Marketing

The Role of AI in Ecommerce Marketing: Smarter Personalisation in 2025

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The Role of AI in Ecommerce Marketing: Smarter Personalisation in 2025

Have you ever wondered how your favourite online store always seems to know what you want before you do? That’s not magic – it’s artificial intelligence at work.

In 2025, AI in marketing has evolved from a helpful tool into a strategic driver that powers smarter personalisation, sharper targeting and more intuitive shopping experiences. For e-commerce brands, mastering AI isn’t a luxury; it’s the key to staying competitive in an increasingly data-driven market.

So how exactly is AI digital marketing transforming the way online stores attract, engage and retain customers? Let’s unpack how artificial intelligence is reshaping e-commerce and what marketers can do to make the most of it.

Artificial intelligence refers to the ability of machines to analyse data, learn patterns and make decisions with minimal human input. In e-commerce, AI enables businesses to personalise experiences, predict consumer behaviour, and automate repetitive tasks.

Think of AI as your silent strategist – constantly analysing customer journeys, website interactions and purchase histories to deliver exactly what users want at the right time. From dynamic product recommendations to automated ad campaigns, AI makes marketing more precise and personal than ever before.

Did you know? According to McKinsey & Company, companies that use AI for personalisation in e-commerce see up to a 40% increase in revenue compared to competitors that don’t. That’s because AI doesn’t just automate, it anticipates. By analysing micro-signals like browsing time, click behaviour, and even cursor movement, AI can predict purchase intent before customers realise it themselves. A recent Salesforce State of Marketing report found that 84% of marketers now use AI to deliver real-time personalisation, while Accenture notes that 91% of consumers are more likely to shop with brands that recognise, remember, and provide relevant recommendations. In short, AI bridges the gap between data and emotion transforming e-commerce from transactional to truly human-centred.

References: McKinsey & Company (Personalisation Research, 2024); Salesforce State of Marketing Report (2024); Accenture Interactive Consumer Survey (2023).


Did you know that 80% of consumers are more likely to purchase from brands that offer personalised experiences?

AI has taken this concept to new heights by making real-time personalisation possible.

Instead of relying on generic email lists or static audience segments, AI for marketing enables businesses to:

  • Deliver tailored product recommendations based on browsing history
  • Predict what customers are likely to buy next
  • Personalise pricing, offers and promotions
  • Adjust website layouts dynamically to reflect user preferences

Every click, scroll and search becomes a data point that informs how your e-commerce platform responds. This level of personalisation not only increases sales but also builds long-term customer loyalty.

Example: Predictive Recommendations

When you visit a website and see “Recommended for You” or “You Might Also Like” sections, that’s AI in action. These algorithms analyse thousands of data points – including your past purchases, demographics, and similar user behaviours – to predict what you’ll find most appealing. This isn’t guesswork; it’s predictive analytics working in real time.

Have you ever chatted with a brand on Messenger, WhatsApp or a website chatbot and received instant, relevant answers? That’s another form of AI digital marketing known as conversational commerce.

AI-powered chatbots and virtual assistants can now handle complex customer queries, recommend products, and even process transactions 24/7. The result? Faster service, fewer abandoned carts, and happier customers.

For e-commerce businesses, chatbots don’t just reduce workload – they capture valuable data about customer needs, preferences and barriers to purchase. This data feeds back into marketing systems, helping brands refine messaging and targeting even further.

Running a successful ad campaign requires precision. You need to reach the right people, at the right time, with the right message. AI helps brands do exactly that.

Through automated bidding, predictive audience modelling and real-time optimisation, artificial intelligence takes the guesswork out of media buying. Platforms like Google Ads and Meta Ads already use machine learning to analyse audience behaviour and automatically adjust ad placements for better performance.

In 2025, the role of AI in marketing has expanded to include:

  • Predicting which audiences are most likely to convert
  • Dynamically generating ad creative that resonates with specific segments
  • Optimising budgets across multiple channels simultaneously
  • Measuring campaign success through automated attribution models

By harnessing AI tools, e-commerce brands can allocate budgets more efficiently and achieve higher ROI without the manual trial-and-error of traditional ad management.

Here’s a fun fact: AI doesn’t just analyse data – it also helps create content. From blog writing and product descriptions to automated SEO optimisation, AI tools are improving how brands communicate online.

Modern algorithms now understand language, tone, and context well enough to generate compelling content tailored to specific audiences. For SEO, AI can:

  • Identify high-performing keywords and trends
  • Analyse competitor content strategies
  • Optimise on-page elements automatically
  • Recommend content updates based on performance data

This level of automation allows marketers to focus on creativity and strategy while AI handles the technical execution behind the scenes.

As AI becomes more embedded in digital marketing, one of the biggest challenges for e-commerce businesses is balancing personalisation with privacy. Consumers want relevant experiences but also expect transparency in how their data is used.

That’s why responsible use of artificial intelligence in marketing involves strong data ethics and compliance with privacy regulations like the GDPR and Australia’s Privacy Act. Building trust means using data to enhance the customer experience – not exploit it.

Marketers should always communicate how AI-driven tools operate and give users control over their data preferences. This transparency builds credibility and keeps customers coming back.

AI technology is advancing quickly. Emerging innovations like generative AI, voice search optimisation and hyper-personalised video ads are already reshaping the e-commerce landscape.

Imagine an online store that automatically adjusts product displays based on your current mood or weather conditions in your area. Or AI-powered image recognition tools that allow customers to search by uploading a photo instead of typing. These are not distant possibilities – they’re happening now.

Generative AI is also transforming how brands design, test and launch products. Through advanced data modelling, businesses can predict which designs, colours or packaging will appeal most to their target audience before anything goes to production.

Is AI in marketing only for big businesses?
Not at all. Thanks to cloud-based platforms and scalable tools, small and mid-sized businesses can access AI-driven features like automation, predictive analytics and personalisation at affordable rates.

Can AI replace human marketers?
No. AI enhances marketing efficiency but lacks the creativity, empathy and strategic thinking that human marketers bring. The best results come from human-AI collaboration.

How can I start using AI for marketing in my e-commerce business?
Start small. Use AI-powered tools for analytics, chatbots, and ad optimisation. Gradually integrate advanced systems for personalisation and predictive marketing as you grow.

Is AI worth the investment?
Absolutely. AI improves decision-making, reduces wasted ad spend, and enhances customer experience – all leading to measurable increases in sales and customer retention.

In 2025, the connection between artificial intelligence and marketing is no longer futuristic – it’s fundamental. For e-commerce brands, AI isn’t just changing how marketing works; it’s redefining what customers expect.

By investing in AI-powered tools, businesses can build smarter, more personalised, and more profitable customer journeys. Whether you’re automating ads, personalising your online store, or using predictive analytics to anticipate demand, the key is to start now and evolve continuously.

At Orange Digital, we help businesses harness the full potential of AI through data-led strategy, digital marketing innovation and e-commerce optimisation. Ready to unlock the power of personalisation? Contact us today to discover how AI can take your marketing to the next level.

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