Artificial intelligence will be playing a big part in your online shopping escapades for the holidays.
That's because roughly 81% of online retailers are tapping AI to boost their sales in time for the holiday rush. According to VentureBeat, these businesses have increased their artificial intelligence budgets to do just that.
The businesses in question are classified as small to medium enterprises who might not be competitive with other online shopping giants like Amazon.
With artificial intelligence, the businesses are tapping into its power to help manage their supply chain (which is already stretched thin due to the pandemic), protect against ecommerce fraud, and even increase their overall sales.
A few of the retailers are even predicting sales growths of up to 40% with the help of artificial intelligence.
This isn't the first time, however, that businesses have tapped into the power of AI to help with their e-commerce efforts.
Back in June, retail giant Walmart introduced an artificial intelligence algorithm which they're claiming was able to offer "smarter" solutions to grocers and grocery-goers.
With its ability to predict consumer behaviors, needs, and wants, the AI can offer people improved grocery substitutes and streamline the entire shopping experience.
Artificial Intelligence Basics In E-Commerce
An analysis by the firm Anodot could help explain how, using the likes of Amazon as an example.
For Amazon, they're using the AI algorithm to largely recommend related products to people who have bought some under a specific category. Say, "people who bought this also bought that," etc.
This is called cross-selling and upselling, which is considered responsible for roughly 35% of Amazon's astronomical revenue figures.
Aside from that, artificial intelligence can also help spot any fraudulent transactions, produce automated product descriptions, and even forecast overall revenues.
Lastly, there's also the idea of "personalizing" a customer's shopping experience with recommendations based on their preferences. That is why one person's Amazon recommendations will largely differ from another's.
Looking Ahead
What was previously discussed is only the tip of the iceberg when it comes to using AI in retail.
In the future, one could expect the age of "conversational" artificial intelligence in stores by way of chatbots and customer support. According to TechWireAsia, shoppers have been increasingly wanting an even more personalized shopping experience, with their concerns being seen and "heard" at the blink of an eye.
Otherwise called "conversational commerce," this application intends to not make online shopping feel like a chore, writes Forbes. And one company is already doing something about it.
A cloud communications tech firm from New Jersey called Vonage recently purchased Jumper.ai, which allows businesses to engage with their customers in a dynamic way.
Instead of people receiving boring, automated text messages and email alerts, the company is using Jumper.ai to keep consumers connected with either a live human agent or an artificial intelligence-powered chatbot.
With this, they say, online shoppers will be able to have a more "conversational" shopping experience that will also help the brand build a loyal following over time.
This article is owned by Tech Times
Written by RJ Pierce
