Transforming the Future of Online Shopping

When someone mentions “artificial intelligence,” your mind might jump to scenes from movies like Steven Spielberg’s A.I. Artificial Intelligence (2001), the sci-fi thriller Ex Machina, or the 1982 cult classic Blade Runner.

However, in the realm of ecommerce, AI is less about human-like robots and more about the advanced learning technologies and algorithms that form its backbone.

AI helps today’s online retailers enhance customer experiences on and off their ecommerce websites by utilising collected business and customer data to make informed decisions and accurately predict trends.

Let’s explore some of the ways AI and related technologies are advancing the ecommerce industry, from enhancing customer interactions to optimising business processes.

Advances in Technology and Ecommerce

From digital transformation and software-as-a-service to virtual reality and artificial intelligence, technology continues to redefine the possibilities of ecommerce.

With rapid technological advancements, there’s always something new vying for online retailers’ attention. The challenge isn’t finding new and innovative tools—it’s identifying the best opportunities for your ecommerce business.

AI Is Bringing Change to the Ecommerce Industry

Artificial intelligence isn’t just a novel technology adopted for its “cool factor.” Implementing AI has the potential to impact various business functions across your organisation.

To understand its potential impact, it’s helpful to grasp the components of artificial intelligence.

AI is a broad term encompassing data mining, natural language processing, and machine learning.

• Data mining involves gathering both current and historical data to inform predictions.
  


• Natural language processing (NLP) focuses on human-computer interaction and how computers interpret natural human language.
  
• Machine learning uses algorithms to apply past experiences or examples to solve problems.
  
• Deep learning involves layering algorithms to gain a deeper understanding of data.

In recent years, AI technology has matured, becoming a powerful tool to boosts

Advantages of Implementing Artificial Intelligence in Ecommerce

Amazon has long recognised the advantages of artificial intelligence and related technologies. The ecommerce giant leverages machine learning to enhance product selection, user experience, and logistics optimisation.

A recent report from McKinsey & Company and the Retail Industry Leaders Association identified seven imperatives for rethinking retail in 2021, all of which can be supported by various AI-driven technologies.

More targeted marketing and advertising.

Personalisation is a top priority for retailers, yet only 15% report having fully implemented it across all channels. Stand out by delivering highly personalised messages and engaging in one-to-one conversations with your customers.

Advances in AI and machine learning have enabled sophisticated personalisation techniques to tailor content to individual users. By analysing big data from purchase histories and other customer interactions, you can pinpoint what your customers truly desire and deliver messages that resonate most effectively.

How to Implement Artificial Intelligence in Ecommerce

It’s always tempting to dive into new and exciting technologies, but having a roadmap is crucial to avoid wasting time and money on false starts.

• Create a Strategy
  Start by developing a clear strategy that outlines the path to your AI goals. This shouldn’t be left solely to a newly hired AI expert, CIO, or CTO. Think carefully about what you want to achieve with AI. Take a practical approach, and start small—you can build on your successes over time.
  
• Identify Relevant Use Cases
  Focus on narrow use cases that align with your overall corporate strategy. The most successful AI applications lie at the intersection of business objectives, data differentiation, and available AI models. Prioritise revenue-generating opportunities where you have a data advantage and proven AI technology can be applied.
  
• Leverage Third-Party Expertise
  Even if you have some AI knowledge, expert assistance is invaluable. Engage a specialised team on a project or part-time basis to help build a strategic AI roadmap. Third-party experts can also assist in bringing your minimum viable product (MVP) to life.
  
• Build a Full-Scale Solution Once you’re confident in your team’s work, proceed to build the full-scale solution. Expect some iterations before it meets your expectations. As your team gains experience with AI, you’ll start to see greater benefits from the projects you implement.



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