The AI Gold Rush

When OpenAI introduced ChatGPT in 2022, the e-commerce world jumped headfirst into the AI race. Retailers rushed to adopt Conversational AI in various forms, eager to add “something AI” to their websites — often without a clear strategy for how it would deliver real customer value.

At Karley, we took a different approach. When we launched in 2023, our mission was simple:
Figure out what actually works when applying AI to the online shopping experience.

We ran extensive A/B tests across 15 million customer interactions to explore what kind of AI experiences drive the highest engagement and real business outcomes. Here’s what we discovered.

The State of AI Chatbots in E-Commerce

What Most Retailers Are Doing

The default move for many retailers has been to install a chatbot — usually in the form of a floating icon in the bottom-right corner, ready to answer with, “How can I help?”

These bots typically serve as support agents, handling post-purchase questions. Lately, many have been rebranded as "shopping assistants," aiming to help customers during the buying journey.

But when it comes to actual performance? The results are mixed at best.

What Chatbots Do Well:

Post-Order Support Efficiency

Chatbots excel at handling common support requests, such as order tracking, saving time for both customers and support teams.

Support Ticket Deflection

We observed a 60% reduction in support volume, significantly easing the burden on CX teams.

Where Chatbots Fall Short:

Minimal Engagement

Only 0.3% of website visitors engage with chatbots — a clear signal that most customers don’t see them as relevant or helpful.

No Measurable Revenue Impact

Despite their popularity, chatbots show no lift in conversions or revenue per session.

Frustrating Customer Experience

With a CSAT of just 55%, many customers found chatbots impersonal and unhelpful — especially during the buying process.

The Experiment: “Click-to-Prompt” Buttons

In search of a more effective pre-purchase experience, we tested a new concept: “Click-to-Prompt” buttons. These clickable prompts invited customers to ask product-specific questions, which then triggered a chatbot session.

We tested two placements:

Top of Search Results

• Engagement Rate: 0.7% (2x improvement)
• Revenue per Session: Modest lift

On Product Pages

• Engagement Rate: 0.2% (slight drop)
• Conversion Rate: +30% (huge lift)

Key Insight: While engagement wasn’t significantly higher, these prompts helped uncover the right questions — the ones that directly impact buying decisions.

Defining the Real Problem: An Information Gap

Our testing surfaced an undeniable truth: shoppers need a lot of information before making a purchase — and most e-commerce sites don’t provide it accessibly.

The Information Issues:

• Key details are buried deep in pages or support docs.
• Community FAQs are often outdated or irrelevant.
• Shopper questions vary based on product, intent, and profile.
• Some questions have an outsized impact on conversion — but are never answered.

This gap between what customers need to know and what they can easily find is a massive friction point in the funnel.

The Breakthrough: Generative Q&A

With this insight, we built Karley’s Generative Q&A Engine — a new kind of AI shopping experience designed to answer pre-purchase questions with precision, speed, and relevance.

🔎 What Makes Generative Q&A Different?

✅ Embedded On-Page, Not Hidden

No more buried chatbot icons. Karley is embedded directly into the product page, where it’s clearly visible and naturally part of the shopping experience.

✅ Predictive, Not Reactive

Instead of waiting for a question, Karley proactively displays the most relevant questions for each product and shopper — dramatically improving engagement.

✅ Built to Sell, Not Just Support

Karley doesn’t just inform — it nudges, reassures, and converts. It’s a true sales assistant designed for the e-commerce funnel.

The Results: Performance That Speaks for Itself

Here’s how Karley’s Generative Q&A stacks up against traditional chatbot experiences:

Final Takeaways for E-Commerce Leaders

1. Chatbots Alone Aren’t the Answer

They’re fine for support — but if you're trying to boost revenue, they fall flat. Most shoppers ignore them.

2. The Best AI Tools Start With Customer Intent

AI that surfaces the right information at the right time changes behavior — and drives real results.

3. Embedded AI Drives Real Engagement and Sales

Karley’s Generative Q&A creates seamless, helpful, high-converting product experiences that customers love — and your bottom line will notice.

Ready to Turn Shoppers into Buyers?

Karley isn’t just another AI plugin. It’s a revenue-driving, customer-empowering experience that answers the real questions standing between your shoppers and the buy button.

👉 Visit Karley.ai to see it in action — or request a demo and discover what your store’s been missing.