ccording to a research by Accenture, AI could potentially boost profitability rates by an average of 38% across 16 industries by 2035.
AI will particularly benefit the retail sector because of its immediate impact on two fundamental areas that have a serious impact in retail ecommerce; creating a very personalised shopping experience and making smart business decisions.
Artificial intelligence in ecommerce is also helping ecommerce platforms to cater the needs and interest of the users.
1. AI-Assisted Product Recommendations
Retailers are able to use Big Data (the collection and compilation of data from different channels, previous transactions and other activities) to determine the trends in the shopping habits. This analysis could be used for personalized product recommendation.
2. Advanced Semantic-Based Search
When we talk about personalization in the context of ecommerce and customer support, right now there is nothing better than intelligent customer engagement at every point of contact.
One of the most important aspects of personalization is the ‘search result’. With advanced semantic-based site search, customers are able to easily navigate the store and find the relevant products without wading through a lot of unnecessary results
Chatbots might just be the ultimate solution for the customer support woes. The good news is that modern chatbots are able to interact with customer databases and extract details of a customer and respond in the most appropriate and personalized way in real-time.
Chatbot provides a comfortable customer experience that keeps visitors from leaving the website without making a purchase.
4. Virtual Assistants
Other application of artificial intelligence in ecommerce is through virtual assistants. Virtual Assistants contribute a lot in creating an efficient sales process. These assistants communicate with customers to understand their preferences and provide them with an intuitive shopping experience.
5. Efficient Company-Wide Decision Making
- Pricing and Inventory Management
Pricing products is no more a guess work. AI can use complex learning algorithms that assess market dynamics and all the other relevant factors of market competition. Optimal pricing of the merchandise helps a business stay relevant and ultimately succeed in a competitive environment.
- Business Analysis
Putting all the data to use, you can also determine the kinds of products and business actions that have decreased efficiency, increased conversions, and if anything needs readjustments. These comparisons pertain to market share, pricing patterns and overall progress of a business.
6. Cybersecurity Enhancement
Ecommerce websites have a ton of customer data that will be vulnerable if there aren’t any proper cybersecurity measures in place.
- Detection of New Threats
Unlike traditional software, AI software tend to get smarter with time as new types of malware and threats emerge. Therefore, they will be able to quickly detect malware or ransomware attacks on your website before they’re able to cause any serious problems.
- Blocking Out Bots
Bots form a large amount of the internet traffic today, and they can prove to be dangerous. Bots can steal credentials, create fake accounts and cause data fraud.
7. Sales Forecasting
Sales forecasting and inventory management has become an absolute necessity for every business. To avoid any unforeseen shortages or stock run-outs, ecommerce businesses can now use artificial intelligence for sales forecasting. Software like Mintigo make use of AI to predict future sales based on consumer patterns and help decision-makers predict the results of their marketing efforts.
8. Fighting Fake Reviews
Believe it or not, online reviews can make or break your brand. One fake review from your competitor or a bot can turn things around for your brand