According to marketing guru, Seth Godin, "Artificial intelligence does a job we weren't necessarily crazy about doing anyway, it does it quietly, and well, and then we take it for granted."
Today, we see AI walking boldly across the corridors of any company, any industry, and any business-type. And although artificial, the technology has added a personal touch to the way we shop and trade. AI in e-commerce is enhancing the entire buy-sell experience for both buyers and sellers.
AI in E-Commerce:
AI in e-commerce cannot be discussed without referring to chatbots. These chat boxes on the home page of e-commerce websites and mobile applications are AI-based computers that are programmed to communicate with customers in a personalized manner. E-commerce chatbots help buyers in looking for the right product, checking product availability, comparing multiple products, and finally, helping make the payment. Chatbots also help connect customers with the appropriate service personnel in case of any complaints or queries. Buyers can 'talk' with these machines via text, voice, and sometimes even pictures. Without employing manual labor, chatbots enable companies to add a personal touch to the relationship between AI and customers.
2. Predictive sales:
Deep learning, statistical programming and predictive analysis of massive data sets is possible with AI algorithms. Companies use these methods to capture their customers' behavior. The popular show on Netflix, House of Cards, was a result of such AI pattern learning techniques applied on datasets of the most-watched category of TV shows by a majority of the viewers. Predictive sales also help in organizing and managing the inventory of the warehouses, ensuring that the company is well stocked, especially with the products that have a higher demand.
3. Recommendation Engines:
Recommendation engines are employed by a lot of retail companies, like Amazon, to identify the target audience for their products. Based on the recent searches made by a potential customer, AI algorithms in search engines record critical details on the product being searched. Based on the outcomes of the algorithm, the search engine generates appropriate recommendations for the browser and lists them on their personal dashboard to help them find the product quickly.
4. Warehouse Automation:
An essential component of the e-retail industry, warehousing operations play a significant role in deciding the trend of sales for a company. The Beijing-based company, JD.com with Siasun Robot and Automation Co Ltd., employed robots to boost warehouse processes such as parcel sorting, packaging, and categorizing. The speed and efficiency of the sorting mechanisms and the delivery schedule for the products were improved.
While there are only a few ways in which AI has molded e-commerce today, the scalability and impact of AI in e-commerce is only expected to increase. The increase will allow identification of exceptional prospects, building better customer relations, boosting sales, and bridging the gap between personalization and privacy.