Let’s get some clarity right off the bat. The use of Artificial Intelligence (AI) in e-commerce is no longer a front-runner, but the technology continues to transform customer experiences and businesses from year to year. Much of this has to do with the deeper diving into the customer-centric approach and the continuous development of technology.
Most Common AI Applications in E-Commerce
Let’s take a closer look at the already known uses of AI in e-commerce and how they have changed recently.
Chatbots and Assistance
Today, AI chatbot is perceived more as a must-have for a successful online business than know-how. It significantly improves customer service, helps to solve the most pressing issues quickly and without attracting additional labor resources and costs. That is, on the one hand, you get an ideal assistant who does not need to pay money, on the other, you are sure that your client will always find an answer with the help of a smart assistant.
While the level of AI is constantly increasing, its communication with people is changing. Many consumers report that a quick response, although given by a bot, is much more comfortable than waiting for an operator at a support center.
However, advances in technology allow AI, mixing with other disruptive technologies, to provide a higher level of virtual assistance comfort than ever before. AI is becoming more intuitive, “learning” to recognize voice requests and process them appropriately.
Another update for AI-based bots has essentially improved the search for what is needed by the picture. A couple of years ago, image search required additional efforts (to set additional parameters, key phrases, or tags), but now it is enough to simply place a photo and the system will offer the most suitable product from the range available.
Intelligent and Super Personalized Recommendations
Customers love to be special; they like to receive newsletters tailored to their tastes, shopping recommendations, and news about new products that take into account their interests and preferences. What they dislike is filling out the lengthy questionnaires required to collect all this information. Fortunately, there is now AI and Big Data for that.
Technologies analyze user behavior on the site, studying their journey, experience of previous purchases, reactions to offers, etc. This is how a list of preferences is drawn up and recommendations are prepared. For an e-commerce business owner, this results in increased conversions and sales, improved customer experience, and, hence, satisfaction.
The capabilities of Machine Learning have also expanded significantly. For example, some algorithms can read not only clicks on links and buttons but also screen taps, thus helping to improve both the user experience and your website or application.
Inventory and Warehouse Management
There are two nightmares for business owners: warehouses too empty and too full. The need to process a huge amount of data manually has sunk into oblivion, since AI, in combination with other technologies, makes it possible to efficiently calculate the demand for certain groups of goods, which will help to constantly maintain the required amount without creating a shortage or surplus. Moreover, thanks to additional options, you will receive reminders and notifications about the expiration of goods (depending on the entered parameters and settings), which will significantly reduce costs and cancellations.
Of course, warehouse AI-based robots are still an idea for the future, but not so far away, as the level of AI software development continues to grow every day. But today AI is being used to build a smart warehouse using the Internet of Things and Big Data.
AI-Based Data Analytics
AI is rarely used solo, as a rule, this technology is paired or placed in a whole cocktail with others, which allows using the potential of each of them to the maximum. AI-based analytical tools open up new opportunities for business owners and managers, allowing them to more accurately profile consumers, do an in-depth analysis of sales and user behavior, and make more accurate predictions.
The same analytics can be used to enhance marketing campaigns, mailings and improve interactions with regular and potential customers. And as AI is becoming more “human”, the difference between online and offline shopping experiences is significantly reducing, which sounds almost like an invitation to those consumers who were discouraged from purchasing by these differences.
The of AI adoption in e-commerce is a gradual but inevitable process. The constant development of technology allows to change the industry and improve the user experience every day. It is predicted that by 2025 there will not be a single e-commerce enterprise that has not applied at least one of the AI tools.
Please share in the comments your opinion on how you think AI is changing the industry, is it necessary to implement it at such a fast pace, or is it necessary to leave room for a human to work?
