Artificial intelligence plays an essential role in the eCommerce industry. It has created many opportunities for new business ventures. It has also and helped established companies to focus on improving customer experience. The eCommerce space is continuously evolving and is benefitting from artificial intelligence too.
However, what is it that makes AI stand out in the industry? How are eCommerce businesses growing? In this article, we wish to answer all your questions and help you understand the real power of artificial intelligence.
Why Artificial Intelligence in the eCommerce Industry?
Artificial intelligence helps companies to make predictions to automate operations. It creates an impact on both user experience and brand awareness. Manufacturers, retailers and even startups can set new standards in the industry. Retailers, too, can explore new ways to sell their products and services. Besides, the buying habits of consumers are also likely to change. Above and beyond, AI is capable of solving real-world problems and put eCommerce challenges to rest. Here is an insight that might help.
According to Unified Infotech, by 2025, the AI revenue is expected to touch almost $36.8 billion in the global market.
Let’s also look at the application of AI that is helping eCommerce stores grow:
1.Advanced Visual Search
The visual search technology uses actual images like screenshots, internet images & more to refine online searches. It understands the content of the image first before suggesting results. This helps eCommerce businesses, especially those in the decor and apparel space.
Tech giants like Amazon, Google, Pinterest & many others are developing their own visual search engines. Many popular retailers like eBay, Walmart, Levi’s, Snapchat, Ikea, and more use advanced AI-based visual searches to give customers the experience they want.
You must have noticed that whenever you look for a particular product, say a pair of shoes or a bag; you are most likely to get similar future recommendations. It is how eCommerce stores make their customers feel valuable and important.
Personalization is a result of AI, which works towards improving customer experience. The product related to the user’s search is carefully tracked and monitored. This is how users then get the most relevant suggestions in their subsequent purchases.
AI is always advancing & new technologies are continually emerging, intending to keep the customer engaged. Voice assistance is both the present and the future. It simplifies the search for users and provides just the results you want to see. Smart voice assistants like Alexa and Echo allow easy interaction to be directed to the right products.
4.Automated Product Description
Product description plays a critical role in either the success or failure of an eCommerce business. Even if the image is perfect, a lousy description could make you lose a customer. Of course, we know that manually putting together product descriptions is a long process. Also, human errors are likely to increase along the way. That’s where AI comes into the picture and automates the process of writing product descriptions.
The search functionality is one of the main features that appeal to customers. Users want to know how quickly they can find a product or service. T majorly affects your conversion rate. Most people today look for products online. However, even the slightest spelling mistake can cost you a customer. eCommerce giants, yet have a solution to these problems. With a smart search enabled, customers can still find what they what even if they make a typing mistake.
A smart search feature is especially useful if you have a wide range of products in your eCommerce store. For the same, every product must be made visible to customers.
6.Internet of Things (IoT)
Internet of things is what everyone is talking about today. It allows devices to exchange data through the internet. Besides, it also helps eCommerce and retail businesses improve their operations. IoT comes into the picture to help warehouse management, inventory management, supply chain management, and overall customer experience.
Warehouse automation is playing an even more critical role in the eCommerce space today. Benefits like the same day or next day delivery are now what customers expect. Thus, warehouses need to function even more efficiently. To meet the increasing order demands, warehouses are doing away with traditional methods of forklifts, clipboard-bearing and stock managers. With AI-driven smart robots, items are continually being moved 24*7.
Cybersecurity experts are still wary about replacing AI to handle cybersecurity. However, AI is continuously extending its capabilities in cybersecurity. Here’s a look at how AI is helping this space:
- AI helps in updating security databases. It analyzes logs from different sources and artificial intelligence can detect threats. It can also look for malware and spyware by analyzing data across channels.
- AI is also able to identify unusual activity. It can find large malware movements. It can detect whether an activity is an actual threat or a false alarm with certain parameters in place.
With the advancements in AI, the future of eCommerce will see a vast transformation. In terms of both security and customer experience, the industry will continue to see innovation at its core. With effective AI solutions in place, we are confident that the eCommerce industry will boom.