Artificial intelligence in retail
Artificial intelligence – several big e-commerce companies such as Amazon, Flipkart and Walmart have realized that mere web presence is not enough to retain their customers.
based on: A review of AI (artificial intelligence) tools and customer experience in online fashion retail – R Pillarisetty, P Mishra – International Journal of E-Business Research (IJEBR), 2022•igi-global.com https://www.igi-global.com/viewtitle.aspx?titleid=294111
How Artificial Intelligence Is Transforming the Customer Experience
Artificial intelligence isn’t new, but its impact has grown dramatically with the rise of the internet and digital commerce. While AI research traditionally focused on technical and engineering challenges, much less attention has been given to how these technologies shape customer experience—especially in marketing.
At its core, AI refers to machines that can perform tasks intelligently and improve through learning. This ability to adapt makes AI an ideal tool for solving complex problems and enhancing digital interactions.
In e‑commerce, AI already powers a wide range of features designed to make shopping easier, more personalized, and more immersive. Examples include:
- Virtual try‑on tools like those offered by LensCrafters, which allow customers to “see” how products look without visiting a store.
- Fit‑prediction systems such as NIKE FIT, which use machine learning to recommend the right size for each customer.
These innovations reduce uncertainty, increase confidence, and ultimately elevate the overall online shopping experience.
As AI continues to evolve, its influence on customer experience will only grow—shaping how products are discovered, evaluated, and purchased in the digital world.
Customer Experience in the Digital Era: More Than Just Products
Modern customers aren’t simply buying products—they’re seeking memorable experiences. This idea, introduced decades ago, holds even more relevance today as much of our shopping takes place online. In digital environments, customers can’t touch or try products, so their entire experience depends on the verbal and visual cues presented on the website. Artificial intelligence in retail
Customer experience spans the entire journey—not just a single transaction. Research shows that people want to feel naturally drawn to a product, not pushed into a purchase. They prefer subtle, engaging interactions that convince them through value and quality rather than pressure.
Online customer experience is often described through four key dimensions:
- Informativeness (Cognitive): How well the site helps customers understand products and make decisions.
- Entertainment (Affective): The emotional appeal—whether the site feels enjoyable or stimulating.
- Social Presence (Social): How interactive or “human” the online environment feels.
- Sensory Appeal (Sensory): The visual and, increasingly, immersive elements that bring products to life.
These dimensions directly shape how satisfied customers feel during their online shopping journey.
Artificial intelligence now plays a major role in elevating these digital experiences. AI-driven recommendations, chatbots, personalized content, and interactive features help create meaningful engagement throughout the customer journey. Artificial intelligence in retail
A term gaining traction in recent years is “Cyber Atmospherics”—the virtual equivalent of in‑store ambience. It refers to how website design, layout, visuals, and interactive elements come together to influence the online customer experience. Just as lighting, music, and decor shape the mood in physical stores, cyber atmospherics shape the emotional and cognitive responses of online shoppers.
Defining E-satisfaction
What Really Drives E‑Satisfaction in Online Shopping?
E‑satisfaction essentially reflects how customers evaluate their online shopping experience compared to traditional in‑store shopping. Early research highlighted that the quality and clarity of information provided on a website—what some call customer information satisfaction (CIS)—plays a central role in shaping how satisfied customers feel. Artificial intelligence in retail
Because online shoppers rely entirely on digital cues, informativeness becomes the core of their experience. Helpful, accurate, and easy‑to‑find information supports customers through every stage of the decision‑making process.
Studies show that e‑satisfaction is shaped by three major elements:
- Convenience – How easily customers can navigate, search, and complete purchases.
- Merchandising – The depth and quality of product descriptions, images, and variety.
- Site design – Visual appeal, user experience, and overall usability.
Customer satisfaction builds in two layers: the immediate satisfaction from the most recent purchase and the cumulative satisfaction formed over multiple interactions with a specific e‑commerce site. A key driver of both is a website’s usefulness—how effectively it offers helpful information and simplifies transactions.
In the last decade, AI has become a major force behind these improvements. Recommendation systems, chatbots, personalized product feeds, and even virtual try‑on experiences all contribute to higher perceived usefulness and, ultimately, greater satisfaction. Artificial intelligence in retail
Researchers often measure these trends using tools like the American Customer Satisfaction Index (ACSI), which tracks how customer perceptions evolve over time. When customers compare their online experiences with offline ones, they evaluate factors such as convenience, product quality, value for money, and product selection—elements consistently shown to influence satisfaction in the digital environment.
AI in Online Apparel Retailing: Driving the Future of Fashion E‑Commerce
India’s e‑commerce sector—especially online fashion—is experiencing explosive growth. This rapid rise is fueled largely by the widespread adoption of smartphones and a surge in online shopping, accelerated further during the pandemic. As more consumers shift to digital platforms, fashion e‑retailers are investing heavily in technology to stay competitive.
According to data from the India Brand Equity Foundation, online apparel accounts for 29% of India’s e‑commerce market, second only to electronics at 45%. With such a significant share, retailers are increasingly turning to advanced technologies—recommendation engines, natural language processing, AI‑powered chatbots, neural networks, and genetic algorithms—to enhance customer experience and boost e‑satisfaction. Artificial intelligence in retail
Researchers like Wang (2014) have analyzed how AI is shaping the online apparel industry, showing that innovative technologies often lead to major market disruptions. AI enables better product availability, more accurate deliveries, and overall smoother shopping experiences (Kati, 2018).
Importantly, AI doesn’t just transform retail operations—it also changes how customers shop. Smart tools can guide shoppers through personalized product suggestions, virtual fit recommendations, and real‑time assistance. As Johnson (2019) notes, AI has become a core technology in today’s online fashion ecosystem.
