What is Artificial Intelligence?
Artificial intelligence (AI) is the core concept of replicating human intelligence processes through the creation and application of algorithms that are built into a dynamic computing environment. In a nutshell, AI makes computers think and act like humans. There are three important components to this:
1. Computational systems
2. Data and data management
3. Advanced AI algorithms (code)
The whole point of intelligence is to make every human’s life easier. Researchers wanted to bring in an emotional component to the machines along with the general intelligence they possess. We are at the beginning of this technology but we are starting to see how this is coming about. Starting from the product design process to sales forecasting, artificial intelligence is just about everywhere.
How can AI transform E-commerce?
The internet has provided businesses with the ability to offer their customers with unbeatable digital experiences. The e-commerce sector has unlocked new opportunities to help grow your business and sales exponentially. Artificial intelligence is taking e-commerce shopping to the next level. Here are three main ways artificial intelligence will have a serious impact on e-commerce in the coming years.
1. Visual search
E-commerce owners can create hype and the “impulse to buy right now” feeling for their buyers with the use of visual search capabilities that allow them to upload images and find similar/complementary products.
2. Bridging online and offline worlds
The visual search capabilities enhance and boost the connection between the online and offline modes of your e-commerce business. Retailers must change the way they interact with their consumers. Artificial intelligence will help them gather a great deal of important information about their customers thus helping them to improve their customer service and gradually increasing their sales.
The personalization concept in e-commerce is not a new concept. Artificial intelligence has enabled e-commerce business owners to offer a more personalized shopping experience thus boosting their sales. This is already working now and as it grows and becomes more sophisticated it will truly take over the online shopping experience.
Why You Should make Use of Artificial Intelligence in Your E-commerce Website:
Every business has to really prove themselves and come up with something unique to truly be competitive. Incorporating more advanced technology like artificial intelligence is pretty much a necessity to stay alive. AI will help you understand consumer behavior and thus offering them a more personalized shopping experience. Here are some key factors as to why AI is so important in e-commerce:
1. 20% of consumers will purchase goods from a chatbot.
2. 40% of consumers are making use of chatbots to explore for offers and deals.
3. By 2020 image and voice-based product search will make up about half of all online searches.
4. Almost 60% of shoppers enjoy personalized customer service when shopping in-store as well as relevant product recommendations when shopping online.
5. There is a high possibility that by 2020, around 80% of all customer interactions will be done with the use of artificial intelligence.
This should assist you in evaluating how crucial and important AI is for your e-commerce business. To become business savvy and expand your business globally, AI will most likely be your best option.
1. User Experience:
E-commerce business owners should always focus on offering their customers rich shopping experiences. AI can provide them with great user experiences by enabling you to design a brand new website or augmenting the power of smart widgets to your existing site. The business to shopper personalization is a significant factor for success where it would maximize your ROI and brand equity. For example, landing a shopper on a page without a good user experience would eat the marketing efforts due to low conversion.
Here are some artificial intelligence tools that could offer more personalized experiences:
Choice.AI: Choice AI helps you create more personalized eCommerce landing pages as well as smart banners in real time. This helps the business owners get top line growth, allows retailers to drive sales through mass discounts and promotions, and provides significant control on profitability. Choice.AI can help you generate more sales with personalization rather than just throwing out random discounts here and there.
B12: B12 is a great way to build your website from scratch. B12’s user-friendly robots help you to draft your site based on your inputs. They also provide you with suggestions from their expert designers. With this AI tool, you can create a unique style and design with the ability to make quick updates. This is suitable for all sizes of e-commerce businesses.
2. Predictive pricing and incentives:
Artificial intelligence tools with its advanced computing algorithms can help you ass a dynamic pricing layer to your store. By leveraging the machine learning and data science to understand your user’s behavior, the product price can be modified in real-time. Some advanced AI tools also consider the competitor’s pricing and market demand and help you increment/decrement the product’s pricing based on those outcomes.
Granify: A next-gen AI tool that monitors shopper behavior in real time by analyzing tons of attributes to show personalized incentives and pricing factors. Gratify’s machine-learning decision engine predicts which in-session buyers you may lose and then works to convert them.
Personali: Personali creates personalized incentive plans to increase sales factors. Their intelligent incentive platform uses predefined machine learning algorithms, developed by professional data scientists and behavioral economists. It’s used to help the business owners perform precision targeting of shoppers with intelligent incentives and offering the optimal incentive type, level, and experience in real-time.
3. Marketing & Analytics:
When it comes to subsections of marketing, most of the leading brands make use of machine learning concepts like user data enrichment, user identification across devices, intelligent Ads personalization, predictive analytics and so on. e-commerce businesses can also make use of these tools to grow and enrich their brand. Here are some common tools that could be used for e-commerce businesses:
Wacul-AI: AI analyst tool provides user-friendly proposals and solutions for the entire E-commerce web application enhancements. You can easily connect your Google Analytics with this tool in a few easy steps to get weekly and monthly reports. This provides detailed yet simplified advice with a future demand analysis driven by the acquired data.
NeoWize: NeoWize helps you access the entire behavioral data of your customers and potentially transforming it into actionable insights. Its AI-driven solution will help you streamline the marketing and inventory aspects of your business. This tool is suitable for all sizes of e-commerce businesses.
4. Visual search:
Enabling your e-commerce shoppers to search for items in your catalog just by taking a picture on their phones is a very good technique to increase their engagement. As mentioned this can be accomplished through AI. The tool picks similar products based on parameters like color, texture, shape and so on. These tools are really helpful for clothing stores with a large catalog.
Cortexica: Cortexica is a cutting edge AI tool that automatically identifies objects and products within a photo image. They have the ability to analyze all objects, perceptual elements like settings, colors, patterns, and shapes in the image providing a summary of the mood, theme or emotion of the image. They are one of the top platforms for visual search which is highly suitable for all sizes of e-commerce stores.
The customer experience will continue to be the battleground for businesses to achieve a competitive advantage. AI in e-commerce will have a direct impact on core business functions like transactions, customer retention, satisfaction, efficiency and many more.
Are you an E-commerce business owner looking to take advantage of artificial intelligence? Get in touch with the top software solution provider – SDI with strong expertise in building scalable AI, ML & IOT products for any e-commerce business. Contact Rob Lapointe at firstname.lastname@example.org or 408.802.2885