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Technology is pushing the boundaries of commerce like never before. Artificial intelligence (AI) is one of the primary driving technologies at the forefront of the commerce evolution, using advanced algorithms to revolutionize marketing and personalize customer experiences. As of 2024, AI adoption in e-commerce is skyrocketing, with 84% of brands already using it or gearing up to do so.
This article explores the AI revolution coming to commerce, focusing on what makes AI a driving force for e-commerce in particular, and the ways it’s reshaping how businesses engage with consumers.
Understanding the AI revolution in commerce
AI is quickly reshaping commerce as we know it by democratizing access to sophisticated tools once reserved for large corporations, breaking down functional silos within organizations, and integrating data from multiple sources to achieve deeper customer understanding. It’s paving the way for a future where every brand interaction is uniquely crafted for the individual, powered by AI systems that anticipate preferences proactively.
AI is a broad term that encompasses:
- Data mining: The gathering of current and historical data on which to base predictions
- Natural language processing (NLP): The interpretation of human language by computers
- Machine learning: The use of algorithms to learn from past experiences or examples to enhance data understanding
The capabilities of AI have significantly matured into powerful tools that can improve operational efficiency and boost sales, even for smaller businesses. They have also fundamentally changed how businesses interact with customers and handle operations. As AI continues to develop, it has the potential to provide even more seamless, personalized, and ethically informed commerce experiences and establish new benchmarks for engagement and efficiency in the marketplace.
Four benefits of the AI revolution coming to commerce
Major commerce players like Amazon have benefited from AI and related technologies for a while. Through machine learning, they’ve optimized logistics, curated their product selection, and improved the user experience. As this technology quickly expands, businesses have unlimited opportunities to see the same efficiency, growth, and customer satisfaction as Amazon. Here are four primary benefits of AI adoption in commerce.
1. Data-driven decision making
AI gives businesses powerful tools to analyze large amounts of data more quickly and accurately than a person. Through advanced algorithms and machine learning, AI can sift through historical sales data, customer behavior patterns, and market trends to uncover insights and suggest actions that might not be immediately obvious to human analysts. By transforming raw data into actionable insights, AI empowers businesses to make more informed decisions, reduce risks, and capitalize on opportunities.
As a real-world example, Foxconn, the largest electronics contract manufacturer worldwide, worked with Amazon Machine Learning Solutions Lab to implement AI-enhanced business analytics for more accurate forecasting. This move improved forecasting accuracy by 8%, saved $533,000 annually, reduced labor waste, and improved customer satisfaction through data-driven decisions.
2. A better customer experience
AI is set to make customer interactions smoother, faster, and more personalized by recommending products based on preferences and behaviors, making it easier for customers to find what they need.
When consumers visit an online store, AI also provides instantaneous help via a chatbot that knows their order history and preferences. These AI-powered assistants offer real-time help like a knowledgeable store clerk. They give the appearance of higher-touch support and can answer basic questions at any hour, provide personalized product recommendations, and even troubleshoot issues. Chatbots free up human customer service agents for more complicated matters, and these agents can then use AI to obtain relevant information and suggestions for the customer during an interaction.
3. Personalized marketing
Data-driven personalization of the customer journey has been shown to generate up to eight times the ROI, as data shows 71% of consumers now expect personalized brand interactions. Until AI came around, personalization at scale was complex to achieve. Now, gathering and processing data about a customer’s shopping experience is easier than ever based on lookalike customers and past behavior.
Many businesses have adopted AI to glean deeper insights into purchase history, web browsing, and social media interactions to drive better segmentation and targeting. With AI, advertisers can analyze behavioral and demographic data to suggest products someone is likely to love. Consumers can now browse many of their favorite online stores and see product recommendations that perfectly match their tastes and needs.
AI can also offer special discounts based on purchasing habits, and send personalized emails with products and content that interest customers to make their shopping experience more engaging and relevant. This personalization helps businesses forge stronger customer relationships.
Personalization across digital storefronts
Retail media involves placing advertisements within a retailer’s website, app, or other digital platform to help brands target consumers based on their behavior and preferences within that environment. Retail media networks (RMNs) expand this capability across multiple retail platforms to create seamless advertising opportunities throughout the customer journey. Integrating AI into RMNs can improve personalization across digital storefronts with personalized, relevant ads and custom offers in real time that improve the customer experience.
4. Operational efficiency
AI can also be beneficial on the back end, enabling more efficient resource allocation, pricing optimization, efficiency, and productivity.
