This column is authored by technology blogger, Mayank Sharma
Digitization of retail industry has unveiled new realms and opportunities for the retailers globally. Over time shopping has evolved drastically and is no longer just a utility of bartering money for a product. It is predicted that by 2018 75% of developer teams will utilize Artificial Intelligence in building one or more than one services or business applications.
Over time Artificial Intelligence has made an impeccable space in the market. A study reveals that by 2020, around 80% of customer interactions will be handled by Artificial Intelligence.
In another study, it is found that 3 out of 4 online retailers in the fashion industry have plans to invest in AI over the next 24 months. The same research also shares that 67% survey respondents believe that AI will help them enhance their organization’s efficiency.
Not only these, a report shares that shoppers that interact with online opinions and reviews have 97% more chances of converting with a seller in compared to those who do not. The ecommerce development industry is indeed going through a major change.
What’s driving the trend?
The inclination towards artificial intelligence can be clearly noticed. But the question arises, what’s driving this entire flow? To answer this, we have here listed some ways in which AI is transforming the ecommerce industry and eventually gaining the attention:
- Personalized experience: Artificial Intelligence is consistently proving its expertise in delivering a personalized experience to users worldwide. AI can help online retailers add personalized pages to their website and give personalized recommendations to their visitors. This not only makes the buying experience interactive but also increases the chances of generating more sales. This is because the recommendations are not just based on what user previously visited or liked, but it also includes complementary products that they might probably like.
- Faster and reliable decision making: AL has simplified modeling and analysis drastically. AI has proved its expertise in handling customer data, analyzing their purchase pattern, predicting the behavior of visitors, and other data manipulation tasks. Also, it is easy for online retailers to AI solutions and automation in their businesses. It is believed that in coming days this will be the biggest way ecommerce industry will be changed through automation.
- Sustainable customer service: With the increasing role of technology, competition has increased dramatically and with the increase in competition, customer service has become an invincible need of businesses. According to a survey, on an average 73%, customers prefer brands which avail good support. Now talking about customer support, it has been noticed that users prefer having human interaction for a quality However, employing human resource for the same can be expensive for entrepreneurs. With the advent of AI delivering interactive customer support has become easy and budget friendly. Use of conversational chatbots has been utilized by different companies all across the globe.
- High-end security: It is believed that in the coming years AI will help ecommerce entrepreneurs to gain their customers loyalty by providing them prevention again online fraud activities. Apart from this, Artificial Intelligence will also assist in fetching more precise behavioral predictions and in fastening the checkout process. According to a report, 13% buyers accepted that security is their primary reason behind abandoning a cart. With the help of Artificial Intelligence entrepreneurs will be able to avail high-end security followed by peace of mind to its users. It’ll also be able to share the inconsistencies in purchase behavior and will also assist in mitigating fraud transactions.
- Beyond meeting the needs: Data plays a crucial role in the growth of ecommerce businesses and undoubtedly the online retail industry is rich with data. However, not everyone is able to utilize the same to its full extent. This is where Artificial Intelligence plays the role. It can track and collect every bit of data related to customer’s order history, predictive analytics, and purchase frequency to identify purchase patterns and on the basis of same estimating when they might wish to order next. With the help these, the seller can schedule a notification email to increase the chances of generating sales.
The advent of AI in ecommerce industry will entirely change the way trading used to happen. It won’t just provide ease in shopping, but will also ensure security and better revenue generation. However, it is important for entrepreneurs to accordingly judge their exact requirement and get it implemented religiously.