What Is Generative Artificial Intelligence?

Generative AI is a type of artificial intelligence that creates new content, from text and images to video and code.

Tools like ChatGPT, which can write articles, or Midjourney, which generates images from text prompts, are powered by this technology.

Traditional AI has been used in ecommerce for years. It works by analyzing structured data and following set rules.

Examples of traditional AI use include:

• Predicting customer demand.
• Recommending products based on past purchases.
• Dynamic pricing.
• Segmenting customers.

Generative AI takes this further by producing original outputs. Together, they are a powerful combination

For example, traditional AI can identify what a customer is likely to buy, while generative AI can create a personalized email or product image that persuades them.

In other words, nearly the entire process can be performed by a computer.

AI gives ecommerce businesses a competitive advantage

In ecommerce, generative AI algorithms help tackle long-standing challenges like content creation, customer support, and targeted marketing campaigns.

These areas have often been time-intensive and expensive, but AI makes them faster and more affordable, giving smaller businesses the ability to compete with larger brands.

For example, a study found that at one company, generative AI assistance helped support agents resolve issues 14% faster, while reducing escalations to managers by 25%.

For subscription businesses, the impact goes further. These businesses need to create content at an even greater rate to keep customers engaged and stop them from churning.

Generative AI makes this level of ongoing customer engagement manageable, even for lean teams, which is why it is especially powerful in the subscription model.

The benefits it can offer companies in the sector include:

• Boost productivity: Automate work such as writing product descriptions or blog content.
• Enhanced personalization: Deliver tailored campaigns and recommendations for individual customers.
• Improved operational efficiency: Use smart chatbots to resolve ecommerce customer service queries.
• More innovation: Generate new product ideas by analyzing trends and customer feedback.

Generative AI is no longer experimental. It is already reshaping how ecommerce businesses of all sizes attract and retain customers.

How Does Generative AI Work?

Generative AI is built on a type of machine learning model known as a large language model (LLM) or a generative adversarial network (GAN).

LLMs are best for text-based tasks, while GANs are better suited for visual outputs.

These models are trained on massive amounts of data, such as text, images, or video.

The training process works by identifying patterns in the data and learning how to predict what should come next.

For example, an LLM trained on billions of sentences learns the probability of one word following another. When you give it a prompt, it uses these probabilities to generate new text that reads naturally.

Image models follow a similar process, but instead of predicting words, they predict pixels or patterns in an image.

Traditional AI, on the other hand, was programmed to perform specific, rule-based tasks like classifying emails as spam or not spam.

9 Ways Generative AI Can be Applied to Ecommerce

The real value of generative AI comes from how it can be put to work in everyday business.

From creating content to predicting churn, it is already transforming the way ecommerce brands attract, convert, and retain customers. Below are some of the most effective applications.

1. Create content

Content drives ecommerce. Every product page, marketing email, and social media post depends on fresh, engaging material.

Generative AI tools like ChatGPT can automate large parts of this work, including:

Product descriptions: Instead of writing hundreds of descriptions manually, tools like Jasper.ai  can create SEO-friendly copy at scale.

Images and video: Platforms such as Stylized.ai or Runway can generate product photos, lifestyle shots, or short promotional clips from simple prompts.

Here is an example of a product photo generated with Gemini:

Blog and email content: AI can draft articles, newsletters, and campaigns tailored to customer interests.

Using generative AI for content saves time, but more importantly, it supports experimentation. Businesses can test multiple variations of content and see what resonates, something that would be costly and slow with a traditional workflow.

One company that has seen strong results from using AI to write content is New Jersey–based fashion brand Amarra.

It uses ChatGPT to generate product descriptions and supporting content, which the team then refines for brand voice.

This approach has reduced their content creation time by around 60% while maintaining quality.

2. Build your website

For many entrepreneurs, building an ecommerce site is one of the most time-consuming and expensive parts of getting started.

Traditional options include drag-and-drop builders that require hours of tweaking, or hiring a developer, which can cost thousands of dollars.

Generative AI changes this process. Instead of manually designing every page, AI can generate layouts, suggest branding elements, and even create copy and product imagery in minutes. This makes it possible to go from idea to launch far faster than before.

Subbly is already bringing this technology to subscription-first businesses. Our AI website builder is designed to generate a complete, subscription-ready store in just a few steps.  

That means entrepreneurs can skip the technical setup and focus on what matters most: growing their customer base.

For subscription companies, the advantages are clear. A faster launch means you can start testing your offer, gathering feedback, and building recurring revenue sooner.

Personalize marketing campaigns

Personalization has always been key in ecommerce, and AI has long been used to understand customer preferences at scale. Generative AI takes that a step further by turning those insights into personalized content.

