One of the most revolutionary technologies we have seen in the last decades is Artificial intelligence (Al) and its several sub-domains. Big companies like Amazon, and Alibaba are always looking to utilize new advanced technologies to stay ahead of their competitors in the e-commerce market. Likewise, Amazon has started to incorporate different aspects of Al in their strategy and profit from it. Here in this article, we will highlight the four applications of Al in e-commerce and how you can increase your revenue and customers from it.
4 Applications of Al in E-commerce
You might be surprised to know that in 2021, the number of people who bought goods or services online stands at 2.14 billion. It makes up 27.6% of the around 7.74 billion people worldwide. It means that one out of four people has purchased a product or good from an online website. These numbers have increased 4.4% from 2020 when there were 900 million online buyers.
On the other hand, the US doesn’t lack online shoppers either. In 2021, around 230 million people were online buyers in the United States. People are seeking online shopping because they can order sitting at their comfortable location. Moreover, e-commerce shopping provides the buyer with an opportunity of using online promo codes to avail of great discounts. People prefer to shop online because they can save their travelling expenses and don’t have to ask about the price of the same product in different shops just to get an idea of the product’s average market price. On the internet, you can check the product’s price average price by visiting different store’s websites in just 2 minutes.
Considering the statistics of online shopping around the world and the USA, there is no surprise that e-commerce is one of the important sectors in which companies have utilized artificial intelligence for their services. It is unimaginable for companies to provide efficient functionalities without the help of Al. Following are the four applications of Al in e-commerce.
Customized Shopping Experience
Artificial intelligence is providing customized customer experiences with the help of customer consumption pattern analysis. In other words, Al lets you segment your potential target audience, thus making it easier for you to create campaigns and messages for each customer based on their routines and choices. Without using Al, you need to know and understand your target audience. One of the most effective ways of understanding your audience is by offering them the best discount codes on different occasions at your store. Practicing this strategy helps you in understanding your potential target audience’s interests and choices.
With the utilization of Al in e-commerce, it can optimize your customer journey by making it comfier and adjusted to their needs. Al sub-domains, such as machine learning lets programming systems make automatic decisions based on the study of your customer data. Another sub-domain of Al-Deep learning aims to imitate the brain to allow personalized suggestions. These techniques help in identifying the attitude and intentions of your customers.
Analyze the Image Search
Image search is an incredible functionality of Al for buyers and sellers. Using image search buyers can manage their catalogues more easily, and quickly. For sellers, it is a prospect for relating to their buyers. According to a study from Pinterest 93% of users plan their purchases after seeing the site. Al creates searchable images in which the user can view the products appearing, and buy them quickly.
Amazon Recognition-Image recognition technology helps to identify emotions, scenes, text, people, and activities. It simplifies the process of analyzing live photos and sending emotional qualities to provide regular reporting on store trends. Similar to Google’s Cloud Vision API, Microsoft Cognitive Services enables the creation of similar visuals, including faces and emotions. In the coming years, image search will become increasingly popular around the world. Ali express now allows us to compare images with their catalogue to identify the most similar goods to what we’re looking for, implying that we’ll soon be able to buy anything simply by comparing photos.
Smart Speakers and Voice Assistants
Smart speakers and voice assistants are an amazing application of Al. More than 200 million people have bought smart speakers in 4 years, which has gained them the title of the fastest adopted technology in history. Meanwhile, voice assistants have become a habit for most consumers since they tend to use them to perform searches as well as purchases from online websites.
There are several voice assistants in the market, the most popular are Google Assistant, Siri, and Alexa. Google Assistant understands 100% of requests and 93% of correct responses, followed by Siri with 83%. Amazon’s Alexa stands at 80% is a successful voice assistant in the e-commerce market. It enhances the user experience of online shopping. It is predicted that a quarter of the global population will use voice assistants in the coming years.
Al is improving the functionality of the customer service by making incredible strides. It provides natural language processing systems known as Chatbots which is used by big tech social media giants and companies. They are automatic assistants that carry out the customer service tasks such as answering the queries of customers, order management, assisting in recommending the product, etc.
It also carries out satisfaction surveys, and remarketing campaigns for customers who left the website without ordering. Due to this tool, several companies can provide efficient and quick 24/7 service with multiple users at the same time in different languages. Sometimes it’s hard to detect whether you’re talking to a real person or a bot.
After reading the applications of Al in the e-commerce marketplace, you must be thinking of how to apply Al to your e-commerce business? The best way is to execute the Al strategy is to understand which programming technology works best for you. After learning enough Al, you should be able to identify the technology most suitable for your business. Hire a team for developing the programming technology and enjoy the Al functionality in your business.