AI Transformation in E-Commerce: What Technologies and Specialists Drive the Business

16.09.2024
Artificial intelligence is mercilessly conquering the world. It is insidiously rooted in practically every industry, including E-commerce. Unsurprisingly global tech giants are leading the innovation. However, smaller businesses try to keep up with the pace – if they don’t, they risk being left behind.
AI Transformation in E-Commerce
How companies use ML and Gen AI to solve business challenges. According to Statista
To keep up with trends, let's examine the use of artificial intelligence in e-commerce from an HR perspective. We will explore the areas and tasks in online commerce that AI can manage and, most importantly, discuss which specialists to hire and how to do it effectively.

Human, Step Aside!
What Tasks Does AI Solve in E-сommerce?

Modern businesses are committed to minimising manual labour and cutting the human resources costs whenever possible. AI becomes the primary assistant.

In e-commerce, these are the most used AI technologies:
  • NLP (Natural Language Processing;
  • Computer Vision;
  • Generative AI;
  • Traditional Machine Learning, including forecasting, recommendation systems, and customer data analysis.

With these tools, businesses are tackling a wide range of tasks, from routine operations to cutting-edge solutions for the future.
AI technologies in e-commerce
AI Technologies in E-commerce According to Lucky Hunter
Key Directions:
  • Sales forecasting and supply chain optimisation
    It uses historical data, market trends, and demand models. It allows online shops to avoid excess costs and inventory while ensuring that demand is met.
  • Delivery optimisation
    By considering all route parameters using AI, delivery costs can be reduced by 30%. Additional benefits include improved customer service and a smaller carbon footprint.
    Price tuning. With the help of ML, it's possible to build a dynamic pricing system when prices are updated in real-time in terms of an ever-evolving market.
  • Price tuning
    With the help of ML, it's possible to build a dynamic pricing system when prices are updated in real-time in terms of an ever-evolving market.
  • Personalisation and hyper-personalisation of recommendations
    Recommendation systems based on a history of previous purchases aren't a novelty in E-comm. However, the 2024 trend takes this system to a new level. Hyper-personalisation allows to consider more individual customer data: preferred filters (colour, size), browsing history, and real-time behaviour.
AI Transformation in E-Commerce: What do e-commerce customers think about AI-driven personalized recommendations
What Do E-commerce Customers Think About AI-driven Personalized Recommendations. According to Scispace
  • Maximum marketing personalisation
    Powered by AI, advertising campaigns hit the customer's preferences on target. For businesses, this means high customer retention and increased return on investment.
  • Anti-Fraud protection
    One of the hottest trends in e-commerce is the automated detection of fraudulent transactions and the protection of customer data.
  • Visual search
    An area of computer vision that allows for searching not through a text query but by image. It's useful for finding similar products.
  • Augmented reality
    Solutions that still seem a bit futuristic. However, even today, customers can try on virtual clothing, accessories, and makeup, as well as see how new furniture will look in their current interior.
  • Virtual assistants
    Modern chatbots and voice assistants can handle the main requests of e-commerce customers in real-time. It increases customer loyalty and minimises costs for "human" support.
  • Content generation
    Generative AI is at the peak of popularity, and many marketplaces have successfully implemented the creation of product descriptions and backgrounds using artificial intelligence.
AI Technologies in E-Commerce
Generative Al in E-Commerce Market Share, By Region, 2023. According to Precedence Research
  • Warehouse process automation
    Computer vision technologies are already actively used in the warehouses of e-commerce giants to recognise, sort, and package goods. It saves manual labour and increases work speed while reducing the number of errors.
  • Brand and reputation management
    AI can be successfully used to monitor reviews of products and brands, as well as analyse them and even process them. In other words, to offload all the routine work, leaving more complex creative tasks to marketers.

