Artificial Intelligence (AI) in eCommerce: Use Cases and Benefits
Even though Artificial Intelligence (AI) was first introduced in 1956, it was always an elusive technology until recently. Gartner reports that AI technology grew by 270% in the last four years. This tremendous technology growth, supported by the reduction in hardware costs and cloud-based models, has reduced the overall cost of implementing AI technology. As a result, small businesses can hire AI software development services and improve their eCommerce platforms drastically.
AI in eCommerce Fuels Growth – Statistics and Facts
A recent Statista study shows that more than 51% of businesses are actively working on deploying AI in their eCommerce solutions. Also, 29.6% of companies are starting to find a way to include AI, while 11.1% of businesses are already using a little bit of AI.
Following are some of the statistics that you can’t ignore:
- 86% of decision-makers consider AI as a mainstream technology - PwC reports
- 52% of business leaders agree that AI helps in increasing employee productivity - PwC survey
- 75% of IT leaders know that AI enhances security - Statista
- 57% of leaders believe that AI is beneficial in forecasting market conditions - PwC survey
- 40% of consumers prefer chatbots to know about offers and deals – Ubisend report
- 1 in 5 consumers like purchasing using chatbots - Ubisend report
These numbers indicate that AI will only help eCommerce businesses realize their full potential. Google’s ranking will also change as Google has invested £400 million in DeepMind, an AI company. When Google’s search engine algorithm changes, it will certainly set the course for eCommerce growth in the near future.
AI in eCommerce Use Cases
Recent studies on AI influence show that 95% of customer interactions will happen only using AI technologies by 2025. Also, AI use in eCommerce is projected to reach $36.8 billion in 2025. AI ML development services are now rising, enabling eCommerce stores to adopt AI in their business at a much faster pace.
AI is already being employed in different ways in eCommerce stores. The following use cases show how eCommerce technology has dramatically improved in recent times:
Big Data Analytics
eCommerce stores deal with large volumes of digital assets. Essential metrics related to sales, inventory, procurement, logistics, marketing, and production are derived based on the eCommerce data. Big data analytics in eCommerce helps in making data-driven decisions. Machine Learning (ML) technologies greatly help categorize and forecast information using big data analytics. Data visualization using BI tools helps decision-makers make business forecasts and understand the business path in real time.
eCommerce businesses are puzzled by fake reviews, fake transactions, and fake Ids. ML can help these businesses identify threat patterns so that risk mitigation can be vastly improved. It will also greatly benefit the brand image as businesses can quickly take action against negative fake reviews, blogs, posts, and tweets.
Customer Engagement And Retargeting
eCommerce businesses are always looking for new ways to reach leads. Converting cold and warm leads into potential customers is the primary goal of marketing and sales departments. AI tools can significantly help digital marketing reach cold leads more effectively.
Retargeting customers sitting in the sales funnel is now made possible by AI. The most efficient way to reach customers is through personalized messaging, and AI helps achieve that. Implementing personalization using AI and identifying retargeting requirements through ML can greatly help eCommerce businesses to engage their customers and create loyal users.
Conversational AI Chatbots
Many eCommerce stores approach AI ML development companies to create conversational AI chatbots. Now, you can’t find a credible eCommerce store without a virtual agent always available to answer customer queries. When website visitors can get quick answers to their questions, they spend more time on the eCommerce website. ML technologies greatly help in natural language processing (NLP), allowing customers to shop using text input.
The AI chatbots mimic human interactions by understanding the conversation’s tone, intention, and context. The chatbots can also answer queries within a few seconds by searching for the appropriate answer in the vast database. When ML-trained chatbots are used, it greatly reduces the need for a human agent.
Now eCommerce businesses are deploying AI chatbots on various platforms such as Facebook, WhatsApp, Kik and more to create additional Points of Sale (PoS), providing more opportunities for customers to purchase from other messaging apps.
To enable customers to get their answers quickly, contextual searching is employed in eCommerce websites. They can get more accurate search results based on trending topics, the latest season items, the week’s hot picks, etc. The auto-fill search phrases and suggestions are more meaningful and appropriate when AI is used. As a result, the customer will be more likely to purchase with the latest and trending recommendations.
Searching Beyond Text Using Visuals and Voice
The eCommerce industry is making new strides in searching with AI implementation. Hands-free and screen-free searches are gaining popularity. Now, consumers can use their smart phone’s inbuilt voice assistants for shopping and eCommerce stores should get in on this trend. Customers can upload an image they like and get search results based on something they want and are willing to buy. Visual-based shopping is now possible with shoppable videos and live-streaming shopping. By making it easier for consumers to get to the products they may like, they will be interested in buying them, mainly because of the excitement.
Augmented Reality-Based Shopping
Augmented reality is the most trending technology in fashion and interior eCommerce stores. Before even purchasing the product, the consumers can get to know how it looks on them or how they can fit the furniture in their homes. It brings a personalized shopping experience, and 47% of customers will be willing to pay more for eCommerce stores with AR features.
Benefits of Using AI in eCommerce
A recent study by Gartner shows that organizations that use AI can increase customer satisfaction by 25% by 2023. For eCommerce stores, maximizing customer satisfaction is the primary goal. AI offers numerous benefits for eCommerce stores:
- Enhance features, functionality, and performance of products
- Helps make data-driven business decisions
- Create new products based on customer interests
- Optimize internal business operations
- Automate tasks and reduce stress on employees while improving productivity
- Purse new markets and new audience
- Capture and apply the knowledge that was previously unknown and hidden in big data
- Optimize external processes such as sales and marketing
Partnering with the right service provider for AI software development services is crucial to achieving success with AI investment. Apptread has a specialized approach to increasing customer satisfaction through rigorous testing of software products. Talk to our experts to ensure that your AI investment gives you the best returns.