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Top 5 Ways AI Will Affect the Ecommerce Industry

Artificial Intelligence is an emerging technology and AI one of the most interesting technology which is contentiously growing day by day. AI can do those things which can not be expected without human interfere and this has become possible just because of thousands of technological advancements. Let’s tell you again that AI can do those things which are unexpected and we used to think that several things can not happen in future but AI can do it without a human help. But, some intellectuals like Elon Musk and others see AI as a big danger to the human kind, but these predictions are decades in the future.

But for now, Artificial Intelligence Development is helping to improve the business processes in several industries, and most effected industry is E commerce industry. Let’s take a look on couple of ways in which Artificial Intelligence is going to affect the eCommerce industry.

Seamless Buyer Experience

The word artificial seems to mean something which is not human, fake or robotic, yet, actually, Artificial Intelligence provides the sales and marketing team with a way to deliver an enhanced personalized and seamless experience to their buyers.

In comparison to humans, Artificial Intelligence analyze the big data more effectively. This clearly shows that artificial intelligence has an exceptional ability to identify clusters and patterns in the sets of big data, just like similarities between buyers, buyers’ purchase history, credit card information and other critical elements. With AI, Innumerable of transactions can quickly be analyzed to generate more offers for targeted customers.

Machine learning

Alexa, which has become a household name, is one of Amazon’s more visible AI applications. However, one of the company’s most lucrative applications of AI is less apparent and more integral to its operations.

Machine learning drives the algorithms which are core to Amazon’s targeted marketing strategy, allowing the company to predict what products will most likely interest customers and to provide customized recommendations based on customer searches. It has been estimated that Amazon’s recommendation engine drives 35 percent of total sales.

If machine learning can give major benefits to Amazon then why can’t other business enjoy these super benefits

Image search with outstanding precision

Image processing is moving forward fast. A form of AI technology implemented in Tesla is capturing images and utilizing it for self-driving features, sharing it with their entire network of vehicles. It is only a question of time before a person is going to be able to enter the image of the clothes he or she likes, and precisely similar results are going to be presented to that person.

This is going to make the shopping experience a more pleasant one. Also, the profits of the ecommerce company are going to skyrocket, as they are going to offer exactly what the customer is actually asking for.

Product recommendations

Artificial Intelligence provides a much better customer experience by improving on product recommendations. It helps to drive sales by providing customers with products that they desire and are more likely willing to buy.

AI helps improve e-commerce core operations to increase conversion rates with algorithms for demand forecasting, product search ranking, recommendations, merchandising placements, A/B ads testings and much more.

Machine learning algorithms can alter the recommendations based on the stage or channel a customer is shopping in. For example, prioritizing similar products may be used on a product details page, while prioritizing other complimentary products may be used on the cart and checkout pages.

The benefits of AI in online recruiting

There is plenty of talent out there and companies try to tap into the immense potential of such unpolished gems. Highly qualified individuals are waiting for a chance to prove their skills, but often they remain unnoticed. Companies go to great lengths and spend large amounts of money to find the best candidate for the job. Experienced interviewers eventually get it right, but the process is time-consuming and results are not guaranteed. This is where artificial intelligence can make the difference and greatly improve the odds.

These were 5 different ways in which artificial intelligence is going to affect the ecommerce industry. Generally, it means that customers are going to have a much better experience with online shopping, whereas businesses are going to be in a much better position to make a higher number of sales.

We can only sit back and wait, but one thing is clear, AI will certainly make some groundbreaking changes in the future.

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