Semantic Search: AI as the Key to Personalization

This is the English translation of the article originally published in the Serbian tech magazine Internet Ogledalo, issue “AI, Cloud, and Digital Transformation”. Read the original version at Internet Ogledalo.

From keywords to conversation – AI is transforming the way we search for information.

Is search about to go from being a tool to becoming a conversation partner that understands context as well as we do?

Think about how Spotify works. You play your favorite song, and the algorithm instantly suggests what you’ll probably want to hear next – not because you asked for it, but because it understands your musical taste, genre preferences, and context.

That’s the kind of experience we now expect from every digital service. Accurate results on their own are not enough – we want recommendations that get us.

The Impact of Semantic Search on E-Commerce

The same principle is now redefining search in the world of e-commerce. Once upon a time, online search for products was pretty straightforward: you opened Google, typed in a few keywords, and browsed through the results. Nowadays – we talk.

When a shopper searches for products, they no longer want a catalog with filters; they want a dialogue: a system that understands their intent, style, and current context. Instead of ten or more links, they expect one clear, detailed, and personalized answer.

Instead of searching through search results pages, we now ask ChatGPT, Copilot, or another AI tool and expect it to understand us. This opens up a new phase in the evolution of information: search is becoming a conversation.

Consumers don’t want to search – they want to be understood. They want an online store that interprets and understands their question the same way ChatGPT would. That’s why more and more companies are turning to AI-powered search, a search that knows the subtle difference between words and meaning.

The solution SmartCat developed together with Vantage Discovery is exactly that: technology that recognizes what the user wants, not just the words they typed.

This is where AI-driven solutions, cloud infrastructure, and digital transformation converge, powering a new generation of eCommerce experiences.

From Keywords to Intent

In traditional search engines, a query like “hiking shoes” returns hundreds of pages where that exact phrase appears. But those search results are often incomplete. Why?

Because the shopper might not see results for footwear that has the same function but is labeled under a different term, or because the pages aren’t optimized for related keywords.

It could also happen that trekking shoes, which fit perfectly into the same category, don’t show up at all.

But the real problem lies deeper: traditional search doesn’t fully capture user intent.

Someone searching for hiking shoes might not be buying them for mountaineering at all: they might just want something waterproof, comfortable, or something to stabilize their joints during long walks.

This is where semantic search comes in. It focuses on the intent behind the query rather than the keywords themselves. In other words, it searches for meaning, not just terms. That is the very core of the intent-based search approach.

Instead of merely scanning for words, the system understands them, recognizing context and synonyms.

This is made possible by AI models that learn semantic relationships between concepts and convert them into vector representations of meaning, which are mathematical maps that allow search systems to “know” what you’re talking about, even when you’re not asking for it precisely.

When Search Becomes an Experience

For the project with Vantage Discovery, SmartCat helped build a solution that uses exactly this exact mechanism.

The idea is simple but effective: the system no longer searches by keywords, but by meaning, context, and intent. In practice, this means a customer can describe what they’re looking for using natural language, as if talking to another person, and the algorithm understands.

Instead of looking for identical phrases, it finds semantically related results, recognizing synonyms, contextual relationships, and even nuances in phrasing.

When a system “listens” this way, customers no longer feel like they’re filling out a form. Instead, they feel like they’re having a dialogue. The frustration with inaccurate or incomplete results disappears, and the interaction itself becomes part of the experience – intuitive, natural, and smooth.

For eCommerce companies, this also represents a new kind of competitive advantage: a customer whose intent is understood stays longer on the page, makes more frequent purchases, and develops greater trust in the brand.

Because when search becomes conversation, every interaction becomes an opportunity to turn a sale into a relationship, and search into an experience.

Technology Behind the Scenes, Customer Experience Up Front

Making this kind of search possible takes far more than a good model.

That’s where SmartCat comes in: the team that combined cloud infrastructure, AI models, and vector databases into a single functional solution.

The system allows users to upload their own data, choose the model they want (for example, OpenAI or HuggingFace), and automatically transform it into semantic vectors. These vectors are then indexed in an advanced database capable of handling billions of records.

The result: search that’s instant and precise – even for long, descriptive, or informal queries.

In just six months, the team implemented test-driven development, optimized performance, and ensured system stability even under extreme load.

They also developed specialized “bots” that simulate customer behavior and test the database in real-world conditions, allowing potential issues to be resolved long before reaching end users.

From Innovation to Business Impact

For Vantage Discovery and its clients, the results were tangible. Users could “talk” to the search bar and phrase their queries in a way that reflects their natural thought process.

This resulted in more accurate results, better customer experience, and measurable increases in conversion rates.

In e-commerce, where every second and click means revenue, semantic search creates a direct advantage. When a system understands customer intent, it finds products that truly meet their needs – not just those with matching keywords in the description.

The outcome? Higher sales and better retention. It sounds simple, but for the majority of the market, this is just the beginning of a new era.

SmartFact

The system can process billions of records in real time without sacrificing accuracy.

From Startup to Shopify: A Story of Recognized Value

The confirmation that Vantage Discovery created something came when the company was recently acquired by Shopify, the world’s largest e-commerce platform.

This acquisition clearly shows where the market is headed: personalization and intelligent search as becoming essential components of digital retail transformation.

Shopify recognized that Vantage offers exactly what modern merchants and customers want, and that’s to be understood, not just served.

It’s also proof that collaborations with SmartCat go beyond technical projects and become strategic drivers of business value.

When AI, Cloud, and Digital Transformation Work Together

This project perfectly illustrates the synergy between the three pillars of modern business:

• AI brings intelligence and personalization.
  
• Cloud provides scalability and reliability.
  
• Digital transformation gives meaning, because technology only has value when it changes how people work, decide, and communicate.

Together, Vantage Discovery and SmartCat achieved exactly that: turning search from a technical process into a strategic business layer. A system where every user interaction becomes a learning opportunity, and every search, a chance to deliver a better answer.

New Paradigm: A Search That Understands

In the digital age, speed no longer delivers the biggest value when it comes to search – understanding intent does.

Because finding data isn’t the same as finding meaning. And meaning is what users now look for –  in business, in data, and in each and every one of their digital experiences.

When search stops being a list of results and becomes a conversation between a human and a system, a new chapter in digital transformation begins.

And it’s precisely in that space, between technology and meaning, between algorithm and context, that SmartCat sees the future of business.

Digital transformation isn’t measured by how many tools an organization uses, but by the quality of the new experiences it creates.

AI-powered, intent-based search represents exactly that: technology that changes how we understand data, users, and our own operations.

Its implementation within the ecosystem of the world’s largest e-commerce platform sends a clear signal: AI is no longer an add-on, but the foundation of modern business.

Because every successful transformation begins the moment the system truly understands you.

Ready to transform your e-commerce business? Schedule a call with our team, and we will help you realize the full potential of your online retail with our workshops!