Four Ways Artificial Intelligence Is Transforming E-Commerce
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There isn’t an industry in the world that is immune to the influence of artificial intelligence (AI). From virtual reality (VR) gaming systems to AI robots in industrial manufacturing, the development of AI technology is revolutionizing the way we interact with the world.
But e-commerce is especially susceptible to AI disruption, as learning technologies and algorithms are currently transforming the way we buy and sell goods online. Not only can AI perform the tasks we previously did manually, but it can also optimize the customer experience and provide retailers with the information they need to make an informed business decision.
Here are four ways artificial intelligence is transforming e-commerce:
1. AI Copywriting
The introduction of artificial intelligence copywriting is revolutionizing the way brands create their sales copy. AI writing tools can generate marketing copy within seconds. Instead of hiring copywriters or ad agencies to write headlines, blog intros or product descriptions, brands are now able to use AI software. These tools can offer digital ad copy, social media content and other e-commerce copy using advanced AI language models.
Although most AI copywriting still requires some form of manual editing, it is well on its way to becoming a fixture of e-commerce.
2. Chatbots And Virtual Assistants
One of the benefits of shopping in a physical store is the presence of an employee or assistant who can help you navigate the store and find what you’re looking for. While e-commerce has always had customer service representatives who can offer phone support, it wasn’t until recently that AI helped fill in the gap to provide customers with immediate assistance. The use of chatbots and other virtual assistance is increasing among e-commerce retailers, providing 24/7 support to all their online customers.
These chatbots can interpret voice-based interactions with online shoppers through natural language processing (NLP) and provide personalized offers to customers. They’re also continuously improving, as they’re programmed with self-learning capabilities that better equip them to address customer needs.
3. Personalization
AI is also incredibly adept at providing a personalized experience to customers through accurate product recommendations and advertising. AI algorithms will sift through enormous datasets to retrieve actionable insights into customer behavior that will help them better predict exactly what a customer needs, when they need it. They can use the information from your shopping history to suggest products that align with what you’re searching for. For example, if you’ve recently searched for sponges on Amazon, the AI algorithms will recommend other related cleaning products on your page.
This AI technology can even be used across platforms such as websites, email and even mobile apps. By helping you create localized content to fit your audience (or multiple audiences), AI can help you give your customers a more enjoyable and streamlined experience. Personalization is the key to a pleasant customer journey, which is why so much e-commerce advertising is now using artificial intelligence algorithms.
4. Inventory Management
Another area of e-commerce where AI’s predictive analytics are reshaping the terrain is in the context of inventory management. Storage facilities don’t have the space or the money to always keep everything in stock, which is why it’s important to prioritize the products you need when you need them. Inventory must be kept up to date, stored properly and ordered ahead of time — based on predictions of customer demand.
AI technology uses predictive analysis to make estimates about what future demands in the market will look like. With the use of machine learning, this AI technology becomes better and better at accurately predicting what inventory you need to order and how much of it you should always have on hand. These AI systems can anticipate quick changes in demand, conduct preventive maintenance for your technology and even automate certain packing procedures to increase efficiency.
E-commerce brands are increasingly turning to artificial intelligence to improve their analytical insights, create a more personalized customer experience and increase their competitiveness. As the market for AI in e-commerce continues to grow, any brand not investing in its potential will be left in the dust.