Generative artificial intelligence (GenAI) in e-commerce market is projected to grow to about $2.1 billion by 2032 from $529.5 million in 2022, with an expected 14.9 per cent compounded annual growth rate (CAGR), according to French multinational information technology services and consulting company Capgemini.

In a report titled ‘E-commerce 2.0: Outcome-based personalized shopping with generative AI’, the company said many companies are learning how GenAI can liberate their employees from routine tasks and improve the quality of customer engagement.

By exploring the technology’s automation potential early on, these companies will be ahead of competitors and closer to providing better customer personalisation that prioritises problem-solving over mere product and service delivery. This will open the door to more intuitive, conversation-driven interactions as well as new model opportunities, the report said.

As GenAI advances, however, even chat interfaces used for search and discovery will no longer be necessary. With the tremendous amount of data collected, the technology will know the customer so well that it will be able to predict their individual needs and wants without search, it noted.

This level of personalisation will fundamentally change the way customers make purchases, as the system becomes an extension of their own decision-making processes, it said.

As businesses explore how they can enable better customer experiences using GenAI, they will run into several challenges that include bias, inaccuracy, data privacy and compliance risks. By knowing these challenges upfront, e-commerce businesses can better prepare their AI solutions to not only deliver more personalised experiences but also uphold ethical and legal compliance standards, the report said.

Several leading e-commerce brands are already using GenAI. GenAI can fill device screens with exactly what customers want to see; create promotions for brands on the fly; help create a wide, rich range of content to make problem-solving for customers fast and enjoyable; and take over many of these tasks to create, build out, then enhance the product catalogue using internal and external data sources.

Fibre2Fashion News Desk (DS)

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