Customers can be frustrated when they visit a store for a specific product only to find it out of stock or unavailable in a particular size. With AI, these situations can be prevented through algorithms that forecast demand for certain items. Retailers like Amazon and Walmart both use AI to predict demand, with Walmart even tracking inventory in real time so managers can restock items as soon as they run out.
AI can automate and streamline operational tasks to help businesses run smoother, faster, and more cost-effective operations. It can:
- Offload tedious data entry, scheduling, and order processing tasks for greater fulfillment accuracy.
- Analyze historical data and market trends, predicting demand to help businesses optimize inventory, reduce waste, track online and in-store sales, and prevent shortages.
- Forecast demand levels, transit times, and shipment delays to make better predictions about logistics and supply chains.
- Improve data quality using machine learning algorithms that find and correct product information errors, duplicates, and inconsistencies.
- Adjust prices based on competitor pricing, seasonal fluctuations, and market conditions to maximize profits.
- Pinpoint bottlenecks, identify issues before they escalate, and provide improvements for suggestions.
Future trends and predictions
If you want to stay ahead in e-commerce, it’s just as important to know what’s coming as it is to understand where things are today. Here are some of the trends expected to shape the rest of 2024 and beyond.
Conversational commerce
Conversational commerce allows real-time, two-way communication through AI-based text and voice assistants, social messaging apps, and chatbots. Generative AI advancements may soon enable more seamless, personalized interactions between customers and online retailers. This technology can improve customer engagement and satisfaction while providing helpful insights into preferences and behaviors for better personalization and targeting.
Delivery optimization
AI-driven delivery optimization uses AI to predict ideal routes for each individual delivery, boosting efficiency, reducing costs, promoting sustainability, and improving customer satisfaction throughout the delivery process.
Visual search
AI-driven visual search is quickly improving in accuracy, speed, and contextual understanding. Future developments may integrate seamlessly with augmented reality (AR) so shoppers can search for products by pointing their devices at physical objects. Social media and e-commerce platforms may soon incorporate visual search more prominently, allowing users to find products directly from images.
AI content creation
AI is already automating and optimizing aspects of content production:
- Algorithms can generate product descriptions, blog posts, and social media captions personalized to specific customer segments.
- AI tools also enable the creation of high-quality visuals and videos.
- NLP advancements ensure content is compelling and grammatically correct.
- AI-driven content strategies analyze consumer behavior and refine messaging to meet changing preferences and trends.
This automation speeds up content creation while freeing resources for strategic planning and customer interaction.
IoT integration
Integrating AI with Internet of Things (IoT) devices could help make the ecosystem more interconnected in the future. AI algorithms can use data from IoT devices like smart appliances, wearables, and sensors to gather real-time insights into consumer behavior, preferences, and product usage patterns. This data enables personalized marketing strategies, predictive maintenance for products, and optimized inventory management. AI-driven IoT data analytics can also streamline supply chain operations to reduce costs and inefficiencies.
Fraud detection and security
There will likely be an increased focus on the ethical use of AI and data privacy regulations to strengthen consumer trust and transparency. AI-powered systems will get better at detecting and preventing fraud in e-commerce transactions, which will heighten security measures for both businesses and consumers.
Chart the future of commerce with Experian
AI has changed how marketers approach e-commerce in 2024. With AI-driven analytics and predictive capabilities, marketers can extract deeper insights from extensive data sets to gain a clearer understanding of consumer behavior. This enables refined segmentation, precise targeting, and real-time customization of messages and content to fit individual preferences.
Beyond insights, AI automates routine tasks like ad placement, content creation, and customer service responses, freeing marketers to concentrate on strategic planning and creativity. Through machine learning, marketers can predict trends, optimize budgets, and fine-tune strategies faster and more accurately than ever. The time to embrace AI is now.
At Experian, we’re here to help you make more data-driven decisions, deliver more relevant content, and reach the right audience at the right time. Using AI in your commerce marketing strategy with our Consumer View and Consumer Sync solutions can help you stay competitive with effective, engaging campaigns.
Contact us to learn how we can empower your commerce advertising strategy today.