Instead of sending the same campaign to your entire list, generative AI can produce tailored subject lines, product highlights, and even visuals for different customer groups.

Tools like Jasper or Copy.ai can generate multiple email versions in minutes, each designed to resonate with a specific audience.

Fashion and footwear brand Allbirds uses this approach to automate repurchase emails that feel genuinely personalized. Their AI-generated content reflects each customer’s past purchases and preferences, making the marketing message more relevant.

For example, the image below was included in a customer email and reflects their past behavior.

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This approach matters. A McKinsey study found that 71% of consumers expect personalized interactions, and businesses that get it right drive 40% more revenue from those efforts.

For subscription businesses, personalization is especially powerful.

A customer who receives a renewal reminder paired with a relevant product recommendation based on their purchase history is far more likely to stay engaged than one who receives a generic message.

Even better, you don’t need a large marketing team to handle this. With the right tools, just one person can do it on their own.

4. Sharpen search

Traditional search relies on keywords and filters, but generative AI makes search far more intuitive and flexible.

Here are some examples:

Intent-led search: Instead of typing exact product names, customers can ask natural questions like “I need a gift for a coffee lover under $50.” Generative AI understands the intent and returns curated options.

Visual search: Shoppers can upload a photo or screenshot of a product they like, and AI finds similar items in your catalog. This shortens the path from interest to purchase.

Virtual try-on: Generative AI can create realistic previews of how clothing, makeup, or accessories look on a customer, improving confidence before buying.

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Big retailers such as Amazon and Shopify are already experimenting with AI-powered search to improve discovery.

For smaller and subscription-based businesses, this technology offers a way to compete by making the browsing process faster, easier, and more enjoyable.

5. Improve upselling and cross-selling

Upselling and cross-selling are proven ways to increase average order value; generative AI can make these suggestions more relevant and timely.

By analyzing what a customer is vie

wing or has bought in the past, AI can create tailored recommendations and even generate the copy that sells them.

For instance, if someone subscribes to a monthly tea box, generative AI could suggest a premium add-on like a limited-edition blend, paired with a personalized message explaining why it matches their taste profile.

This could either be done during the checkout process or as a follow-up email.

It also works for cross-selling. A customer browsing a skincare product could be shown a complementary item, such as a moisturizer to pair with their cleanser, with AI-written copy highlighting the benefits of using them together.

The key advantage is scale. Instead of manually designing bundles or writing upsell prompts, businesses can let generative AI identify products and write personalized offers, making every recommendation feel crafted for the customer.

Luxury fashion brands already use generative AI this way.

For example, luxury goods conglomerate Kering has been trialing ‘Madeline,’ a conversational personal shopper built on ChatGPT.

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Shoppers input natural prompts, like “I’m looking for a dress to wear in Rome in May” and Madeline suggests items along with contextual insights such as “Italy’s fashion capital prefers light, airy fabrics… this dress strikes that balance.”

It effectively upsells through personalized recommendations that read like advice from a stylist.

6. Quickly analyze customer data

Customer data is one of the most valuable assets in ecommerce, but making sense of it is a challenge.

Traditional AI is good at identifying patterns in large datasets, such as spotting seasonal buying habits or defining customer segments.

Generative AI builds on this by turning those insights into useful outputs that are easier to understand and act on.

For example, rather than presenting raw charts or reports, generative AI can summarize findings in plain language: “Your highest-value subscribers are most likely to churn in the fourth month. Offering a discount or bonus in the third month could reduce cancellations.”

Some tools can even generate visuals and dashboards on demand, tailored to specific questions a business owner asks.

This ability is especially useful for smaller ecommerce and subscription businesses that may not have dedicated data teams.

Generative AI can act like an analyst on call, surfacing key insights and recommendations without requiring advanced technical skills.

7. Predict churn and launch proactive retention strategies

Churn is one of the biggest challenges for subscription businesses. Customers may cancel due to losing interest, finding the service too expensive, or feeling they no longer receive value.

According to our research, the median churn rate across all merchants, verticals, and models is 7.44%.

Spotting these risks early is difficult, and designing the right response usually takes time and resources.

Generative AI helps by turning churn and retention data into personalized strategies that you can run automatically.

For example, if data indicates a customer is likely to cancel in the next month, AI can generate a tailored response such as:

• A loyalty reward, like bonus points or early access to a new product.
• A personalized discount or upgrade offer.
• A reminder email that highlights the benefits they’ve enjoyed so far.

Businesses can use generative AI to create a library of offers and messages, then let it automatically match them to the right customer at the right time.

