How Businesses Are Using AI on Their Websites in 2026

AI is no longer just a buzzword and is quickly becoming a core part of how modern websites operate. As of 2025, Shopify reports that nearly 90% of retailers are either using AI or actively exploring it within their operations. From smarter search to fully personalised user journeys, businesses are now using AI to help users find what they need faster and convert more effectively.

In this article, we break down the key ways AI is being used on websites in 2026, along with real examples and practical insights.

Chatbots & Customer Service

One of the most visible uses of AI is chatbots and they’ve now come a long way from basic “FAQ bots”.

Modern AI chatbots can:

• Answer questions instantly
• Recommend products
• Help users complete purchases
• Provide post-sale support

Some chatbots can handle a large portion of customer queries instantly, reducing pressure on support teams while improving response times.

Real examples:

• H&M uses AI chatbots to guide customers through product choices and answer questions
• L’Oréal’s “Beauty Genius” gives personalised skincare recommendations based on user input

For businesses with high volumes of enquiries, this translates to a better customer experience and a reduced manual workload - making it a strong, practical investment.

AI-Powered Search & Product Discoverability

Search functionality has evolved from simple keyword matching into something far more intelligent.

AI-powered search can:

• Understand natural language (“gift for a runner under £50”)
• Suggest relevant products instantly
• Adapt results based on behaviour
• AI can tailor results specifically to each user based on past behaviour, purchase history and preferences.

This means two users searching the same phrase may see completely different results — both tailored to their intent.

Real example:

• Clarks uses AI-powered search and recommendation technology to learn from customer behaviour and dynamically surface the most relevant products, improving both discovery and personalisation.

“It has the capability to learn from what people are browsing and make sure that surfaces to the next customer with similar behaviours… it continuously becomes more expert in its recommendations.”
— Head of Global Digital Product, Clarks

Platforms like Algolia enable this type of behaviour-driven, personalised search experience, which is becoming increasingly standard in e-commerce.

Personalisation Across the Entire User Journey

AI allows websites to adapt in real-time based on user behaviour. Instead of showing the same content to everyone, AI can:

• Change homepage content
• Recommend products
• Adjust messaging
• Trigger emails based on actions

AI systems continuously learn from user behaviour to deliver more relevant experiences over time.

Real examples:

• Amazon uses AI to power its “You may also like” recommendations
• Netflix personalises content based on viewing habits

The result: users feel understood, their needs are met and are more likely to convert.

Personalised Loyalty & Marketing

AI is also transforming how businesses retain customers.

Instead of sending generic campaigns, businesses can now:

• Deliver tailored discounts based on likelihood to convert
• Recommend repeat purchases at the right time
• Trigger personalised offers based on behaviour

Real example:

Benefit Cosmetics used AI-driven personalised email journeys to significantly increase engagement and revenue.

This shifts marketing from being intrusive to genuinely useful and relevant.

Customer Segmentation (The Engine Behind It All)

All of this personalisation relies on one key thing: data.

AI automatically segments users into groups based on:

• Behaviour
• Interests
• Purchase patterns

Instead of manually creating segments, AI continuously updates them in real time.

This enables:

• Smarter targeting
• Better recommendations
• More effective marketing

In short, users see content, products, and messaging that align with their actual behaviour — not assumptions.

AI Website Builders

When discussing AI in websites, it’s important to include AI website builders - tools designed to generate entire websites from scratch. While they offer clear advantages, there are also limitations to consider. We explore this in more detail in our article: AI Website Builders – Pros and Cons.

Final Thoughts

AI-powered websites are no longer a future concept; they’re already shaping how businesses attract, engage, and convert users.

When used effectively, AI can:

• Improve user experience
• Personalise journeys
• Reduce friction
• Increase conversions

The key is to start small, test what works, and build from there.

While AI is transforming web design and development, it still benefits from human oversight. The most effective websites combine intelligent automation with thoughtful strategy and design.

Thinking About Adding AI to Your Website?

At Digital Otter, we help businesses build modern, high-performance websites that go beyond just design - including AI-driven features where they actually make an impact.

If you’re curious about how this could work for your business, feel free to get in touch.

Overview: How AI Can Enhance Every Website Touchpoint