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Originally appeared in Streaming Media Magazine Navigating today’s fragmented, privacy-conscious media landscape is a bit like stepping into a dense jungle. The buy-side—marketers, agencies, and demand-side platforms (DSPs)—must find their way through signal loss, measurement challenges, and evolving consumer expectations. But this isn’t just a challenge; it’s a strategic opportunity. Let’s dive into how buy-side players can use Experian’s advanced data and identity solutions to be their guide through the jungle and emerge as winners. Marketers: Maintaining personalization and measurement across channels Marketers are navigating an increasingly fragmented media jungle, where the deprecation of signals like cookies, mobile ad IDs (MAIDs), and IP addresses makes finding and understanding audiences feel like guesswork. To chart a clear path, marketers need a reliable compass—and identity resolution provides exactly that. A strong identity provider, grounded in offline data like names, addresses, phone numbers, and emails, acts as a guide through the chaos. By connecting offline signals with digital identifiers in a privacy-first manner, marketers can uncover the relationships between households and devices, then enrich those profiles with valuable marketing data. With a complete view of your customers, you gain deeper insights and can seamlessly reach the right audience across channels—even as signals evolve. It’s a marketer’s North Star—constant, dependable, and always pointing you in the right direction. How Experian can help Imagine a financial services brand aiming to connect with high-net-worth individuals across today’s fragmented media world. They’ve excelled on social and search but now want to dive into connected TV (CTV) and other emerging channels. Enter Experian’s Digital Graph. By seamlessly connecting digital identifiers like MAIDs, CTV IDs and hashed emails (HEMs), our graph becomes the bridge that unifies their audience across every channel. Suddenly, the same audience that saw their ad on social during lunch is now watching a personalized spot on CTV that evening, all thanks to Experian. The result? A cohesive campaign that delivers hyper-relevant messages, stronger engagement, and measurable success. With Experian, fragmentation becomes connection, and personalization stays powerful across the entire media landscape. Agencies: Strategic partners in a fragmented world Agencies are the architects of the identity jungle, building bridges that guide brands through fragmentation and deliver campaign success. Thriving in this terrain requires data solutions that create actionable insights, enable personalization, and drive measurable outcomes. To meet marketers’ demands, many agencies have invested heavily—acquiring data companies or forging strategic partnerships to strengthen their foundations in data and identity solutions. These investments help them connect fragmented audience data and unlock new opportunities for their clients. But even with in-house capabilities, agencies often need more—more attributes, more integrations, and greater connectivity. In the jungle of identity, success isn’t just about building better data assets; it’s about ensuring those assets can be utilized across platforms. How Experian can help Picture a large independent agency ready to step up its game—expanding beyond its middle-market niche to attract enterprise-level clients. But to play in the big leagues, they need more than a solid strategy; they need data and identity solutions that deliver a competitive edge. Enter Experian. With our rich identity graph and deep customer insights, the agency can unlock new opportunities for its clients. Imagine offering enterprises the ability to connect fragmented audience data, create hyper-targeted campaigns, and measure success across every channel. The payoff? The agency doesn’t just win over new enterprise clients; it strengthens relationships with existing customers by proving it can navigate today’s fragmented media landscape with precision and measurable impact. With Experian, the agency becomes an indispensable strategic partner in the data-driven advertising world. DSPs: Navigating signal loss with a multi-ID strategy For DSPs, navigating the identity jungle means forging a path through the winding trails of cookieless strategies. With third-party cookies fading and no single identity solution—like Unified ID 2.0 (UID2)—able to cover all media engagement, DSPs must adapt to a multi-ID world. The challenge is twofold: finding flexible solutions to manage a multitude of identifiers while staying compliant with a growing number of state-level privacy laws. It’s not just a technical problem; it’s a call for strategic vision. And the way to thrive in this ever-changing terrain is to invest in identity solutions that connect digital and offline identifiers to a single customer profile. How Experian can help Imagine a DSP navigating a complex web of identifiers—UID2, HEMs, proprietary IDs—while juggling compliance with evolving privacy laws. Experian steps in as the ultimate connector. Our identity solutions, powered by stable offline data, are signal-agnostic and integrated across the advertising ecosystem. This ensures that DSPs can confidently manage multiple identity frameworks, keeping campaigns targeted, measurable, and compliant. With Experian, DSPs gain more than a stopgap solution; they get a future-proof identity strategy. The result? Better targeting, smoother omnichannel execution, and the strategic edge needed to thrive in a fragmented, multi-ID world. Turning identity challenges into a strategic advantage The identity jungle is a thriving ecosystem for those with the right guide. Experian helps marketers, agencies, and DSPs chart the course by unifying multiple identifiers into a single, complete customer profile. With the right tools (and a good map), buy-side stakeholders can learn more about their customer, reach audiences across channels, and deliver personalized marketing. Read our companion article to learn how the sell-side is approaching data and identity challenges. Read now Get started today Latest posts

