Four in five Australian e-commerce companies are now using AI – report

Celene Ignacio

16th Jan 2024

Four in five Australian e-commerce businesses are taking advantage of artificial intelligence (AI) to improve customer experience and boost profitability, according to a survey.

Salesforce, in collaboration with the Australian Retailers Association (ARA), said in its State of Commerce report that 80 per cent of e-commerce organisations in the country are already using AI, based on a double-blind survey of 2700 professionals from October 6 to November 8 last year.

Around 33 per cent of them are fully implementing AI while 47 per cent are experimenting with the technology. An additional 14 per cent are assessing if and how AI can fit into their operations.

“Commerce businesses are focused on driving efficiency and growth with new built-in and AI-powered innovations that enable a faster path to purchase and greater customer satisfaction,” said Commerce Cloud GM and SVP Michael Affronti.

“The companies that can leverage their customer data effectively to build these new connected commerce experiences will enable strong customer loyalty and profitability in the years to come.”

Meanwhile, Salesforce added that global use of digital wallet payments such as ApplePay and Google Pay surged 56 per cent in the third quarter of last year, based on its Commerce Cloud data from over 1.5 billion shoppers across 64 countries.

In addition, 49 per cent of organisations in Australia have payment capture functionality in marketing emails and 92 per cent see incremental value from customer service channels.

Salesforce said that this shows that commerce functionality is no longer limited to digital storefronts or mobile apps but is being incorporated into other pre- and postpurchase customer touch points.

“With intense competition in today’s retail sector, integrating technology and customer experience isn’t just a trend—it’s a survival strategy,” said ARA CEO Paul Zahra.

“AI innovations have the potential to streamline operations and improve customer-brand interactions across the retail value chain. As the industry shifts towards ever-increasing technological innovations, AI’s role is set to grow.”