Artificial Intelligence or more popularly known as the AI, is intelligence exhibited by machines. The growth of AI is vigorous especially in the recent years and it’s being applied in many industries from creating personalized shopping experiences to offering virtual buying assistants. In the aspect of e-commerce businesses, AI is improving the online shopping experience for consumers and retailers.
According to Business Insider, 85 percent of customer interactions will be handled without a human by 2020. By then, all phone calls, emails and text messages will be answered by an automated system that is taught to replicate human functions. The first thing that AI changes in e-commerce is the creation of personalised experience for shoppers. Shoppers will be able to easily find the best price for an item and communicate with chatbots for quick customer service. Everything the customer wants to know about the item will be answered by the chatbots.
What is so powerful is that AI can analyse vast data sets way more efficiently than a human being. For retailers, AI is able to help them analysing consumer data to predict future buying patterns based on past purchase history and demographics. With all the data analysis, retailers are well informed as to what the customer actually needs and therefore, more successful with their sales and also aid in the creation of autonomous replenishing systems. Apart from that, AI technologies help retailers to save money and time on customer service by utilizing chatbots.
Facial recognition is another AI technology that is employed by retailers to retarget potential customers. This system captures the “dwell time” of customers who linger on a certain product for a notable length of time. The information obtained will be stored for use on the customer’s next visit or next online shopping.
A number of companies have already employed AI in their e-commerce processes today. For instance, Netflix uses AI to provide personalized recommendations to subscribers based on their previous streaming habits. Another company, Pandora, which is best-known for its music streaming service in Australia, New Zealand and the U.S., employed AI to recommend songs that would otherwise go unnoticed but that people inherently love.
Over the next few years, we will likely see more and more retailers incorporate AI into their e-commerce practices to bring changes to the way they deal with their customers, getting quicker access to information and harnessing their employees’ talent for better use.