6 fascinating AI in e-commerce transformations

Artificial Intelligence (AI) has been continuously shaping business landscapes. AI technology has a wide array of uses in different parts of business operations. 

When it comes to e-commerce, it is less about the humanoid and more about the algorithms and e-learning technologies. This is because e-commerce relies heavily on automation processes.

AI can assist today’s online retailers to deliver an optimized customer experience on and off their e-commerce websites by utilizing accumulated consumer and business data to make business decisions and more accurately predict the future.

Currently, e-commerce is among the sectors that have been taking full advantage of what AI technologies offer. This article will discuss how AI in e-commerce works, including what it contributes to online businesses and consumers. 

The role AI plays in e-commerce

AI made innovation in e-commerce even more extraordinary as it enables organizations to respond to the demands of online consumers effectively. On top of that, using AI in e-commerce has provided many benefits to businesses in different sectors. 

It is helpful to have a grasp of the role that artificial intelligence is playing in the development of e-commerce if you want to comprehend how this may affect your firm.

Six AI transformations in e-commerce

The use of artificial intelligence is not only a fresh technology done for the sake of its “wow factor.” The incorporation of AI should have the ability to impact a business on a wide scale. 

For example, here are six examples of AI in e-commerce transformations:

1. AI-powered virtual shopper assistant

COVID-19 restrictions caused many businesses to shut down daily operations and restricted most people from going out. However, these implications opened an opportunity for online shopping. 

AI in e-commerce plays a vital role in shaping the online shopping experience. The use of an AI-enabled chatbot that assists consumers served as a significant advantage for online shoppers to shop with ease. And it also helped online markets more in their revenue.

An AI-powered virtual shopper assistant can even help a consumer decide what or which product will suit their lifestyle. One example of this is a pop-up suggestion saying, “find the best ultra-light jacket for this rainy season here.”

2. Visual search 

Aside from the online shopping experience, AI can also be utilized on various social media platforms such as Facebook, Twitter, and Instagram. 

Suppose consumers would like to try on “matchy” costumes with their friends or copy the outfits of their favorite TV show characters. In that case, the visual search engine makes this possible by allowing the user or consumer to take a picture of a similar item they’d like to purchase online.

Consumers no longer have to go out and purchase the product in the physical store or scroll the items online, which could be a waste of time. Simply upload the image, and a bunch of ideas for purchasing similar items to the image will appear.

3. Automated response

AI in e-commerce is now also able to automate business processes. AI has a system that understands different languages spoken and can respond more humanly. 

An example is when a system receives a high volume of inquiries. Of course, one person alone will have difficulty responding to the queries and concerns, and even working with other employees or departments isn’t possible when different workloads are in line. 

With this AI automation in e-commerce, businesses can save time, allow flexibility for employees and consumers, and enhance their user interface. It’s a win-win situation for both organizations and clients.

4. Knowledge-based preference suggestion

Knowledge-based preference suggestions enable businesses to understand their customers’ wants and needs better.

For example, through AI technology, organizations can modify their wallpaper styles or lounge areas based on the consumers’ aesthetic preferences. Businesses are more likely to grow and succeed faster when they truly know and understand their customers’ desire. 

5. Personalized consumer experience

Modern customers prefer seld-service platforms or instant messaging chats to solve their problems and concerns. Many customers prefer to talk to a customer service agent as their last resort when they encounter issues with particular products or services. 

In an Entrepreneur blog, Omri Katz, CEO of Dialogue, says that “98% of online users will leave the online store without making a purchase” when they visit an online store. If this continues, businesses will most probably experience a significant loss in revenue. 

Frustration is one of the main reasons why a consumer leaves without a purchase. That’s why a personalized consumer experience brought by AI can help e-commerce businesses identify what their customers needs and boost their revenue. 

6. Interactive in-store intelligence

Ai in e-commerce helps businesses build user-friendly webshops and online marketplace applications that are also able to collect customers’ data. 

This gathered information lets organizations determine their customers’ previous search histories and purchases. Thus, allowing them to offer products or services preferred by individual customers. 

Retail companies should know how to use AI in e-commerce to their advantage. If done right, AI technologies in e-commerce can strengthen customer relationships and enhance businesses’ overall income. 

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OP360 Team

OP360 is a leading provider of operational solutions, specializing in delivering tech-driven strategies and solutions that enhance business performance, which include customer support, back-office support, and content moderation.
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