We spoke with industry leaders from Ampersand, Basis Technologies, Captify, Cuebiq, CvE, Fetch, Madhive, MiQ, and Samsung to gather insights on how innovations in data and identity are creating stronger consumer connections. Here are five key insights to consider. 1. Build on trust with first-party data Stricter privacy regulations and growing customer expectations mean businesses must rethink how they gather and use data. A robust first-party data strategy centers on gathering high-quality data, such as behavioral and transactional data. By using behavioral, lifestyle, and purchasing data, brands can craft personalized strategies that align with their goals. This approach balances effective targeting with building trust and complying with privacy rules. Integrating identity solutions like Unified I.D. 2.0 (UID2) and ID5 into existing data strategies improves interoperability across platforms while keeping user privacy intact. These tools help create more effective campaigns. "We've been preparing and leaning into educating our clients around the value of first-party data. These are very important and primary considerations in any of our campaigns."April Weeks, Basis Technologies 2. Align metrics with business goals To demonstrate clear value, campaigns need to tie their outcomes to broader goals. Relying only on click-through rates or CPMs won’t cut it. Metrics that measure meaningful results, like driving sales or increasing customer retention, provide greater transparency than surface level data, like clicks or impressions. A continuous feedback loop between targeting and measurement ensures campaigns can be refined to better align with business objectives. This feedback helps marketers understand who they are targeting and how those audiences are driving key business results. Shifting focus to metrics that resonate with stakeholders ensures that marketing efforts are evaluated based on their true contribution to the company's objectives. "The television industry has access to more data than ever before, and at Samsung Ads, our ACR technology helps us provide valuable insights about what content and ads are being viewed. This abundance of data enables us to support clients in aligning their campaigns with business objectives effectively."Justin Evans, Samsung Ads 3. Personalize experiences to boost engagement Personalization drives stronger customer relationships by delivering tailored experiences to individual customer needs. Using data-driven insights to fine-tune offers and messaging makes interactions more relevant, strengthening brand loyalty. Combining behavioral, lifestyle, and transactional data provides a comprehensive understanding of the customer journey and ensures each touchpoint feels personal. Testing and iterating on personalization strategies also helps identify which data and approaches yield the best results. Scaling these efforts means customers receive the right messaging at the right time, and businesses see better outcomes. "Every business should be building a data strategy that thinks about the different versions of data that exist and how they bring that together. They don't necessarily need to own all of it but have a clear rationale and strategy about where you're using which data sets."Paul Frampton, CvE 4. Utilize advanced measurement tools for smarter decisions Improving the effectiveness of campaigns starts with using sophisticated measurement tools to gain actionable insights. Using analytics like brand lift studies, foot traffic analysis, app download tracking, incrementality, and share of search allows marketers to understand the full impact of their efforts. With these resources, teams can pinpoint what’s working, make real-time adjustments, and refine their approach. This adaptability ensures budgets are used as effectively as possible. Learn how Swiss Sense measured marketing outcomes using Mosaic® "We are playing a leading role in democratizing new tools for local advertisers. By mimicking the marketing funnel mentality, we've introduced solutions ranging from measuring brand lift to tracking foot traffic and app downloads."Luc Dumont, Madhive 5. Adapt quickly to stay competitive The only constant in advertising is change. Adapting quickly to new technologies and consumer behaviors keeps businesses competitive. A culture of agility fosters innovation, making it easier to respond to industry shifts and discover new opportunities. Companies that anticipate change and invest in modern data solutions position themselves for long-term growth. Whether it’s adjusting to privacy updates, exploring emerging tech, or staying flexible, businesses must continuously invest in adapting their platforms and strategies. "Falling behind is not really an option. There's always a change in advertising and in data where there's a new horizon. The people who stay close to that and innovate will always follow it."Amelia Waddington, Captify Shaping the future Building meaningful consumer connections requires advertisers to combine robust data strategies with flexibility and innovation. By focusing on these five considerations, marketers can adapt to today’s challenges while preparing for what’s ahead. Connect with our experts Latest posts

