Conversational Commerce: The Role of AI-Powered Virtual Assistants

May 6, 2025

Conversational AI is transforming e-commerce by enabling real-time, natural interactions across digital channels. AI-powered virtual assistants guide users through complex buying decisions, delivering personalised experiences that boost conversion and customer satisfaction.

Nastja Stoljarova

The Changing Face of Online Shopping

The e-commerce market has changed fundamentally in recent years. Customers are looking for increasingly seamless and interactive experiences where their questions are answered instantly and their needs are fulfilled in real time. One of the most innovative developments in this regard is the rise of conversational commerce, where the buying process is supported by AI-based virtual assistants.

Conversational commerce allows customers to make their purchases through natural conversations, whether by text or voice. With the help of artificial intelligence and generative AI (GenAI) in particular, virtual assistants can not only answer simple queries, but also influence complex purchasing decisions, make personalised recommendations and even carry out transactions.

What is Conversational Commerce?

Conversational commerce describes the practice of facilitating the sales process through conversation instead of customers having to navigate through a menu of options themselves. The aim is to make the shopping experience as simple and intuitive as possible by allowing customers to enter into a direct conversation with the company - similar to a physical shop. This usually involves the use of chatbots or virtual assistants that are powered by AI and interact with customers in natural language.

The Role of AI-Powered Virtual Assistants

AI-powered virtual assistants are at the heart of conversational commerce. They combine various technologies such as machine learning, natural language processing (NLP) and predictive analytics to optimise communication with customers. Companies should invest in conversational AI to ensure constant, personalised communication with their customers. The technology needs to be integrated into all relevant channels - from websites and apps to messaging platforms such as WhatsApp or social media - and these assistants can not only answer simple FAQ questions, but also provide customised recommendations and accompany the customer journey from start to finish. Companies such as Audi, Compo and JUMBO are already successfully demonstrating how this works. Their solution is the Frontnow Advisor, a conversational AI that enables context-aware, real-time dialogues across all digital channels.

Automated Advice and Product Recommendations

A key aspect of conversational commerce is the ability to conduct automated consultations. Instead of having to rely on rigid filters or categories, customers can receive detailed information about products via the chatbot and receive personalised recommendations based on their needs.

Real-Time Customer Service

Another advantage of AI-supported virtual assistants is the ability to provide customer service in real time. Frequently asked questions about orders, delivery times, return conditions or product availability can be answered immediately. This significantly reduces waiting times and improves the overall shopping experience.

Personalised Approach and Retargeting

Thanks to the integration of AI and GenAI, virtual assistants are able to personalise communication to a great extent. Based on a customer's previous interactions, the assistants can make customised suggestions and even apply retargeting strategies. For example, when a customer leaves the shopping basket, the assistant can send a message with a discount code or a reminder.

This personalisation not only increases the likelihood of a purchase, but also strengthens customer loyalty, as customers feel that the company understands their needs and responds accordingly.

Voice Recognition and Voice Commerce

With the increasing use of voice assistants such as Amazon Alexa, Google Assistant and Apple Siri, voice-based conversational commerce is also gaining in importance. Customers can search for products, obtain information and even finalise purchases by voice command. This makes shopping much easier, especially for customers who are travelling or otherwise busy.

Advantages of Conversational Commerce Through Virtual Assistants

24/7 Availability: An AI-supported virtual assistant is available around the clock. This means that customers can receive support at any time without having to rely on customer service opening hours.

Scalability: While human customer service agents can only handle a limited number of requests, a virtual assistant can easily manage thousands of interactions simultaneously. This means that organisations can provide excellent customer service even in times of high demand or during large sales promotions.

Cost Efficiency: By using AI-powered assistants, companies can significantly reduce their operating costs, especially in the area of customer service. Enquiries that previously had to be handled by employees can now be answered automatically without compromising the quality of service.

Improved Customer Experience: Customers appreciate it when their enquiries are answered quickly and accurately. A virtual assistant that is able to provide personalised recommendations and guide the customer through the buying process creates a smooth and satisfying experience that increases the likelihood of repeat purchases.

Challenges of Conversational Commerce

Although conversational commerce offers significant benefits, there are also some challenges that companies need to consider. One of the biggest hurdles is the technology itself. Not all virtual assistants are able to process complex or ambiguous requests correctly. If communication fails, this can lead to frustration among customers.

Another problem is data protection concerns. Customers need to be sure that their personal data collected during the interaction with the assistant is processed securely and in accordance with data protection regulations (such as the GDPR).

The Future of Conversational Commerce

The future of conversational commerce looks promising, especially with the continuous development of GenAI. Companies are increasingly investing in improving their virtual assistants to enable even more precise and humanised interactions. With advances in speech recognition, contextual analysis and machine learning, AI-powered assistants will be even more capable of anticipating customer needs and providing a seamless customer journey.

Another emerging trend is the integration of virtual assistants in augmented reality (AR) and virtual reality (VR), allowing customers to receive an even more immersive shopping experience. These developments have the potential to permanently change e-commerce in the coming years and give companies that rely on conversational commerce a significant competitive advantage.

Conclusion

Conversational commerce, supported by AI-powered virtual assistants, offers an enormous opportunity for e-commerce companies to improve their customer service, strengthen customer loyalty and increase conversion rates. Companies that invest in this technology will be able to offer their customers a personalised and frictionless shopping experience that meets the demands of modern commerce. At a time when customer experience is critical to the success of a business, conversational commerce could be the key element that sets businesses apart from their competitors. Seize the opportunities of Conversational AI now - and create loyal customer relationships across all digital touchpoints through intelligent, personalised dialogues.

Upgrade your data

Enhance your data

For visibility and growth

Wow your customers

AI-driven guidance

For smarter shopping