From Dashboards to Decisions: AI Use Cases in Modern Commerce
Ashish Kasama

From Dashboards to Decisions: AI Use Cases in Modern Commerce

In the previous articles, we discussed why commerce analytics breaks at scale, why Lakehouse architectures are becoming the standard, and how a modern commerce intelligence architecture is structured.

The next logical step is the most important one:

What does this architecture actually enable for commerce businesses?

The answer is not better dashboards.
It is AI-powered decisions embedded directly into commerce operations.

This article explores the most impactful AI use cases in modern commerce—and why they require a unified data and AI foundation.

Why AI Matters Differently in Commerce

Commerce is not a back-office function.
It is a real-time, revenue-generating system.

Decisions related to pricing, inventory, promotions, and fulfillment have:

  • Immediate revenue impact

  • Direct margin consequences

  • Customer experience implications

AI in commerce is valuable only when it:

  • Operates on live transactional data

  • Responds to volatility

  • Influences decisions before outcomes are locked in

This is why AI cannot be bolted on after analytics.
It must be built into the core commerce data platform.

1. Demand Forecasting: Anticipating What Comes Next

The Challenge

Commerce demand is volatile:

  • Promotions distort historical trends

  • Weather and events create sudden spikes

  • Omnichannel demand shifts continuously

Traditional forecasting methods rely on static historical averages and manual overrides.

The AI Approach

AI models learn from:

  • Transaction history

  • Promotion patterns

  • Channel behavior

  • External demand signals

They generate short- and medium-term forecasts at granular levels (SKU, channel, region).

Business Impact

  • Fewer stock-outs

  • Lower overstock

  • Better inventory planning

  • Higher service levels

Demand forecasting becomes a continuous intelligence process, not a monthly exercise.

2. Inventory Optimization: Balancing Availability and Margin

The Challenge

Commerce organizations constantly balance:

  • Availability vs working capital

  • Speed vs cost

  • Growth vs waste

Inventory decisions are often rule-based and reactive.

The AI Approach

AI models combine:

  • Forecasted demand

  • Lead times

  • Service-level targets

  • Fulfillment constraints

They recommend optimal reorder quantities and timing across channels.

Business Impact

  • Improved inventory turns

  • Reduced carrying costs

  • Higher fulfillment reliability

  • Better margin control

Inventory optimization becomes proactive instead of reactive.

3. Dynamic Pricing & Promotion Optimization

The Challenge

Pricing and promotions are often based on:

  • Historical performance

  • Intuition

  • Broad discount rules

This leads to margin erosion and unpredictable results.

The AI Approach

AI models analyze:

  • Price elasticity

  • Promotion lift vs cannibalization

  • Inventory pressure

  • Competitive and demand signals

They recommend:

  • Optimal price points

  • Discount depth and timing

  • Channel-specific strategies

Business Impact

  • Higher promotional ROI

  • Better margin preservation

  • Smarter campaign planning

Pricing evolves from static rules to adaptive intelligence.

4. Personalization: From Segments to Individuals

The Challenge

Most commerce personalization still relies on:

  • Static segments

  • Basic recommendation rules

  • Channel-specific logic

This limits relevance and scale.

The AI Approach

AI models learn from:

  • Customer behavior across channels

  • Transaction history

  • Contextual signals (time, intent, device)

They generate real-time recommendations and offers.

Business Impact

  • Higher conversion rates

  • Increased average order value

  • Improved customer loyalty

Personalization becomes continuous and adaptive, not rule-bound.

5. Fraud, Returns, and Abuse Detection

The Challenge

Commerce fraud and returns abuse:

  • Erode margins

  • Create operational friction

  • Damage customer trust

Rule-based systems struggle to adapt to evolving patterns.

The AI Approach

AI models detect anomalies by learning normal vs abnormal behavior across:

  • Orders

  • Payments

  • Returns

  • Customer actions

They flag high-risk activity early.

Business Impact

  • Reduced fraud losses

  • Lower returns abuse

  • Faster intervention

  • Better risk control

Risk management becomes predictive rather than reactive.

Why These Use Cases Require a Unified Platform

All these AI use cases share a common requirement:

  • Access to reliable, up-to-date transactional data

  • Seamless integration with analytics

  • Continuous feedback loops

Fragmented architectures slow down model development, deployment, and learning.

Unified Lakehouse-based platforms enable:

  • Faster experimentation

  • Production-grade AI

  • Lower operational complexity

  • Consistent governance

This is what allows AI to move from experimentation into everyday commerce operations.

From AI Projects to AI-Driven Commerce

The real transformation happens when AI is no longer treated as a set of isolated projects.

Instead, it becomes:

  • Embedded into pricing systems

  • Integrated with inventory workflows

  • Connected to marketing execution

  • Trusted by business teams

This is the shift from analytics platforms to commerce decision platforms.

Final Thoughts

Modern commerce is driven by speed, scale, and constant change.

AI is not optional—but it only delivers value when built on the right foundation.

Unified data and AI architectures allow commerce organizations to:

  • Respond faster to market signals

  • Optimize decisions continuously

  • Turn intelligence into measurable business outcomes

AI does not replace commerce strategy.
It amplifies it—when built on the right platform.