Precision Marketing Strategy for E-Commerce by Using Artificial Intelligence Technology

Abstract

Precision marketing in e-commerce powered by artificial intelligence (AI) has become a key tactic, profoundly affecting consumer engagement, transaction rates, and revenue growth. This report investigates the way AI has influenced e-commerce and provides specific, data-driven examples from leading companies. Notably, Amazon's recommendation engine, which is powered by AI, generates an additional $34 billion in sales per year, underscoring the revolutionary impact of AI on consumer engagement. The 10% increase in completed transactions due to eBay's dynamic pricing policy, made possible by AI, has ended up resulting in significant transactional revenue increases. Alibaba's Taobao platform, which mainly relies on AI, has generated impressive income, demonstrating the promise of AI. Opportunities occur as a result of data privacy developments, the democratization of AI through AI-as-a-service solutions, as well as the persistence of integration and privacy concerns.