From Amazon to Spotify, big brands are embracing AI tools to personalize their marketing campaigns and shopping experiences. Etsy analyzes users’ browsing history, purchases, and favorite items to deliver an advanced AI-powered search personalization. Netflix also shows users’ favorite content based on viewing habits, ratings, and watch times.
A McKinsey 2025 study shows that 90% of business leaders expect AI to drive revenue growth, while 92% say they will increase AI investments over the next 3 years. Moreover, about 55% of businesses plan to increase their current investments in AI by at least 10%.
All these signs indicate how AI tools will reshape the e-commerce landscape in the near future. In this article, we’ll explore how e-commerce AI tools will help your business drive higher revenue in 2025 and our top picks.
What Are E-Commerce AI Tools?
E-commerce AI tools are specifically designed to help e-commerce businesses offer better services and drive revenue by leveraging artificial intelligence and machine learning. These tools can automate many processes and implement personalization across sales channels. Website personalization, chatbots, self-checkout systems, personalized recommendations, sales forecasting, and analytics – AI tools have diverse use cases in the e-commerce sector.
Types of E-Commerce AI Tools
AI is used to create a wide range of e-commerce solutions. AI-powered tools are typically designed to automate shopping processes, and enhance search experiences, product discovery, and much more.
How E-Commerce AI Tools Work
To integrate AI tools into your e-commerce processes, it’s important to understand how they work in sequence. Here’s how an e-commerce AI tool typically works:
1. Collecting and Analyzing Customer Data
Collects data from various sources, including websites, apps, transaction logs, and devices. AI tools can also access external sources like social media signals and reviews to fetch data. AI tools recognize patterns in consumer behavior to create actionable insights.
2. Training AI Models for Decision-Making
It’s important to train AI models by feeding them the necessary data. This AI model training teaches the AI to make accurate predictions and recommendations.
3. Integrating AI Tools with E-Commerce Platforms
The trained and tested models are ready for integration into e-commerce platforms, such as websites, mobile apps, ERP systems, and other channels.
4. Continuous Learning for Better Performance
Advanced AI tools are designed to learn continuously. E-commerce AI tools typically improve by analyzing outcomes, customer feedback, and operational data. They get better at predicting future events and patterns, delivering more accurate responses.
Benefits of Using E-Commerce AI Tools
E-commerce AI tools are typically designed to handle specific challenges or use cases. However, below are the most common benefits that an e-commerce AI tool offers.
- Higher Conversion Rates: AI tools are great for recommending products that are most likely to appeal to customers based on their unique past behavior and preferences. AI-powered personalization can increase conversion rates by 20-30%. Plus, AI tools can improve customer experience and drive higher conversions by offering on-site visual try-ons, personalized recommendations, advanced search options, and self-checkouts.
- Improved Customer Retention: AI tools help e-commerce companies design personalized campaigns and experiences tailored to individual behavior, preferences, and timing. And this, in turn, improves customer retention. AI-powered loyalty programs can increase customer retention by 20%. Moreover, businesses using AI analytics to predict customer behavior also see a 30% increase in customer retention.
- Faster Product Discovery: A Salesforce study reveals that 39% of shoppers rely on AI for product inspiration and discovery. Among them, about 50% are Gen Z consumers, indicating that the use of AI for product discovery is increasing among younger generations. Soon, we may see many more people rely on AI tools to discover and research products. Brands can integrate chatbots, virtual try-ons, and other shopping assistants to help visitors in faster product discovery.
- Greater Marketing Efficiency: A recent report by CoSchedule shows that 83% of marketers who relied on AI tools increased productivity, where AI saves them over 5 hours a week. Marketers use AI to automate tasks, generate content, collect insights, analyze data, and more.
Challenges of Using E-Commerce AI Tools
AI tools come with many advantages, but they also pose challenges that businesses must address, such as the following:
Best Practices for Implementing E-Commerce AI Tools
- Define Clear Goals and KPIs: Set specific, measurable goals and KPIs such as conversion rate, cart abandonment rate, repeat‑customer rate, and average order value to measure your efforts.
- Choose Scalable and Integration-Ready Solutions: Select solutions that integrate with your CRM, inventory management, and other infrastructure. Your AI solutions should be scalable to handle your growing transaction volume and customer base.
- Select a Model Agnostic Platform: Choose AI platforms that can integrate and seamlessly work with multiple models and LLMs. This is because AI tech is consistently evolving, and your AI tools should easily switch between different solutions as needed.
- Test, Measure, and Refine Regularly: Follow the test (pilot), measure (evaluate), and refine (iterate) roadmap to improve the AI’s decision-making and outcomes.
- Maintain Human Oversight in AI Decisions: AI solutions may be designed to act and learn automatically, but still, human governance, such as audit for bias or error, or ensuring transparency in AI-driven decisions, is required to ensure safe, accurate AI usage.
- Keep Customer Experience at the Core: Your goal should always be to ensure a great customer experience, not to implement unnatural or slow AI-powered solutions.
Key Features to Look For in E-Commerce AI Tools
Your AI-powered solutions should have these key features to help you drive high conversion, using AI’s personalization and automation:
Most Popular E-Commerce AI Tools
E-commerce brands can now choose from a wide variety of AI tools. We’ve reviewed the five most popular e-commerce AI tools below.
1. Tolstoy
Tolstoy is an AI-commerce platform built to help e-commerce brands boost conversions and streamline content creation. Its core offering centers on creating and publishing shoppable videos, allowing brands to embed clickable, conversion-ready videos directly on their website, PDPs, emails, and other channels—whether sourced from social media, created in-house, or generated with AI.
