The rise of AI has significantly transformed the retail and e-commerce landscape over the past year. Beyond simply boosting productivity, AI is reshaping how consumers discover, interact with, and purchase products.
We all know SEO has been on a slippery slope, however of late, it’s been picking up speed. Recent advancements, such as Perplexity AI’s conversational shopping assistant, highlight how technology is evolving to meet consumer demand for more intuitive and engaging experiences. These tools allow users to research products, find tailored recommendations, and even complete purchases—all through conversational prompts and visual inputs.
Imagine asking, “What are the best boots for a ski trip?” and receiving curated options with thoughtful explanations, or snapping a photo of a product and instantly finding similar items online. Innovations like these reflect the growing expectation for seamless and personalised shopping experiences, where convenience and clarity take centre stage.
As we move toward 2025, these advancements, combined with technologies like Virtual Reality (VR) and Augmented Reality (AR), will further redefine the digital shopping landscape. Data from InsightAce Analytic indicates that the AI-enabled e-commerce market is projected to soar to US$16.8 billion by 2030, illustrating how rapidly the space is evolving.
The question for retailers and brands is how they will adapt to meet these new consumer expectations – less clicks, better outcomes. To prepare, here are five key ways AI will shape e-commerce in the near future:
1. Hyper-personalisation
Research by Twilio found that 79% of Australian consumers will increase their loyalty to and spending on a brand when offered personalised experiences. AI is enabling retailers to do just that, gathering insights from browsing habits, past purchases, and even social media activity to create highly contextualised and meaningful experiences. From tailored recommendations to dynamic messaging, hyper-personalisation drives deeper connections with consumers and builds loyalty.
In today’s competitive retail landscape, businesses that can meet evolving consumer demands for relevance and personalisation will have a distinct advantage.
2. Seamless interactions
AI is driving a shift from transactional shopping to experiential shopping. Consumers no longer want clunky add-to-cart processes; instead, they expect frictionless, engaging interactions.
Advancements like conversational AI and visual product searches are blurring the lines between inspiration, research, and purchase. Whether it’s receiving curated product options based on a natural language query or leveraging visual search tools to find similar items, the focus is on reducing effort and increasing confidence for shoppers.
This shift caters to a new generation of consumers who prioritise convenience and immediacy, while also empowering brands to deliver more memorable shopping journeys.
3. Real-time content generation
AI is revolutionising how brands create and optimise content. Retailers can now generate tailored product descriptions, blogs, and promotional materials in seconds, boosting SEO performance and attracting more customers.
What’s exciting is the potential to combine this technology with dynamic visuals, interactive elements, and contextual messaging to capture attention and drive engagement. Whether it’s a personalised shopping guide or a product comparison, AI-powered content allows brands to connect with consumers at precisely the right moment.
4. Augmented reality and conversational shopping
AR and conversational AI are two technologies set to dominate ecommerce.
Augmented reality tools allow shoppers to see products in their own environments—whether it’s furniture in their living room or sunglasses on their face—bridging the gap between online and physical shopping. Virtual try-ons and 3D product views make the experience more tangible, helping consumers feel more confident in their purchases.
Conversational AI is also transforming how we shop. Tools like Perplexity’s assistant demonstrate how natural language interfaces can elevate ecommerce, offering tailored recommendations and insights in response to simple queries. These experiences feel less like searching and more like receiving personalised advice, creating a deeper sense of connection between consumers and brands.
5. Smarter returns management
Returns are a costly challenge for retailers, but AI offers solutions. By analysing customer behaviour and product feedback, AI can predict which products are more likely to be returned and adjust recommendations accordingly.
Smarter return processes not only save time and money for businesses but also create a better experience for consumers, who are less likely to feel the frustration of buying products that don’t meet their expectations. In turn, this builds trust and loyalty—critical in today’s competitive market.
Looking ahead
As we look to 2025 and beyond, one thing is clear: the role of AI in e-commerce is just beginning to unfold. From personalisation to augmented reality and conversational shopping, consumers are demanding richer, more intuitive, yet simpler experiences—and retailers must adapt.
The brands that succeed will be those that embrace these trends and prioritise the consumer journey, offering not just products but seamless, engaging interactions that make shopping enjoyable and effortless.
The future of e-commerce isn’t just about what we buy but how we experience it—and AI is shaping that experience in ways we’re only starting to imagine.
Nick Morgan is CEO & founder of Vudoo.