8 essential AI capabilities every business needs in 2025 (that most already have)
If your competitors have these AI capabilities as part of their digital experiences and you don’t, you’re playing catch-up.
We analyzed over 1,100 companies with our AI assessment tool and found something interesting: there’s a clear dividing line between businesses that thrive online and those that struggle. It comes down to 8 specific AI capabilities.
Here’s what matters: Companies with solid AI foundations see conversion rates that are literally double their competitors. Meanwhile, 41% of businesses are still figuring out the basics while their rivals pull further ahead.
These 8 AI capabilities show up in most company websites or digital commerce experience. If you’re missing them, you’re probably losing customers without realizing it.
Reminder: Not all AI capabilities are created equal
Before diving into the list, remember that AI isn’t just ChatGPT and image generators. AI has been quietly running behind the scenes for decades. Machine learning algorithms power recommendation engines, predictive text, and smart search results.
Generative AI gets the headlines. Agentic AI gets the venture capital. But the AI capabilities that actually move the needle for most businesses are often the unglamorous ones that have been around for years. They’re also cheaper to implement and deliver faster returns. (No, really. We have the data to support that.)
The companies obsessing over the latest AI trends while ignoring basic intelligent search and e-commerce AI capabilities are missing the bigger picture.
Here are the top 8 capabilities that most companies have deployed on their websites:
1. Relevancy Ranking (74% have this)
What it does: Your search actually understands what people want instead of just matching words.
Why it matters: Someone searches “wooden coffee table” and gets coffee tables but also some coffee makers, wooden side tables, and other not-quite-right results. Sounds obvious, but plenty of sites still mess this up.
Reality check: Bad search makes you look outdated instantly.
2. Dynamic Facets (70% deployed)
What it does: Smart filters that change based on what people are searching for.
Why it matters: Search for laptops, get filters for screen size and processing power. Search for dresses, get filters for color and occasion. The filters actually help instead of getting in the way.
The difference: Static filters annoy people. Smart ones help them find stuff faster.
3. Product Content Enrichment (63% deployed)
What it does: Products come with guides, videos, specs, reviews, Q&A sections, and everything customers need to decide.
Why it matters: Rich content builds confidence. Sparse product pages make people suspicious.
Direct impact: More information equals fewer abandoned carts.
4. Hybrid Search Technology (61% deployed)
What it does: Search that understands meaning and context, not just exact word matches.
Why it matters: Search for “cozy sweater” and get results for “comfortable knit tops” too. It thinks more like a human.
The upgrade: This is where basic search becomes intelligent search.
5. Typeahead Search Suggestions (53% have this)
What it does: Helpful suggestions pop up as people type, often with pictures and categories.
Why it matters: Most people don’t know exactly how to describe what they want. Good suggestions guide them there.
Current status: This went from “nice to have” to “expected” somewhere around 2020.
6. Personalization Systems (49% have this)
What it does: Your site remembers what customers like and adapts accordingly.
Why it matters: Generic experiences feel lazy now. People expect sites to recognize them and their preferences.
Fair warning: This requires decent data infrastructure, but the payoff justifies the effort.
7. Custom Catalog Management (52% deployed)
What it does: Different customers see different products based on location, membership level, or preferences.
Why it matters: VIP customers shouldn’t get the same view as first-time visitors. Geography matters too.
Benchmark: Amazon nailed this years ago. Everyone else is still catching up.
8. Intelligent Recommendations (48% have this)
What it does: “You might also like” suggestions that actually make sense based on real behavior patterns.
Why it matters: Good recommendations boost order values and help people discover things they didn’t know they wanted.
Key point: Relevant suggestions work. Random products you’re trying to clear from inventory don’t.
The easy win most companies miss
Only 37.5% of companies support multiple languages. This is the most overlooked essential capability (that’s actually not an AI capability), according to our 2025 AI Benchmark Report.
If you serve global markets but only offer English, you’re walking away from money. Language support is often the easiest, highest-impact improvement you can make.
How to approach AI capability implementation
Don’t try to build everything at once. Smart companies use a balanced approach:
- Pick one customer-facing improvement (better search, recommendations, chatbot) that people will notice immediately.
- Pick one behind-the-scenes upgrade (data collection, personalization infrastructure) that sets you up for future growth.
This gives you quick wins while building for what comes next.
Get 2X conversion impact on foundational AI capabilities
Essential AI capabilities have twice the impact on conversions compared to advanced AI features. Get the fundamentals right before chasing the experimental stuff.
Start simple: Pick 2-3 things from this list that you’re missing. Build those first. Then move to the fancy tech.
The companies winning right now aren’t necessarily using the most cutting-edge AI. They’re just executing the basics really well.
Want to see how you stack up? Our complete 2025 AI Benchmark Report shows exactly where you stand compared to 1,000+ companies in your industry across all 24 capabilities.