The E-commerce industry is witnessing tremendous growth since its inception during the dot-com era. Therefore, companies must automate their systems, optimise operations, and build a conversion strategy to grow an E-commerce business. But, E-commerce without automation is similar to running a successful business with manual processes.
Today, being Flexible to new technology is one of the hottest tech trends in E-commerce. Undoubtedly Artificial intelligence is one such tech trend that is currently one of the fastest-growing tech trends.
However, the use of AI in E-commerce not only helps brands stay on top and improves service quality, customer satisfaction rate, and business decisions.
So stay tuned to learn more about how an E-commerce business can grow faster with the help of AI and how to reap the benefits of AI to enhance your E-commerce business conversions.
Artificial intelligence is becoming one of the most important technologies for e-commerce. It is used to solve problems, improve customer experience and grow business. But what exactly is artificial intelligence? Why should you bother?
Let’s start with a simple explanation: AI is the simulation of human intelligence processes by machines, specifically computer systems. This includes learning (acquiring rules for using information and data), reasoning (using rules to make approximate or specific conclusions), and self-correction.
In short, AI has been around for decades. However, recent advancements in computing power allow us to make computers smarter, faster and more efficient than ever. The result is that artificial intelligence is now being used in various industries, from healthcare to finance, from manufacturing to retail.
Amazon and Shopify are just two of the popular companies embracing AI in E-commerce. They use it to help customers make better purchasing decisions. Likewise, AI can be used to improve the customer experience by empowering chatbots and virtual assistants in areas of the buying process where human assistance is most useful.
That said, AI can also potentially improve our shopping experience, which is the primary goal of any E-commerce provider. Ultimately, the increased use of AI in E-commerce will significantly reduce the amount of human labour required, lowering costs for suppliers and benefiting consumers!
Artificial intelligence can also be very helpful in boosting your business by using it for the right problems. So, ‘according to Appen Surveys, business spending on AI increased by 55% between 2020 and 2021′.
But you should know that there are important differences between consumer AI applications and corporate AI tools that drive business decisions and results. So, to extract the business value that AI can deliver, business leaders need to understand the hallmarks of business AI, identify appropriate use cases, and create AI solutions and experiences that can get the job done.
As a result, modern enterprises typically implement AI in three operational areas:
In this case, the AI system analyses an agent’s historical data for task processing to model a routine decision-making process. Later, applies these analysed models to automate decisions or self-service. Examples include an HR application that provides automated responses to user questions about benefits or travel policies or an AI system that automatically sorts incoming requests or incidents into the appropriate group or job queue.
Many enterprise AI systems assist employees in their daily work, enabling them to complete easier, repetitive tasks faster and with less effort. It allows them to focus on more challenging tasks that better use their creativity and industry expertise.
For example, in data centre operations, AI systems analyse a stream of alert and error messages from servers, networks, service, and application logs to identify possible root causes. Data centre administrators can then use this information to determine appropriate corrective actions.
Some large companies have started using artificial intelligence to identify other automation cases. In this case, the algorithm can look at all historical processes related to a specific task, analyse the sequence and determine a more efficient way of working. Or it can look at all customer support records for three months, find common elements, determine the cause of the problem, and automatically send it to the engineering team working on the product’s next iteration. Now, let’s move on to the top use cases of AI in E-commerce.
Businesses can use artificial intelligence for many applications in e-commerce, such as:
Recommendations are essential for any E-commerce business, but manually creating them can be time-consuming and expensive. However, with the help of AI, your products are automatically recommended based on customer reviews and other data collected from your website. This way, you don’t have to spend hours making recommendations manually – or hiring someone to do it for you! Isn’t that great?!
One of the main benefits of AI in E-commerce is the increased ability to personalise the customer shopping experience. This allows AI-powered E-commerce platforms to continuously know customer preferences and habits, enabling them to deliver a better experience and generate more revenue. As a result, the ability to continually improve the E-commerce experience is driving the growth of online retail in general.
AI can predict what we want and need by analysing historical data. And the way it can save time and money is by making it an essential part of e-commerce. For example, Amazon uses AI to predict which products customers are likely to buy and recommend them to customers, leading to higher conversion rates and better customer experiences.
In addition to customer support chatbots, AI helps automate tasks like collecting and analysing huge amounts of data to generate reports, inventory management on the E-commerce platform, and more.
Artificial intelligence has been used in several ways to report fraudulent activity, including automatically detecting duplicate emails and other fraudulent activity on the E-commerce site. Automatically identify abnormal behaviour. The human auditor will be able to retrieve other sources of information about the transaction and take corrective action before the transaction is completed. Allows you to return/cancel fraudulent purchases.
Artificial intelligence has been used in E-commerce for years, but only recently has it become a topic of interest. Since artificial intelligence can help businesses reduce costs and increase revenue, you should also use this innovative technology for your startup or e-commerce brand.
Here are the key steps to using artificial intelligence in your e-commerce platform.
Starting with an understanding of what you want to achieve with AI in your e-commerce business will help you focus on the right areas and develop an approach to implementing the technology.
Depending on your goals, think about the results AI will bring to your platform and customers.
Think Different to help you design and build a strategic AI implementation roadmap for your eCommerce platform.
Develop an execution strategy using an MVP to iterate and test quickly. You get closer to the final product with each successive iteration. But make sure it’s fully scalable if your user base grows 10x after that.
Artificial intelligence is a broad term that refers to computer systems capable of performing tasks that typically require human intelligence. Artificial intelligence solves problems in all areas of e-commerce, from product recommendations to customer service and marketing.
Some of the unique benefits of AI in E-commerce include:
The ability of AI to automatically generate highly specific and relevant online advertisements, product recommendations and other marketing efforts has revolutionised how consumers interact with e-commerce brands, driving conversion rates and higher sales.
The power of AI helps e-commerce businesses better understand their customers, generate more personalised content, and create better product recommendations.
Artificial intelligence can enhance the customer experience by allowing them to find what they’re looking for more easily. For example, shoppers can search for “women’s black jeans” and get results that match their search criteria more closely than humans.
AI can help reduce costs by automating repetitive tasks and allowing employees to focus on more demanding tasks.
Certain types of AI (like chatbots) can help increase sales by quickly responding to customer questions or concerns about their orders. Other types of AI (like image recognition software) can help you optimise images, making them more likely to generate clicks from customers browsing your product pages.
Currently, the retail industry is also undergoing a rapid transformation. Moreover, AI technology has played a crucial role in this shift. So, retailers can provide customers with a better shopping experience while generating more revenue.
Moreover, Artificial intelligence (AI) has changed how we do many things, from driving to diagnosing diseases. It is now used to help us make decisions in our personal lives. Like, choosing a movie to watch to decide what to wear.
Artificial intelligence should be an integral part of your E-commerce business because it can revolutionise the industry. AI will as also help you propel your business to new levels. As a big result, retailers can now even predict which products their customers will buy next, improving conversion rates and customer satisfaction. So as we just learned, the possibilities AI offers to mankind are abundant; it’s us who should choose whether we extract the ore out or just stay back in the 90s. It’s your call!