Agencies, platforms, and marketers stand at the crossroads of transformation, as privacy regulations tighten, technology accelerates, and consumer behaviors evolve. Yet these challenges also present extraordinary opportunities. Our 2025 Digital trends and predictions report highlights five trends that will shape 2025 and digs into: What’s changing in the market How to keep learning about your customers How to reach your customers in different places How to measure what’s really working along the way In this blog post, we’ll give you a sneak peek of three of these trends — from cracking the code of signal loss to tapping into the buzz around connected TV (CTV) and stepping up your omnichannel game. Think of it as a taste test before the main course. Ready for the full menu? Download our report to get the lowdown on all five trends. Download now 1. Signal loss: A rich appetizer of alternate ingredients As traditional cookies crumble, marketers need fresh ingredients to keep the flavor coming. Already, about 40% of browser traffic doesn’t support third-party cookies, and marketers are spicing things up with first-party data, alternative identifiers like Unified I.D. 2.0 (UID2) and ID5, and contextual targeting strategies. In fact, 50% more of our clients received alternative IDs (UID2, ID5, Hadron ID) in their Digital Graph in 2024 compared to 2023. The number of alternative IDs resolved to individuals in our Digital Graph increased by 30% year-over-year – as everyone looks beyond the cookie jar. There is no secret sauce to replace cookies. Instead, expect a multi-ID recipe that brings together different identifiers, unified by an identity graph. This approach turns a fragmented pantry of data into a cohesive meal, giving you a complete view of your customer on every plate. 2. The rising power of CTV: A hearty entrée of opportunities CTV is quickly becoming the main dish on the streaming menu, as viewers load up on their favorite shows. While CTV is slated to make up 20% of daily U.S. media consumption by 2026, advertisers are still holding back on pouring in the ad spend. To unlock its full flavor, marketers need to whip up solutions like frequency capping and unified audience activation. Although CTV will account for 20% of daily U.S. media consumption by 2026, it’s projected to command only 8.1% of ad spend. Frequency capping and unified audience activation solutions will be key to unlocking CTV’s full potential. By 2025, nearly half of CTV "diners" will choose free ad-supported streaming TV (FAST). Marketers need strategies to prevent ad overexposure. With 50% of U.S. consumers avoiding products due to ad overload, and 30% of marketers willing to increase their CTV spend if frequency capping improves, unified identity solutions help ensure every impression is served just right. 3. Omnichannel: A flavorful fusion plate No one likes a one-flavor meal. Marketers are moving beyond single-channel “side dishes” to omnichannel “fusion feasts” that blend direct mail, digital, CTV, and retail media networks (RMNs) into a truly cohesive culinary experience. Even though only 21% of global B2C professionals currently put omnichannel at the top of their shopping list, the growing demand for seamless, audience-first campaigns is heating up. In 2025, having an audience-first approach will be like having a perfect pairing for every course. Unified identity solutions act as your master sommelier, ensuring that each channel complements the next, and every customer enjoys a well-rounded, memorable journey. Vertical trends: A dessert sampler from four unique kitchens Different markets have their own signature flavors. In Auto, crossover utility vehicles (CUVs) claim 51% of new vehicle registrations, and consumers in the 35-54 age group and families are the primary buyers. Automotive marketers should prioritize CUV advertising with a strong focus on family-oriented and income-appropriate messaging In Financial Services, marketers need to anticipate shifts in consumer behavior tied to economic conditions, such as increasing demand for deposit products when interest rates are high. For insurance, aligning campaigns with life events, like new home purchases or marriage, can maximize engagement. In Healthcare, advertisers are prioritizing personalized, regulation-compliant campaigns that address social determinants of health (SDOH). In Retail, advertisers are increasingly activating on both CTV and social platforms, with many managing their own in-house campaigns. While larger brands often rely on media agencies, a shift toward in-house media buying is emerging among some bigger players, offering more control over audience targeting and performance metrics. Our report covers each vertical’s unique menu, helping you select the right “ingredients” for your customers. With the top Experian Audiences on hand, you can create feasts that delight, nourish, and convert. Hungry for more? Download our full menu The three “samples” you’ve just tasted are just the starters. Our 2025 Digital trends and predictions report serves up five insights, complete with strategies, data, and tools to help you adapt, scale, and thrive in 2025. Ready for the full menu? Download our report now and discover all five trends that will shape your marketing “cookbook” in 2025. Bon appétit! Download now Experian's U.K. 2025 advertising trends This article highlights the major advertising trends set to shape the U.S. market in 2025, but significant industry changes are happening on a global scale. For a more comprehensive look at worldwide trends, check out Experian's U.K. 2025 advertising trends. Read now Contact us Latest posts