This ensures retention strategies feel personal and timely, which means customers are far more likely to continue subscribing. It also significantly reduces your marketing team’s workload, which is great news if you are the marketing team!

A good example of these tools is Subbly’s own Churn Suite. Its features include:

• Automated campaigns: When the system flags a subscriber at risk, it can automatically trigger tailored offers, such as early access, bonus perks, or specially styled messages.
• Cancellation insights: Subbly provides churn analytics and lets merchants set up cancellation flows or offers that deploy automatically when a cancellation is attempted.

This approach turns what might take days or weeks to plan into an immediate, data-driven response.

Subbly merchants benefit from early intervention and content generated automatically, reducing workload and improving retention without extra manual effort.

8. Improved customer support

Speed and empathy are critical to customer support. Get it right and you can turn a negative experience around and actually improve customer loyalty.

Generative AI is transforming this aspect of ecommerce by making support faster, more personal, and available around the clock.

Here are some of the ways it is doing this:

Chatbots and automation agents

Instead of relying on scripted responses, generative AI chatbots can understand complex questions and reply in natural, human-like language.

They can answer queries about orders, product details, or account settings instantly, and escalate to a human agent when needed.

This reduces wait times and frees up support staff for more complicated cases. Faster responses and more natural conversations directly improve overall customer satisfaction, which is critical for long-term loyalty.

Sentiment analysis and response generation

Sentiment analysis has been used for years to classify messages as positive or negative.

Generative AI takes it further by drafting tailored replies that match the customer’s emotional state.

For example, AI customer service agent support software Loris integrates with platforms like Zendesk and Intercom to analyze the tone of a customer’s message in real time.

If the system detects frustration, it can suggest empathetic responses that customer support agents can use, such as “I understand how frustrating this must be. Let me help resolve it quickly.”

If the sentiment is positive, it can generate replies that reinforce loyalty, like “We’re so glad you’re enjoying your subscription. Here’s a sneak peek at what’s coming next.” This helps agents resolve issues faster while keeping responses consistent and on-brand.

Automated alerts and recovery

Generative AI solutions can create proactive messages to keep customers informed and engaged.

For instance, if your fulfillment management system detects a delivery delay, it can automatically write and send a regular email to keep them informed and offer a small incentive, such as a money-off voucher as recompense.

It can also generate recovery emails for abandoned carts, customizing the message to reflect the items left behind and the customer’s browsing history.

According to ArtSmart.ai’s 2024 research, 64% of abandoned cart emails now use AI for tailored recommendations, resulting in 15% higher recovery rates compared to traditional, non-AI approaches.

Multilingual support

Language barriers are a major challenge for global ecommerce. Generative AI can translate customer queries in real time and generate fluent, natural responses in multiple languages.

This allows smaller businesses to support international customers without needing large, multilingual teams.

Knowledge base generation

Support teams often struggle to keep FAQs and help articles up to date.

Generative AI can draft articles and troubleshooting guides automatically by analyzing patterns in customer queries.

This ensures that common issues are documented quickly, reducing pressure on support staff and allowing the company to respond rapidly to emerging issues.

Voice support

Generative AI is also being integrated into voice-based customer service interactions. By combining speech recognition with natural language generation, businesses can offer phone-based support that feels conversational. This creates a smoother experience for customers who prefer speaking to typing.

9. Reputation monitoring

Online reputation has a direct impact on ecommerce growth. Negative reviews or viral complaints can quickly damage customer trust if they are not addressed promptly.

The challenge for many businesses is the sheer volume of customer feedback across platforms, from social media to Trustpilot and app store reviews.

Generative AI helps by connecting to review monitoring or social listening tools and turning raw feedback into clear insights and actionable responses.

For example, a monitoring tool might flag a sudden spike in negative reviews about shipping delays.

Generative AI can then:

• Generate an alert summarizing the issue in plain language for your team.
• Write replies to reviews based on what the customer wrote, ensuring a consistent and empathetic tone.
• Create a management report highlighting recurring issues and suggested fixes.

This works best when generative AI is integrated with platforms such as Sprinklr, Brandwatch, or even native review feeds from Shopify and Trustpilot.

These platforms collect and analyze the feedback, while generative AI creates the responses and reports that save your team time.

A good example of how effective this is Bloom Intelligence, a customer data and marketing automation platform that works with restaurants, hospitality, and retail.

Since implementing AI-generated responses to reviews, it has saved users up to 15–20 hours per week, while ensuring consistent, on-brand replies.

For subscription businesses, reputation management is critical. Customers are committing to a recurring relationship, so one bad experience can lead not just to a single lost sale but to long-term churn.

With generative AI handling first-draft responses and summarizing market trends, businesses can act faster to protect their brand and keep customers engaged.