What is the role of AI in social commerce?
Industry
Tech

What is the role of AI in social commerce?

Neve Fear-Smith
Neve Fear-Smith

Did you know that AI is even changing the way we shop?

Whether it’s looking for the best price or searching for a gift idea, gen AI will be used during the upcoming holiday shopping season.

For years, e-commerce merchants have integrated AI into their sales funnels, using tools like product recommendations and chatbots to answer customer questions. However, with the rise of AI platforms like ChatGPT, consumers are turning to these tools for product information and inspiration. 

Experts predict that holiday shoppers will rely more on AI this season to find gift ideas and create shopping lists. A recent GWI report showed a 16% increase in Gen Z's use of generative AI tools, such as ChatGPT, for information searches.

Additionally…

  • 30% of consumers use AI to ask queries about products they've already purchased.
  • 29% use AI to find the best price for a product or service.
  • 25% rely on AI to help generate gift ideas.
Merging AI and Influencer Marketing

Brands can maximize the power of AI by collaborating with influencers.

While AI can help streamline product discovery and personalization, influencers bring authenticity and relatability, building trust with audiences. 

AI isn’t replacing influencers and marketers in social commerce – it’s amplifying what they can achieve together. By blending AI-driven insights with influencer creativity, brands can offer more personalized and engaging shopping experiences.

Lara Adkins, a TikTok and Instagram creator, regularly experiments with AI in her fashion content. In our recent campaign with Adobe, showcasing their Firefly product, Lara used the Generative AI tools to ‘virtually try on’ clothes to decide which outfit she should wear. 

The integration of AI-driven augmented reality experiences will allow customers to virtually try on products before buying, seamlessly connecting online and in-store shopping. This immersive technology should boost customer satisfaction and help lower return rates.

AI predictions and recommendations

AI-powered predictive analytics have transformed how brands forecast shopping trends and customer behavior. For example, our internal tech tool Composer uses Generative AI to gather insights and historic campaign data to enable us to create strategies for brands backed by data and previous success stories. The use of AI in our strategy planning enables us to save time during the research stage, leaving more time and resources for actioning our discoveries to drive growth for brands. 

AI tools can rapidly analyze millions of social media profiles to find influencers that perfectly align with a brand’s needs. By evaluating factors like audience size, engagement rate, content type, and demographics, these tools streamline the influencer selection process, boosting the likelihood of a successful collaboration.

AI algorithms analyze user browsing history, preferences, and social media activity to provide personalized product suggestions. This allows brands to further tailor their marketing campaigns, while influencers promote products more relevant to their followers, enhancing engagement and conversion rates.

Social platform features

Social media platforms offer different features that enhance consumers' shopping experiences, and AI has become a major part of enhancing the in-app shopping journey. 

  • Instagram

Instagram has transformed far beyond being a basic photo-sharing app and is now a social commerce giant. Its AI-powered 'Shop' feature tailors product recommendations to users' activity, while the built-in checkout option simplifies the purchasing process.

  • Pinterest

Pinterest is the home of shopping inspiration. The app uses AI in various ways, including the ‘Shop the Look’ feature, which enables users to purchase items directly from Pins. Additionally, Pinterest's AI algorithms recommend products based on individual user preferences and behaviors.

  • TikTok

TikTok, the favored short-form video app amongst Gen Z, has expanded into the social commerce space. Through AI, it personalizes users’ shopping journeys and enhances features like 'Shop Now' buttons and in-app stores. TikTok shop has become central to many brands’ marketing strategies. 

  • Snapchat

Shoppable AR experiences are one of Snapchat’s key USPs. The app leverages augmented reality to allow users to virtually try on products through Snapchat lenses, merging social media with online shopping. Its AI-driven visual search also enhances product discovery and purchasing.

Brands making moves

British retailer Marks & Spencer (M&S) has been making moves to appeal to a younger audience by incorporating Generative AI to streamline their product description process and speed up getting items online. 

Recently, M&S introduced a personalization tool called the ‘Style Types and Outfit Explorer’ in their app. This feature allows users to take a quiz to determine their style preferences, body shape, and sizing, before receiving AI-generated outfit recommendations. According to M&S's Online Director, Stephen Langford, the tool has been used by 450,000 customers, offering them a choice from an impressive 40 million outfit combinations. 

The M&S app is now a significant role in their digital strategy, accounting for 44% of all online orders. This aligns with the retailer's 2023 strategic report, which highlighted plans for the app to act as a personalized storefront, connecting both online and in-store shopping experiences. 

AI is constantly progressing, and with this, its role in social commerce will only grow, offering brands and consumers personalized, efficient, and creative shopping experiences. 

To learn more about the AI tools that can aid your brand in shaping the perfect campaign to push your product, reach out to us at hello@digitalvoices.com.

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