the next level.

• Delivering conversational experiences via the messaging app is the only way to reach everyone,” said Gupshup’s CEO and founder Beerud Sheth.
• This imbalance highlights a common misconception about AI’s true value in ecommerce.
• Highlights of the company’s last earnings release included 33% net sales growth versus the prior-year quarter and a 160-basis-point increase in adjusted gross margin.
• We’re also building models to better understand customer preferences and behaviour patterns, enabling us to deliver more personalized experiences.

As Ivan Ostojic, Chief Business Officer at Infobip, argues “Infobip is committed to enabling businesses to engage with their customers in the most innovative and effective ways possible. This Mother’s Day activation is just one of the many ways our conversational AI brings people together.” Moreover, AI can help improve data segmentation, allowing brands to build an accurate picture of their customers. Personalised, conversational AI also helps reduce the messages a brand needs to send to convert customers, decreasing digital ad spend. Meanwhile, ONDC is expanding its services by entering new segments and onboarding new participants.