With Tolstoy’s AI Studio, brands can automatically generate studio-quality product images and videos at scale. Merchants can produce on-brand, polished visuals simply by selecting one of hundreds of ready-made, e-commerce-specific templates or by chatting with the AI Creative Director agent. Tolstoy’s AI Studio eliminates the need for traditional photo shoots and video editing and replaces multiple subscriptions to separate AI generation tools.
Tolstoy also includes AI Shopper, an AI-powered sales assistant that functions as Virtual Try-On and a real-time product expert. It answers customer questions, provides accurate sizing recommendations, recommends relevant products, and helps drive purchases—bringing personalized, conversational shopping directly into the on-site experience.
2. Jasper
Jasper is an AI-powered tool for retail content creation and automation that lets marketers and brands write content in their unique voice, tone, and style across multiple channels. This tool helps teams reduce writing costs and write better copy faster.
Jasper equips brands with built-in templates for use cases like product copy, blog posts, and ad copy. It allows brands to automate content calendar workflows, publish to CMS, and optimize for SEO.
3. Clerk.io
Clerk.io is an AI modular platform designed particularly for e-commerce businesses to help them make more sales. This AI tool allows businesses to add features like AI-powered search, assistance, email automation, and audience insights.
Clerk’s advanced search features enable customers to easily find their desired products. It also provides personalized recommendations based on customer data to increase upsells. Clerk also provides an AI-powered chatbot agent that offers instant customer support 24/7.
4. Octane AI
Octane AI allows brands to create AI-powered interactive quizzes to collect zero-party data from customers. This is a Shopify Plus Certified, Shopify native app that lets you build quiz flows using simple prompts. Octane’s Smart Code Builder also allows you to generate pixel-perfect HTML/CSS/JS pages matching your storefront. You can also include personalized sales copy and product recommendations on your websites powered by Octane CORE-1. You can also test different variations of your funnel and improve with the help of Octane AI.
5. Vue.ai
Vue.ai uses features such as image recognition and computer vision to help businesses create tailored workflows across industries, including food delivery, insurance, e-commerce marketplaces, health, and wealth. This AI tool is used for content detection, model training, and content moderation. Vue.ai also offers specific e-commerce features. It allows e-commerce brands to connect all their data sources, improve content, and deliver personalized experiences to customers.
How Tolstoy AI Commerce Platform Drives Personalized E-Commerce Experiences
Tolstoy’s AI Commerce Platform brings personalized shopping directly into the customer journey through AI Shopper — Tolstoy’s on-site sales assistant. AI Shopper combines virtual try-on, accurate sizing recommendations, and smart product suggestions to give every shopper a tailored, confidence-boosting experience.
This personalized assistance lives not only on the website pages but also inside Tolstoy’s video feed, where shoppers browse shoppable videos and can instantly engage with the AI chat to ask questions, get recommendations, and move toward purchase — all without leaving the content experience.
Brands are already seeing the impact. Crop Shop Boutique reported a 6% sitewide conversion uplift after enabling Tolstoy’s virtual try-on and AI sales chat, demonstrating how personalized, intelligent guidance can influence purchase decisions across the entire funnel.
Together, Tolstoy’s AI Shopper and interactive video experiences give e-commerce teams a unified, plug-and-play path to deliver personalized shopping at scale — without building custom infrastructure.
Another brand, Pantynova, converted social engagement into website sales by delivering a social-media-style shopping experience via Tolstoy’s shoppable videos, successfully bridging the gap between social interest and direct e-commerce.
Conclusion
AI-powered e-commerce tools are no longer a luxury - they’re a strategic advantage for brands aiming to scale, personalize customer experiences, and stay competitive. Whether it’s automated content creation, personalized product recommendations, or interactive shoppable videos, these solutions help brands serve their customers smarter and faster. That said, the real key lies in picking the right tool for the right role: by clearly identifying your business challenges (e.g., poor conversion, low engagement, content bottlenecks) and matching them with an AI tool that addresses them directly, you can maximize ROI while minimizing complexity.
With platforms like Tolstoy, which bundle video commerce, AI-generated content, and conversational shopping in one seamless interface, brands get a unified engine that supports discovery, engagement, and purchase. Used thoughtfully, these tools don’t just help you keep pace with 2025’s e-commerce expectations - they empower you to lead the next wave of AI-first shopping experiences.
FAQs
E-commerce brands test, monitor, and track data using AI to personalize the customer journey.
- Track and monitor customer data to predict customer behavior
- Run A/B tests to see which personalization effort leaves a high impact
- Use customers’ past data to deploy retargeting campaigns
Tolstoy merges three important tools required by most commerce businesses into one platform.
- AI Player for adding shoppable videos
- AI Studio for creating AI product videos and images
- AI Shopper for creating a personalized experience on site with a sales chatbot and virtual try-on.
Tolstoy’s shoppable videos are more engaging than static images or regular videos.
- Bring the social media experience with a swipeable feed into your store
- Allows shoppers to discover new products in an engaging way
- Provides the confidence required to purchase through social proof.
E-commerce AI tools pose some challenges, too. Brands need to be careful about mistakes such as:
- Not relying on accurate, high-quality data
- Eliminating human intervention on AI decisions entirely
- Overcomplicating interfaces with unnecessary AI personalizations
The AI commerce era is here!
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