From science fiction movies to our routine lives, Artificial Intelligence has traversed its path quite quickly. The last decade has seen a tremendous evolution in artificial intelligence and its major subsets, namely Machine Learning and Deep Learning.
Today artificial intelligence technologies are used in almost every possible task that involves a machine or smart gadget. From making friends to ordering groceries, from making investment decisions to paying off monthly bills, from scheduling regular tasks to booking holidays, from shopping apparel to planning wedding destinations, Artificial Intelligence is used almost everywhere.
This has created a huge gap between supply and demand for the AI talent pool. According to a report by the US Bureau of Labor Statistics, the employment for managerial roles in artificial intelligence is anticipated to grow by 5% in the forecast period of ten years from 2019 to 2029, which is faster than the average for other domains.
Fast Facts:
- If you look at the industry growth, the overall AI growth in terms of recruitment is expected to see a massive 74% growth.
- By 2025, there will be around 97 million jobs in Artificial Intelligence.
- The average annual salary of an AI Engineer in the US is around USD 110k
It is clear from the above facts that Artificial Intelligence has a lot of opportunities for professionals who wish to innovate and inspire. To advance your career in this domain, you need to attain an MS in Artificial Intelligence, which will enable you to skyrocket your career and earn lucrative salaries.
Today AI technologies are applicable everywhere. We will discuss the applications of AI in eCommerce in this article.
AI in eCommerce
From in-store premises to virtual stores, the journey of commerce to eCommerce has gone through a digital transformation rapidly. With software-as-a-service, virtual reality, and artificial intelligence techniques, technology is consistently propelling the limits of eCommerce.
Every day you come across something new to try for your business. These solutions or techniques are so cost-effective and efficient that you don’t think before giving them a try.
Advantages of AI in eCommerce
- AI enables more targeted advertisement and marketing
The top priority of most businesses is to provide personalization to their customers. AI enables you to stand out with a one-to-one conversation with customers via chatbots and also more personalized messaging services.
For example, you get messages like ‘Hi Eric, are you planning for a vacation? We have shortlisted some popular destinations.’
By analysis of customer interactions and purchase history, you can know what your customers want and use the deeply personalized techniques of AI to engage your customers.
- Improved Customer Retention
Research by McKinsey on omnichannel personalization states that there is a 10 to 15% improvement in customer retention with the help of omnichannel personalization strategies. The report also states that ROI for personalization will soon outpace that for traditional mass marketing.
- Efficient Sales Process
By collecting data on your customers and automating follow-up abandoned cart inquiries, you can create a more efficient sales process. Simple questions are answered via chatbots, and customers are connected to executives when chatbots can’t handle the issue.
- Seamless Automation
Automation is the present and future. Automation may include anything from shortlisting applicants for recruitment or scheduling emails in a CRM. AI helps you automate repetitive tasks such as low-level support, loyalty discounts, product recommendations, and more.
AI Use Cases in eCommerce
Some of the most popular AI techniques in eCommerce are mentioned below.
- Personalized Product Recommendations
It has now become very easy to collect customer data and process it. You might have realized that you mostly get product recommendations that match your choice. AI enables you to offer personalized product recommendations on the basis of past customer purchases and lookalike customers.
The most common example of product recommendations that you come across in your daily lives is the ‘People You May Know’ section on Facebook or a movie recommendation on Netflix. Also, you get product recommendations based on your purchase history in eCommerce sites such as grocers or apparel stores, such as Myntra, Amazon, Flipkart, etc.
- Customer Segmentation
With AI systems, you can explore highly complex and different options for engaging customers quickly so that you can optimize your performance as more data is available. AI techniques enable you to understand your customers and also identify the latest trends in a better way.
- Pricing Optimization
AI-enabled pricing model enables you to optimize the prices of your products as per the demand and supply of the products. When you get the right data, the AI system can dynamically calculate the minimum discount to be offered on products.
- Sales and Demand Forecasting
It is important to plan an inventory for both historical and real-time data. A report by McKinsey states that it is beneficial to invest in real-time customer analytics so that you can monitor customer demands and make shifts accordingly.
- Smart Logistics
Some machine learning systems power logistics and help you determine transit times, shipment delays, and also demand levels. Smart logistics involves using real-time data through RFID tags and sensors to forecast demand and also for inventory management.
- Enhanced Customer Service
With the help of chatbots and virtual assistants, you can deliver amazing customer support services. Though these systems are not completely self-reliant, they simplify transactions and allow you to focus on more important issues.
Also, these virtual assistants are available round-the-clock that interact with customers instantly at any time.
Also read: Updated Ecommerce SEO Checklist for 2022 Revealed
The Wrap Up
Artificial Intelligence is the new frontrunner in the world of technology. To keep pace with the technology, it is crucial to learn AI techniques and the way it is implemented in respective sectors.
To learn the concepts of AI and advance your career in this domain, you can take up an online training course. A good online training provider offers amazing training with hands-on practice of all important tools and techniques used in Artificial Intelligence.
Enroll Yourself Now!!