The Growth of Artificial Intelligence in E-commerce

Written by on 5th June 2018

Artificial Intelligence (AI) is starting to change the way we live our lives every day. No industry is immune to the effects of AI technology, and we’re starting to see a glimpse of how our future might look with the rise of artificial intelligence. E-commerce is one of the industries seeing a particular growth thanks to AI tech. How exactly is artificial intelligence changing the world of e-commerce? From the way customers interact with companies to personalized shopping experiences, AI is clearly here to stay! Keep reading to learn more about AI technology in the world of e-commerce!

Building a Personalized Customer Experience

In the age of online shopping, personalization is at an all-time low. Websites sometimes seem to be designed for robots rather than humans. Stale copy, one-size-fits-all navigation, and unresponsive advertisements keep customers away from some e-commerce websites. According to Walker, by 2020 customer experience is expected to overtake price as the leading reason users choose one website over another.

AI technology helps boost the customer experience by creating a personalized shopping experience designed around each customer’s individual needs and interests. A users IP address can be used to create custom advertisements, direct messaging, and more. If a user visits an online shopping platform and searches for coffee mugs but decides not to buy them, AI technology allows the websites to remember that information. When that user comes back, he or she will see those very coffee mugs on the front page!

A lot of well-known businesses are already taking advantage of personalization when it comes to artificial intelligence. Netflix has an algorithm to show users movies similar to those they’ve already watched. If a user loves action films, Netflix continues to recommend additional action films, learning more about the user’s preferences. These trends show that personalization thanks to AI technology is changing the way customers interact with companies!

AI Transforms Customer Service

We’ve all contacted customer service at one point or another to varying degrees of success. A business can quickly get a bad reputation if it fails to pay attention to the quality of its customer service. Salesforce, a leading customer service platform, argues “When it comes to customer service, your clients know what they want, and they know that if they don’t get it from you, there’s an entire world of competitor options for them to choose from.”

Artificial intelligence is stepping up to the plate when it comes to customer service. While it’s hard to replace genuine human interaction, there are many instances when AI technology can fill gaps in customer relations. Customer Relationship Manager (CRM) systems are the prime example of this. Chatbots include automated intelligent responses that can respond to a variety of customer concerns through a CRM system. For example, a customer who needs to know when their product will ship can as a chatbot who can provide a clear, quick answer.

Chatbots might not be able to replace large-scale customer service needs, but it’s perfect for small, easy challenges that happen every day in e-commerce. Including intelligent chatbot technology provides customized customer solutions without the big price tag of hiring more customer service representatives!

Intelligent Data Makes Intelligent Decisions

Analyzing data is one of the most important parts of growing any business, especially an e-commerce business. AI technology is changing how traditional companies analyze their own data and even providing big solutions to combat everyday challenges. CEO Ollie Smith of ExpertSure reports how one of the most important parts of e-commerce is payment processing, especially when it comes to abandoned carts.

E-commerce businesses are always looking for ways to reduce abandoned carts, and AI technology proposes simple solutions to this problem. Artificial learning helps keep customer interest while learning more about why customers abandoned their carts in the first place. A prime example of this in action is the Granify application. Granify predicts when a shopper is losing focus and delivers the right message to keep users interested. More intelligent shopping intervention like Granify is likely to appear in the next few years, changing the way people purchase products online.

Online Shopping and Artificial Intelligence

AI technology is here to stay, and it’s altering the world around us in positive ways. With so much growing competition in the e-commerce industry, anyway a company can get an edge is good news. Artificial intelligence provides complex solutions to complex problems through intelligent data. Keep the focus on the customer by using all the tools at your disposal!