Human, You are Still Needed!
Which AI Specialists Are in Demand in E-commerce

Just as English weavers were mass unemployed in the 19th century due to the advent of weaving machines, many modern professions are under threat from the rapid development of artificial intelligence. Society is seriously concerned about this, and perhaps not without reason.
AI Technologies in E-Commerce: What do people think about how AI will affect their work
What Do People Think About How AI Will Affect Their Work. According to HAI
However, AI specialists focused on development, configuration, and implementation can rest easy; they are more in demand than ever. And this trend is steadily growing!

According to Lucky Hunter analytics, the most in-demand AI specialists in e-commerce are:
  • Data Scientist (R&D)
    Role: Analyse big data, conduct research, generate hypotheses, and create predictive models to provide actionable insights and recommendations for business development.
    Example task: Forecasting demand models and interpreting data.
    Tech stack: ML, Python, Pandas, SQL, R.
  • ML Engineer
    Role: Develop, configure, and deploy machine learning models in production.
    Example task: Build and integrate a recommendation system into an e-commerce platform.
    Tech stack: ML, Python, PyTorch, Scikit-learn, TensorFlow, Docker, Kubernetes.
  • NLP Developer
    Role: Handle natural language processing and create product solutions based on NLP.
    Example task: Develop and fine-tune a chatbot for customer support.
    Tech stack: Python, BERT, GPT, SpaCy, NLTK.
  • Computer Vision Engineer
    Role: Develop systems for recognising and analysing images and videos.
    Example task: Create a visual search tool for uploaded photos.
    Tech stack: Python, OpenCV, TensorFlow, Keras.
  • Generative AI Developer
    Role: Develop and implement neural networks to generate new content in various formats (text, audio, video).
    Example task: Create a neural network to generate product descriptions automatically.
    Tech stack: Python, TensorFlow, PyTorch, GAN, Transformers, VAE.
  • Data Analytic
    Role: Analyse large datasets and create reports and visualisations to understand key business metrics.
    Example task: Develop an analytics tool to track customer behaviour on an e-commerce platform.
    Tech stack: SQL, Python, Power BI, Tableau.
  • ML Ops Engineer
    Role: Implement and maintain ML models in production, optimising infrastructure and ensuring system stability.
    Example task: Set up a cloud solution for a product recommendation system.
    Tech stack: Docker, Kubernetes, AWS, GCP.
  • Marketing Automation Engineer
    Role: Use ML algorithms to automate marketing campaigns and personalise offers.
    Example task: Develop an algorithm for automating personalised email campaigns.
    Tech stack: Marketing platforms with AI integration, Python, SQL.
  • AI Security Engineer
    Role: Apply AI technologies to prevent cybersecurity threats, analyse, and ensure data security.
    Example task: Create and maintain a system to protect customer data privacy.
    Tech stack: Python, Splunk, ELK Stack, Wireshark, Anomaly Detection Models, OpenSSL.
AI Transformation in E-Commerce: Professions
Which AI Specialists Are in Demand in E-commerce. According to Lucky Hunter

Recruitment Specifics

Let’s move on to the core question: how to source and hire AI specialists indispensable for any dynamically developing e-commerce project.

Market Challenges

Even large companies often encounter difficulties when recruiting IT talent. This task is even more complicated for small businesses or budding startups. Typically, neither have in-house recruiters with a sufficiently high level of expertise. And expertise is essential here!

