How Artificial Intelligence Will Dominate E-commerce?
Artificial Intelligence is a very trending topic in the current competitive world. AI is offering smart business solutions to small and large enterprises. The AI is also benefiting the eCommerce in a large way.
AI technology has helped e-commerce to reach greater heights. In other words, AI is revolutionizing the mobile app world and the whole structure of businesses.
AI has helped in improving user experience and increasing brand awareness. It is helping the startups, manufacturers, and retailers to set a new example in the industry.
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How is Artificial Intelligence improving the traditional shopping experience and e-commerce?
AI is transforming the business models of many brands and enterprises. New technological advancements are being innovated in the industries.
The integration of Artificial Intelligence in e-commerce is increasing the marketing standards for many companies. It has helped in creating a more personalized experience by performing the analysis of data sets, and by identifying different patterns of consumer behavior.
Here are some of the ways that depict how Artificial Intelligence has dominated the world of e-commerce -
1. Visual Search Engine
The e-commerce sector has started the use of artificial intelligence by using visual search engines. This helps the user by allowing them to search for whatever they desire with a single click.
The visual representation of the products has proved to be more appealing to the customers. The customers can now view the size, dimensions, design, and color of the product before ordering it.
This helps in improving the consumer experience of the brand.
2. Provides Personalized Recommendations
Artificial Intelligence uses pop-ups, texts, and emails to provide product recommendations to the buyers.
It tracks the searches made by the users to understand consumer behavior.
The search engines and other social media platforms also display images and ads of the product related to the interest of the user which is also tracked by Artificial Intelligence in e-commerce.
This helps in improving the reviews and ratings of the e-commerce platform that thereby helps in increasing the return of investments (ROI) of various brands.
The e-commerce retailers use recommendations to provide the best solution to the customers.
For instance, Amazon uses the data from past purchases of the customers to recommend new products. On the other hand, Netflix uses consumers to view history to recommend different movies and series.
3. Voice and Virtual Assistance
Artificial Intelligence is focusing to provide more interactive solutions to the customers. It provides real-time voice assistance to the users. This has largely contributed to improving the user experience.
This makes it easy for users to interact with service providers. You must be familiar with some of the popular virtual assistants like Alexa, Google Assistant, and Siri. E-commerce companies are focusing on adding virtual assistants on their respective platforms.
The virtual assistant can easily process the native languages and can easily interpret and understand the messages of the customers.
Virtual assistants have completely transformed the purchasing process of consumers.
For instance, in 2017, Starbucks launched ‘My Starbucks Barista’. This allowed consumers to use voice to place orders.
The algorithm used by AI extracts data like purchase history and preferences made by the customers. This personalized data is used by Starbucks to send offers and recommendations to the customers.
4. Use of AI in Lead Generation and Sales
One of the most significant uses of AI is in generating sales for e-commerce platforms. It extracts the data of the consumers and tracks the purchasing patterns of the buyers.
Imagine how time-consuming it would be if humans had to collect data and track consumer behavior. AI has lowered the burden and has made these tasks quite easy.
This has largely assisted various brands in generating leads and increasing sales.
5. AI Offers Services at Lower Costs
The services provided by AI are quite affordable. It makes the daily processes automatic and improves the shopping experience.
One of the most cost-effective services provided by Artificial Intelligence is Chatbots.
Chatbots are software that acts as a medium of interaction between the consumer and the service provider. It helps in resolving the queries and questions of the customers in real-time.
The response time has largely decreased with the use of chatbots. It also reduces the cost of hiring customer service officials as it can perform all the tough tasks in real-time. A customer-centric approach is developed by using Chatbots.
6. AI Helps in E-commerce Marketing
Marketing in any business is an expert’s work. AI solutions provide a cost-effective way to assist in the marketing of various brands.
These businesses can offer their marketing plans and campaigns to AI platforms like Acquisio. Marketing operations are handled quite efficiently with the use of these platforms.
It provides marketing solutions on various social platforms like Facebook, Google Adwords, Bing, and more.
The AI solutions help in minimizing the Cost Per Click and utilize the marketing budget in the most feasible manner.
The EndNote
The above-mentioned points reveal how Artificial Intelligence will contribute to e-commerce. AI has transformed the business models of many small and large businesses.
AI has made its place in our day to day lives. It is expected that Artificial Intelligence will be the major theme for new innovations by major tech companies like Microsoft and Google. These companies are making huge investments in AI ventures.
Recently, Google has purchased an Artificial Intelligence company named DeepMind worth £400 million. This startup has a specialization in machine learning.
Various other technology firms like Yahoo and Facebook are also planning to invest in Artificial Intelligence.
According to a report by Business Insider, by 2020, 85% of the consumer interaction will be done without the involvement of humans.
Thus, to cope up with the current competition and to stay ahead in the business world, make sure to inculcate Artificial Intelligence in your business model.
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