The Role of AI in Conversational Commerce

The Role of AI in Conversational Commerce

Naveen Joshi 23/04/2022
The Role of AI in Conversational Commerce

Artificial intelligence (AI) plays a crucial role in conversational commerce by providing businesses advanced chatbots and virtual assistants to engage in a personalized way with customers.

Conversational commerce is the new buzzword in town and many organizations are adopting it as a part of their marketing, sales, and customer care activities.

Conversational commerce is an AI-infused technology that helps humans to interact with machines more naturally and conversationally. A recent Facebook study revealed that 53% of consumers are more likely to shop with a business they can message to. According to Statista, conversational commerce is expected to grow almost sevenfold by 2025, amounting to some 290 billion U.S. dollars. This highlights that conversational commerce is providing consumers with more convenience while buying products and also encouraging organizations to shift from traditional marketing styles and to improve their marketing tactics.

Conversational Commerce: From Hype to Reality


Humans prefer to express their desire for a particular product in their natural language. Conversational commerce technology allows brands to interact with their customers on their choice of platform. This technique helps enhance customer experience and enables brands to connect with their customers on a much deeper level, which improves customer loyalty and satisfaction.

Progress in AI technology has changed the current design of conversational interfaces and provided end-to-end learnability and flexibility with response generation. Moreover, SDK is delivered to customers who are willing to start with advanced dialog flows. For instance, conversational workflows, in online retail, begin on the website and need to be further handled through messaging interfaces. Furthermore, conversational platforms include event processing and triggering features that initiate conversations with users instead of waiting for them to start it, such as telling customers that the product they are interested in is out of stock and notifying them as soon as the product is available. Sometimes there arises a situation, where customers try to compound things in a sentence, for instance, “I loved this dress but will it suit me?” This compound sentence says that the customer is willing to buy the dress and at the same time is confused whether the dress will look good on her or not. Understanding such compound sentences is important to keep customers satisfied.

Conversational Commerce: What Lies Ahead

With further advances in AI technology, the use of chatbots and other conversational channels will proliferate. Already, there are startup teams who are teaching chatbots real empathy: KOKO is working to create a chatbot that can respond to any kind of emotion, diverse set of questions, and will understand the difference between a curt or angry response or a casual or unfazed response. Furthermore, increasing customer’s trust in new payment technologies and mobile payment solutions will show both businesses and customers the real use of conversational commerce. Even if industries are not willing to utilize a chatbot today or in the future, they must start interacting with their customers over conversational channels.

The world loves a good conversation, and with advances in AI, conversational commerce is opening up ways for businesses to interact with their customers directly and more conversationally, providing them with a more meaningful and natural experience.

Share this article

Leave your comments

Post comment as a guest

terms and condition.
  • No comments found

Share this article

Naveen Joshi

Tech Expert

Naveen is the Founder and CEO of Allerin, a software solutions provider that delivers innovative and agile solutions that enable to automate, inspire and impress. He is a seasoned professional with more than 20 years of experience, with extensive experience in customizing open source products for cost optimizations of large scale IT deployment. He is currently working on Internet of Things solutions with Big Data Analytics. Naveen completed his programming qualifications in various Indian institutes.

Cookies user prefences
We use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.
Accept all
Decline all
Read more
Tools used to analyze the data to measure the effectiveness of a website and to understand how it works.
Google Analytics