Transforming E-Commerce With AI Chatbots

Live support systems let e-commerce companies communicate with end users in writing and continue to help with customers’ product- or service-related requests. When we add an AI layer to live support, the resulting AI chatbot brings e-commerce companies many benefits. In this article, we cover those benefits.

Digibus Blog

The Rise of AI Chatbots: Differences Between RAG and Fine-Tuning and Their Use Cases

What’s the difference between RAG and fine-tuning? We explain how the two approaches work in AI chatbots, how they differ and which use cases suit each.

Read the article

Differences Between RAG and Fine-Tuning and Their Use Cases is the article where we covered the differences between the techniques AI-powered chatbots use. If you want a technical look, check it out.

You can use AI-powered e-commerce chatbots in two ways:

• Humans in the Loop (HITL)
• Humans on the Loop (HOTL)

For example, at Digibus, we’re a HITL agency. We actively use AI, but we make the final decision. Our team page has a note about this too, if you’d like to take a look. https://digibus.com.tr/ekip/

In AI-powered chat systems with a human in the loop, a person can reach a human and ask for help when needed. You’ll see these systems most often at web hosting companies. For example, when you ask a technical question, the AI system gives you a quick answer, but if you want to talk to a person, it routes you to a customer service agent.

Key Differences Between Humans in the Loop and Humans on the Loop

If we’re going to have an AI-powered customer service bot, we first need to choose one of these two models.

Key Benefits of AI-Powered Chatbots

Chatbots Can Be Trained

Isn’t it frustrating when your support team gives the same answers to the same questions every day? A repetitive process steals your time and your money. AI-powered chatbots eliminate this by doing the following:

• You can add all the products on your e-commerce site to the system so it has detailed knowledge of every product
• Whether you do B2B or B2C, you can add your product catalogs to the system and let the AI learn them with RAG
• You can integrate frequently asked questions into the system

This way, perhaps 30% of incoming requests are handled by AI chatbots, with no need for people or time. Of course, you’re renting hardware resources such as CPU and RAM for this. :)

24/7 Customer Service

Can you answer an end user asking “Where’s my package?” at 2 a.m.? With some AI models, you can. When the AI system has access to the user’s account information, it can answer this question. Even without access to the user’s account, chatbots give your customers as much information as you’ve trained them on. This keeps your pre-sales and after-sales support running 24/7.

A Personalized Shopping Experience

Chatbots don’t just work like customer service. When trained, they can guide customers and offer personalized results, acting as your sales rep. To break down the personalized shopping experience:

• Budget Range: If a customer enters their budget and the product category they want, the chatbot guides them, using all the filters the e-commerce system offers.
• Cross-Selling: It can suggest products that go with what the customer is buying and back these suggestions with consistent, persuasive copy.
• Information Based on Customer Preferences: A customer’s purchases, on-site searches and even location say a lot about them. Based on this, the chatbot provides information and recommendations with relevant segment-based guidance.

We could add more. In short, you can make it behave the way an experienced salesperson guides you when you walk into a store.

We’ve tried to briefly summarize the benefits AI-powered chatbots bring to e-commerce sites. If you have any questions about this, you can always reach the Digibus team. We can try the free version of the AI chatbot we use ourselves together. Instead of reading, you can listen to a summary of this article below.