How is Artificial Intelligence Changing Ecommerce?

Posted by Sajeel Qureshi on March 14, 2018

App Development, Ecommerce

Artificial Intelligence (AI) once seemed like technology of the future, but it’s now part of our everyday lives. As the internet gets smarter, our expectations grow. We want to be catered to, and AI is the tool that’s trying to meet our high expectations.

No longer are your mobile apps simply enough. 

How does Artificial Intelligence affect ecommerce? In many ways. We’re moving far away from traditional marketing practices, and ecommerce solutions are needed to keep up. By 2020, it’s predicted that 85 percent of a consumer’s relationship with a company will happen without actually interacting with a human.

 

Customer Relationship Management

Since customers won’t be communicating with customer service agents as much, the traditional customer service model needs to change. AI makes customer customization easy.

Considering ecommerce integration may be a good idea for your company. An AI program will gather information about who is likely to buy, what they are likely to buy, and the best ways to effectively engage them. Everybody likes to feel like the message they’re receiving is personalized. Artificial Intelligence encourages marketing to become more focused on the experience for the individual rather than the mass market.

Two large companies who use AI to recommend things to their customers, in turn personalizing their message, are Amazon and Netflix. Once implementing AI, Amazon saw a 29 percent increase in sales and Netflix recommendations are clicked on 75 percent of the time.

 

The Internet of Things

Artificial Intelligence isn’t only limited to your computer or smartphone. Household items are now connected to the internet, from your watch to your refrigerator. This is resulting in an increase of app development and a need for ecommerce customization.

With the emergence of products such as the Google Home and Alexa, we can connect to the internet whenever and wherever. These products are completely changing the way that consumers interact with companies.

Consumers use these products for multiple reasons: for the news, information, music, the weather, sports scores, and the list goes on. Anything you can possibly need is available with a simple, “Okay Google.”

A study conducted by Chatbots Magazine found that 74 percent of users use the product at least once a day, and 80 percent recognize that the product has changed their daily lives. The study also showed that users are highly satisfied with the product and are likely to recommend the product to a friend. This shows that the internet of things is growing, and businesses need to accommodate these products.

An example of a company that’s doing this is Walmart. Google Assistant will use the consumer’s purchase history to remind them to reorder items, and then the order is placed through Walmart.

 

Visual and Voice Search

One way that AI has made the internet smarter is with visual and voice search. No longer does the internet only understand words.

If a user uploads an image, AI can analyze the photo and understand what it is. Becoming more common is voice search. This can be done on many different products. It makes searching much easier for the user who doesn’t like to type. AI understands voice commands and can effectively answer them.


Stay on Top of the Trends

Web developers are now heading in the direction of innovation and Artificial Intelligence. At Computan, we can work closely with you to develop Alexa tasks and Google Home apps that will help your business take its marketing strategy to the next level. Want to know more? Just get in touch.

outsource web development team