From mix‑and‑match styling tools to 24/7 support through intelligent chatbots, AI enhances efficiency, reduces return rates, and ultimately increases repeat purchases. For modern fashion retailers, mapping the right AI tools to the customer journey isn’t optional—it’s essential for staying ahead in an increasingly competitive digital marketplace.
Recommendation Engines: Personalizing the Online Shopping Journey
Recommendation engines use machine learning to suggest products that match a shopper’s preferences, based on their browsing behavior and past purchases. One of the most widely used methods is collaborative filtering, which predicts what a customer might like by analyzing patterns from similar users.
These systems continuously learn and adapt, refining suggestions as customers interact with the site. By understanding buying behavior through data mining and behavioral analytics, retailers can deliver more personalized experiences—boosting loyalty, reducing search effort, and improving overall customer satisfaction.
For e‑commerce brands of all sizes, intelligent recommendation tools open the door to global markets by offering shoppers a tailored, engaging experience. Artificial intelligence in retail
Product Reviews: The Powerhouse of Online Shopping Decisions. Artificial intelligence in retail.
Product reviews are one of the most influential elements of e‑commerce. They let customers compare features, assess quality, and evaluate alternatives—all without visiting a physical store. Positive, detailed reviews drive engagement and build trust, while a wide variety of products and opinions strengthens a retailer’s competitive edge.
Artificial intelligence in retail. https://mietwood.com/akceptacja-robotow-w-uslugach-hotelowych
User‑generated reviews are especially credible, providing explicit feedback through ratings and comments, and implicit signals through search and purchase behavior. The broad product variety available online, paired with easy price comparison, enhances customer satisfaction by helping shoppers feel confident they’re getting the best deal.
Modern sites also use digital nudging—subtle design cues that guide faster, more informed decision‑making—further shaping the online shopping experience.
Virtual Try‑Ons: Bringing the Fitting Room to Your Screen
Virtual try‑on technology has become a major innovation in online fashion retail, helping shoppers visualize how products will look and fit—without ever visiting a store. Using 3D modeling and augmented reality, these tools let customers assess size, style, and overall appearance more accurately, which greatly reduces return rates. Artificial intelligence in retail
By turning online product attributes into experience attributes, virtual try‑ons lower the perceived risk of buying apparel or cosmetics online. Whether it’s previewing how a lipstick shade matches your skin tone or seeing how a pair of glasses fits your face, the technology offers an experience close to an in‑store trial.
In India, brands like Lenskart have popularized this feature, allowing users to try on eyewear through realistic 3D models simply by taking a selfie. Research also shows that these immersive tools encourage online purchases by increasing confidence and engagement. Artificial intelligence in retail
Image Interactivity Technology: Making Online Shopping More Immersive
Image Interactivity Technology (IIT) enhances online shopping by allowing customers to interact with products—zooming in, rotating, or mixing and matching items. Rooted in the Stimulus‑Organism‑Response (S‑O‑R) model, IIT explains how website cues influence both a shopper’s emotions (like enjoyment) and thoughts (such as perceived risk), ultimately shaping their behavior on the site. Artificial intelligence in retail
IIT provides two types of cues:
- Utilitarian: tools that support the task of shopping, such as zoom and detailed views.
- Hedonic: elements that make the experience enjoyable, like 3D models and mix‑and‑match features.
These interactive visuals help recreate aspects of the in‑store experience, reducing uncertainty and increasing entertainment value. This has led to a trend called “experiencing the experience”—customers trying out new looks or outfits digitally before buying. Artificial intelligence in retail
Major brands like Nike, Levi’s, H&M, and Speedo now use 3D virtual models and interactive product tools to capture attention, boost engagement, and help shoppers feel more confident in their choices.
Chatbots: The New Face of Customer Service
With the rise of “conversational commerce,” chatbots have become a central part of online customer service. Powered by natural language processing (NLP) and AI, these virtual assistants—similar to Alexa or Siri—can simulate human conversations through websites, apps, and messaging platforms.
Research shows chatbots improve customer experience by answering questions, guiding shoppers, and offering polite, patient assistance based on past customer behavior. Because they use machine learning, they continually improve their responses over time.
However, the experience isn’t always perfect. Customers often report frustration when chatbots misunderstand queries, give irrelevant answers, or get stuck repeating the same response. This highlights the ongoing challenge of balancing automation with accuracy and empathy in digital customer service.
Summary: How AI Is Transforming Online Customer Experience and E‑Satisfaction
The rapid growth of e‑commerce—especially in fashion—has pushed retailers to prioritize not just products, but memorable digital experiences. Online customer experience is shaped by key factors such as informativeness, entertainment, social presence, and sensory appeal. These elements help customers make confident decisions without visiting a physical store and strongly influence overall e‑satisfaction.
Artificial intelligence now plays a central role in enhancing these digital journeys. AI‑powered tools such as recommendation engines, chatbots, virtual try‑ons, and image interactivity technologies personalize the shopping process, reduce uncertainty, and increase engagement. They help customers discover products, visualize fit and style, receive instant assistance, and interact with items more meaningfully.
Product reviews and broad online product variety further boost satisfaction by offering credible feedback, transparent comparisons, and access to the best prices. Combined with digital nudging and smart personalization, these technologies recreate elements of the in‑store experience while adding new forms of convenience and confidence. Artificial intelligence in retail
Overall, AI is reshaping how customers browse, evaluate, and buy—making online shopping more intuitive, immersive, and emotionally satisfying. As these innovations evolve, they will continue to redefine customer expectations and retail competitiveness across global e‑commerce markets.
