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Artificial Intelligence in e-Commerce

January 3, 2020

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There is a proper way to access AI in terms of improving the complex elements of the consumer e-commerce experience. Service providers keep efforts only on machine learning (ML)-powered recommendations. In contrast, these functions are compelling enough, and executed output is excellent, and is one of the reasons that Amazon is so successful.

The impact of AI on e-commerce is extended well beyond recommendations. It touches all corners of the consumer e-commerce experience: from discovery and evaluation, research and development, through to cart management, transactions, fulfillment, and post-purchase follow-up actions. The various steps are connected and inter-related; AI e-commerce implementations must follow the same procedure.

Some critical areas to notify here, are the ways that AI is driving are:

Customized advertising at a larger scale.
Introducing secure marketing messages across channels.
Contexts and connected devices.
Improving automated ad bidding.
Inputs used to enhance the advertising thinking process.

Along with this, AI is bringing a new shopping experience. Today, AI assistants with a voice interface are providing a new e-commerce platform where 56% of the consumers are excited to use their AI assistant to buy goods and services frequently. Augmented reality allows consumers to logically and environmentally visualize products in a range of scenarios, which can help remove the doubt to purchase. Biometrics techniques (e.g., fingerprints, facial recognition, behavioral) have oversimplified verification and authentication process. ML solutions can monitor and detect abnormalities that indicate fraudulent activity in transactions. AI is also helping to make post-purchase actions more efficiently algorithms predict post-purchase next-best effects. For example, a price discount on a product that an intentional decision indicates a consumer is likely to buy.

Service vendors have to make sure they get in front of data privacy as the combination of AI and e-commerce increases the stakes. Information relating to transactions and personal finance is highly sensitive, while AI can increasingly extract and analyze consumer data. Service vendors with strong AI and strong privacy credentials are the future to win consumer trust and gain a competitive impact starting 2020 for sure.

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