What challenges do recruiters face when searching for AI specialists for e-commerce:
  • The demand outpaces the supply
    The AI industry is growing at the speed of light, and talent training is struggling to keep up. While there's been a surge in AI graduates in recent years, most lack the real-world experience employers seek.
  • Hiring merry-go-round
    In local e-commerce markets, there aren't that many big players. So, more often than not, you have to poach professionals with the right experience from competitors. Then your competitors poach someone from you, and round and round it goes. Naturally, each new hire comes with improved conditions for the specialist, and companies keep investing more and more.
AI Technologies in E-Commerce: ТОP e-comm by market cup
TOP E-comm By Market Cup. According to CompaniesMarketCup
  • The battle for top talent
    The previous points lead to a situation where the most skilled specialists are in high demand and are already engaged with other companies. Companies have to go to great lengths to lure such a professional away. Most IT professionals aren’t eager to switch jobs without a compelling offer, so convincing them to join a new company usually involves presenting a very enticing opportunity.
  • 'I don't know what I am looking for'
    This is a common issue, especially relevant for startups and small projects. Often, even C-level managers can't precisely define the profile of the specialist they need, let alone an in-house recruiter. They might want to integrate AI into their processes but struggle to determine the specific type of developer and required tech stack. It requires a deep understanding of the IT HR market.
  • Irrelevant skills
    Most companies want to hire an IT specialist who has already successfully implemented what they need, ideally in the same field and, even better, in a similar project. Statistically, such professionals are scarce, and attracting them can be difficult. Other candidates may lack sufficient expertise in the required area, often having only theoretical knowledge and fragmented experience.
  • Assessing soft skills
    The days of antisocial programmers who code better than they communicate are over. Modern companies are paying more and more attention to soft skills. Today, even the deepest techies are expected to have product thinking and the ability to fit seamlessly into a team. These skills vary depending on the company's size and stage. IT giants want candidates with a corporate mindset who can smoothly integrate into current processes and communicate effectively. Startups, on the other hand, prioritise "fire in the eyes", which is frequently listed as an essential requirement in their job postings.
For over 7 years, Lucky Hunter has been connecting top IT talents with global companies and startups

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Secrets to Successful Hiring

At first glance, it might seem like these hiring challenges are incredibly daunting, and finding the right AI professional is nothing short of a miracle. We'll be the first to admit that it is a tough nut to crack. But it's not mission impossible!

Our colleagues – Maria Reyimbaeva, Head of IT Recruitment, and Valeria Soboleva, Lead IT Recruiter – are sharing their hacks on how they successfully hire AI specialists in e-commerce:
  • Expanding the search geography
    In recent years, remote work has taken the world by storm, blurring the boundaries between regions and countries. So, when you're struggling to hire those rare sought-after IT specialists, the first thing to consider is looking beyond your local market. Recruiting from developing countries can be particularly effective: you can find IT talent willing to work remotely for very reasonable rates, and if relocation is necessary, there are bound to be specialists eager to move from regions with struggling economies.
  • Knowing how to approach top specialists
    In poaching developers from competitor companies, the main goal is to figure out what might interest them and then skillfully push those buttons. For some developers, offering higher compensation does the trick (we're talking not just salary but also stock options, relocation packages, and so on). However, the real stars are usually attracted by exciting tasks and opportunities for professional development. Accurately identifying what is most important to the candidate is crucial.
  • Flexible collaboration with hiring managers
    The recruiting process is always a partnership where not only the recruiter and candidates play the main roles but also the employer. Maximum results can only be achieved when hiring managers actively adjust their requirements and upgrade conditions if the market demands it.
  • Continuous growth of the recruiter's expertise
    Candidates often attribute non-existent skills to themselves to land their desired position. And recent graduates from numerous IT courses may falsely inflate their years of experience. Both categories sometimes successfully pass interviews and even get hired for positions for which their qualifications are insufficient. In general, the world of AI technologies is undergoing an incredible amount of change: yesterday, certain frameworks and tools were popular, and today they are almost forgotten, and completely different ones are being actively used. Therefore, an IT recruiter has to constantly grow their expertise and stay on top of the latest trends.
  • Psychology as a main tool
    It is useful at every stage of recruitment, from reading between the lines of resumes to understanding a candidate’s motivation and assessing their soft skills. This psychological approach is especially crucial in cold outreach when you're trying to hunt specialists who aren't even thinking about switching jobs.

Conclusion

At Lucky Hunter, we have no doubt (and global experts agree!) that the future of E-commerce lies in innovative AI solutions capable of fully automating current processes and skyrocketing user metrics. Promptly adapting to new trends and technologies is key to success in this dynamic industry. And, of course, attracting talented IT professionals who will implement and refine these technologies is essential.

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Olga Makhina
Content Manager in Lucky Hunter
Alexandra Godunova
Content Manager in Lucky Hunter
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