How artificial intelligence will influence the future of e-commerce
Worldwide e-commerce currently accounts for almost 11% of world trade, and this will continue to grow in the coming years. But with the massive influx of Artificial Intelligence (AI), it is likely to grow even faster, perhaps even an exponential trend. But how will the AI intervene in ecommerce? Some explanations in this post:
About 25 years ago, a public poll stated that 90% of the polls said the web was a fad and it was going to disappear, and less than a decade ago, the world was skeptical about eCommerce, and even worried about the idea of using a credit card and making purchases online. But today, e-commerce exceeds $ 22 trillion a year in sales worldwide . It is also expected that it will reach 11% of all su retail in 2018 so it would be logical to say that this activity is increasing at a fast pace.
From this massive number, Asia-Pacific will remain the world’s largest e-commerce market, reaching $ 1 trillion in 2016 , a figure that is expected to double over the next two years.
Europe and North America are not too far behind. Americans are not only open to buying online, they are accepting it and now spending $ 51 billion on clothing, $ 26 billion in electronics, $ 16 billion in groceries and $ 4 billion dollars for pet products as well as for baby products .
Who would have dreamed of the day we would buy diapers and his shopping … online?
Today, not only the American culture, but the culture around the world is forced to face another major change that causes mixed feelings of skepticism and excitement (unlike the introduction of eCommerce there are years): artificial intelligence (AI).
While the AI has been a subject of exploration and development for years, it made its most popular debut when Apple came across a girl’s path under the name of Siri and before we could go In the end, iPhone enthusiasts around the world made requests to their devices like “Hey Siri, call [fill in the blank]”.
Since its inception, the AI has made phenomenal progress. So much so that by 2020 it is expected that 85% of customer interactions will be managed by non-humans and it will not be Martians but AI.
The rapid advancement of AI, as well as the increasing acceptance of e-commerce, has led to a cultural intersection that will completely transform the way we buy, buy and buy. In the near future, the AI will be able to:
Decrease bounce rates and increase customer conversions by creating an on-premises conversation
You will notice that more e-commerce sites are starting to use chatbots in the hope that customers will feel less like a number among others and better as the only customer in the store.
While this has improved the customer shopping experience to a certain extent, some might argue that the sculpin is a bit robotic.
This is because chatbots do not really belong to AI. They do not really understand the individual with whom they communicate. The majority of chatbots match words with a predefined database of answers, not yet creating their own answers.
However, applications like Mona seek to advance this idea through the integration of artificial intelligence. Mona dreams of creating the most personalized mobile retail assistant in the world.
The goal is to create a mobile shopping experience similar to an in-store conversation between a customer and a personal shopping assistant.
Today, Mona simplifies search, discovery and mobile shopping. That said, she will eventually be able to make returns and new orders too.
Regarding the future of e-commerce, you will see more adoption of Artificial Intelligence in the form of personal assistants. There is a personal element of physical in-person purchases that e-commerce does not currently offer. Artificial intelligence will help fill this void.
Improve the shopping experience by changing the way consumers search for products
In 2015, Pinterest launched a breakthrough version of AI as a visual search tool that allows consumers to easily and conveniently search their platform through images rather than words.
Brokers can now click on a Pinterest image, zoom in on an object in the image, and then search the site for the object.
For example, say you are looking at a picture of a kitchen and, in the picture, a pretty red chair catches your eye. You can simply zoom in on the red chair and type in the search. Pinterest will then search the site for images similar to those of the chair that caught your eye.
The huge problem in today’s e-commerce is the difficulty for customers to actually search for what they want. While online shoppers often know what they are looking for, they have trouble finding the right search term to find it.
AI has not yet been able to effectively bridge the gap between keyword searches and natural language, in part because the shopping experience is essentially visual for consumers.
Collect customer data and accurately predict what they will do in the future
Amazon Go is an innovative commercial technology that will allow consumers to buy in a physical store without having to deal with long paylines at the checkout and this by providing what Amazon calls the “Just Walk Out Shopping” experience.
By simply downloading the Amazon Go app, customers will be able to jump into one of Amazon’s stores, grab what they want from shelves, and then leave. Shortly after departure, the customer will receive an online receipt that will be billed to their Amazon account.
In addition to providing an innovative checkout experience, this technology will allow Amazon to track the buying habits of individual customers and, in turn, anticipate the purchasing decisions they will make in the future. It will also enable Amazon to offer targeted products that they know can grab the attention of their customers.
“For example, if a customer buys 25 liters of London Daily ice cream a year, Amazon may choose to sell these products to customers such as insulating bowls that keep their ice cold.”
If Amazon Go succeeds, they will be among the first to bridge the gap between physical and online stores.
Influence the way we live daily, not just how we buy online
Although over the next decade we will see the first-line influence of AI on e-commerce, we will also note the influence it has on our daily habits.
“For example, the creators of Siri are currently working on a new form of Artificial Intelligence technology that they call Siri’s son. They hope it will be a virtual assistant who can respond to transactions such as calling an Uber, ordering a pizza and booking a flight.”
Understanding human habits and consumer behavior is essential to running a successful business, whether online or offline. To welcome AI by accepting the fact that it changes the way we, as humans, work, buy and live, will put you and your brand ahead of the competition.
Not only do we need to understand how our consumers buy but we also need to understand how they live daily. It will begin and end with artificial intelligence.
Let us know your thoughts (in the comments below) on which AI and machine learning applications will be used to automate e-commerce? And what do I miss?
Elitech Systems, A best ecommerce development company in India helps your company distinguish between good and bad apps . It is also possible to limit applications that can access sensitive or confidential data. Authorization management will block some of them on personal devices or work. This solution is certainly the best way to reinforce your existing BYOD strategy, as long as you have one.