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How Artificial Intelligence Is Revolutionising Ecommerce

How Artificial Intelligence Is Revolutionising Ecommerce

Industry4.0 technologies are disrupting every aspect of our lives

AI revenue is expected to grow from $643.7 Mn in 2016 to $36.8 Bn by 2025

Today, online commerce companies are utilising AI recommendation engines to offer better product offerings to their customers

In this new digital decade, Industry4.0 technologies are disrupting every aspect of our lives, be it education, work or commerce. Artificial Intelligence (AI) offers umpteen opportunities to complement human knowledge and enriches people’s lives and work. Today, AI is being leveraged aggressively in transforming economies and businesses across domains including ecommerce.

According to a new report from Tractica, AI has use cases and applications in almost every industry and promises to change existing business models while simultaneously creating new ones significantly. The market intelligence firm forecasts that annual worldwide AI revenue will grow from $643.7 Mn in 2016 to $36.8 Bn by 2025.

Ecommerce companies are utilising artificial intelligence to offer better customer experience to their users, enhance productivity and optimise their margins. Let’s have a look at how AI is revolutionising the world of online commerce.

Hyper-Personalisation For Superior Customer Experience

Understanding customers is domain agnostic and crucial to the success of any business. Artificial intelligence is helping businesses in offering a nuanced customer journey to their customers by bringing in personalization.

Significant advances in artificial intelligence, deep-learning, algorithmic neural networks and machine learning have ushered in personalisation 2.0 or “hyper-personalisation” where businesses can anticipate a discreet need and offer a tailor-made offer to customers in a proactive way rather than a reactive one. The next level of personalisation should be fortuitous empowering businesses to embrace a proactive and anticipatory science of enhancing customer experience.

Efficient Recommendation Systems To Augment Sales

Today, online commerce companies are utilising artificial intelligence recommendation engines to offer better product offerings/solutions to their customers. Personalised product recommendations help in increasing sales, profitability and revenues. Recommendation engines analyse data and algorithms and segregate relevant products and services for users.

Recommendation systems behave like an automated shop assistant and recommend products/services which might pique the interest of the customer. AI helps ecommerce players to strategize target marketing through email campaigns and website pages.

Integration Of AI In CRM Systems

To ensure that the messaging is spot on and reached the intended target customers, the integration of AI with CRM systems is necessary. Artificial intelligence systems can give CRM the required input by way of natural language learning and voice input to answer customer queries and explore new sales avenues for the sales department. AI-driven CRM systems can improve sales processes significantly by offering data-driven insights.

Competitive Advantage Through Usage Of Assortment Intelligence

Customer demands are compelling e-commerce companies to revisit their pricing strategies. Retention of customers is as significant as getting new customers. Online businesses, therefore, are employing assortment intelligence to gather actionable insights into their competitors’ product offerings and tweak pricing accordingly.

Optimisation Of Inventory Management

By analysing historical data and producing data trends, artificial intelligence can help businesses in making the right choices when it comes to maintaining inventories efficiently. AI-powered inventory management systems can augment productivity and help in inventory optimisation.

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

Author

Santhosh Reddy

Community
Cofounder & MD at ShakeDeal

Santhosh is the cofounder & MD at ShakeDeal. He is a technology consultant & a technical manager with rich experience in building exceptional solutions using various technologies.

https://inc42.com/resources/unlocking-insurance-excellence-through-digital-in-2020/
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