Top 8: The Role Of Artificial Intelligence In e-Commerce | 2018
With the evolution of Artificial intelligence, our lives have changed. There is no industry that doesn’t use the AI for providing a better service to its consumers. From Apple’s Siri to Amazon’s Alexa, every industry wants to sell something that has AI. And why not, it is the future, and it is going to change the world of business, hopefully for the better.
One such industry that is starting to tap on the technology of AI is e-commerce. With the increase in numbers of e-commerce websites, the growth of artificial intelligence in e-commerce is also gradually increasing. The owners are tapping it to provide better services to the consumers.
In this blog, we will learn about the various benefits of artificial intelligence in the e-commerce industry like personalizes shopping carts and so on.
What is Artificial Intelligence?
- It is also known as machine intelligence because this intelligence is seen in machines. It first came into foresight in the year 1968.
- The machines (small and big both) possess an intelligence that we normally see in humans.
- Artificial intelligence is directed towards helping humans in every sector of their life. From Siri- which is our personal assistant to automatically opening cars, all use AI for functioning.
- In recent years, many industries have used this technology to better their services. And now, the growth of artificial intelligence in e-commerce has started a new revolution.
Benefits of artificial intelligence in e-commerce sites
The benefits of artificial intelligence can be seen through the development of applications which has changed the entire face of e-commerce websites. Here are some e-commerce applications that are based on AI.
1. Chatbots for customer service
Nowadays, customers have become smarter, they want immediate results. Any problems or issue they face while shopping online has to be fixed immediately. This is the reason why the customer service tab is crucial.
The growth of artificial intelligence in e-commerce has given life to Chatbots. These chatbots quickly respond and resolve the issue faced by a consumer.
Chatbots are a form of AI that mimics human conversation. They are used to improve the customer service and are available 24*7. They are present in every e-commerce website. Visit any site, and you will be prompted to chat with a customer service executive. This is a chatbot which asks about the issue you face, and with the help of your past data solves it.
It personalizes the solution for us by looking at the records of our purchase. This is one AI application that is expanding quickly.
2. Create a personalized experience for the users
This is the age of online shopping and personalization is the key to success. If your online website shows only one size or unresponsive advertisements, you will quickly lose consumers. You need to show people things that they are looking for. The AI technology does the exact same thing. It personalizes the shopping experience of the consumers by showing them things that they need.
The AI technology tracks the user’s IP address and monitors their shopping/purchase history. Example: if you surf the web for a particular scarf, but didn’t buy them, this tech will help the site remember these details. Also, you will see custom ads for the same. When you come back to that site, the scarf will be the first thing you will see.
Netflix is also using this application for providing a list of recommended movies to the users based on their watching history.
3. It lets you search a product using an image
Many times we come across a product that we liked and would like to buy online, but are not sure what they are called. Well, with AI this will not pose a problem anymore. One of the benefits of Artificial intelligence in e-commerce websites is image search.
AI lets the users search a product based on images. This is even simpler on mobile apps for online sites, as the product can be found by just pointing the camera towards it.
4. Social listening
E-commerce industry promotes their service/product on social media as it has global reach. We can track the likes, but the actual reach of the brand is hard to figure out.
But with the help of AI, a new technology of visual listening is gaining momentum in the market. This tech lets the business find images/videos of their brand even if they are not tagged. This is great for them as they can monitor who is sharing their content. This furthermore, helps them to resolve any issue and negative spotlight. Facebook facial recognition tool is one such AI visual listening tool.
5. After Sales service
The website’s job doesn’t end with the buyer buying a product. They need to make sure that the product is working and customers are satisfied. This is crucial for the brand’s image. The benefit of artificial intelligence is that it can automate feedback forms, replacement and other issues faced by the customer.
6. It aids in Cyber security
E-commerce websites deal with a lot of transactions on a daily basis. Thus, the need for tight security is imperative for them. The growth of artificial intelligence in e-commerce websites has improved its security. They prevent and detect a hacking or fraudulent activity that might leak the private data of the user. Such breach of security is bad for the reputation of any company. Thus, they use AI and machine learning algorithms to prevent cyber-crimes.
7. It manages the inventory
It is crucial for the e-commerce website to be updated about their inventory. They have so many sections that keeping track of inventory they have, and they require is not humanly possible. But with the advancement of technology, AI based applications has made this entire process easy. They keep a record of things needed by correlating the current and future demand.
8. Handling bulk data
An e-commerce website has a bulk of data from sales or a total number of items sold in a week and so on. It is not possible to handle such bulk data without any technology. And AI growth has facilitated storing and handling of such data with ease.
These were the benefits of Artificial intelligence on e-commerce websites. With more and more business developing their online stores, the need for better customer experience is increased. As this is the only way, you can survive in the competition. With the growth of artificial intelligence in an e-commerce website, the business has a way to provide better and enhanced consumer experience. And this is the ultimate key for a successful business.
Ajay Goyal is a co-founder & Director of Endive Software. As a technology enthusiast, he always likes to learn more about new technologies and share useful information to the team. The mobile app development team follows his idea to build impressive and useful mobile apps.