Artificial intelligence (AI) is a science that deals with building intelligent machines and algorithms that can think and respond like a human (that is learning according to human). Artificial intelligence has filled the digital lacuna and summoned reality into utopia. Undoubtedly it has filled every walk of life from airport to home automation and e-commerce is no new story for its ink. It won’t be necromancy to add that not only Artificial intelligence is simplifying the E-commerce but also providing unbelievable new horizon for its growth. With every new artificial add on ads to new possibility and a wow factor to E-commerce let us look few of the Artificial intelligence, which is changing the E-commerce spectrum.
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1) Image recognition and visual search engine:
What if you like your friend’s shoes and wish to carry the same pair, now the searches with chaotic surmise are thing of past. Just have your phone camera on your adored pair of shoes and E-commerce search engine will lend you to the same or alike looking pair of shoes. Is this amaze you, the data supporting this will surely aghast you that is:
1) The image recognition market will grow to $25.65 billion by 2019.
2) For clothing, 85% of respondents put more importance on visual information than text information.
3) The Global Visual Search Market is estimated to surpass $14,727m by 2023.
4) Pinterest monthly visual searches increase 140 percent in a year, from 250 million to 600 million.
It will be a pictorial view to note when you will know that you are chatting to a robot every time you put a query in E-commerce site. Well by using artificial intelligence algorithm robot can update itself in what will satisfy your query with at most proficiency. Some of the relevant features are as follows:
1) The chatbot market was valued at $703 million in 2016, expected to grow by $1.34 billion in 2024.
2) 35% of consumers want to see more companies using chatbots.
3) $4.5 Billion is expected to be invested in enterprise intelligent assistants by 2021.
4) Chatbots can save up to 30% in customer support costs.
3) Automated product description: Since inception one e-commerce process which is completely resistant to automation:
The writing and description of the compelling product in the company’s style, voice, and tone. This kind of writing has prior always required a manual approach, by which copywriters lackadaisical compose one description at a time. That comes out to be an expensive and time-consuming proposition for an industry that often relies on daily deals and competitive pricing. Certainly, artificial intelligence is an elixir that will save a company from this huddle with its algorithm.
Some of the facts supporting an automated product description are:
1)Warehouse automation technology reached $1.9 billion in 2016 and are expected to reach $22.4 billion in 2021.
2) Pick-to-Light systems can improve pick rate productivity by 30-50%.
3) Walking and manually picking orders can account for more than 50% of the time associated with picking.
4) Automated Storage and Retrieval Systems have the potential to increase order accuracy levels to above 99.99%.
4) Artificial intelligence in digital marketing:
Artificial intelligence can add on its contribution by predicting the customer of its behavior, reducing the load time by using AMP, in delivering the personalized experience to the user, in scaling up content marketing and lot more pieces of stuff. Today’s marketing has been suzerainty by digital marketing and a few of the facts supporting this point are as followed:
1) AI could prevent 86% of cyber-attacks and security threats.
2) 72% of business leaders say AI can enable humans to concentrate on more meaningful work.
3) AI will boost profitability by 38% and generate $14 trillion of additional revenue by 2035.
4) When AI is present, 49% of consumers are willing to shop more frequently while 34% will spend more money.
5) Augment reality:
What if you can try clothes online that your heartbeat for, or you can see how that showpiece fits at your dining table, well this reverie is possible by Augment reality. Shopping at E-commerce will be customer friendly and can smooth up the user experiences using this kind of technology. Let us come together with data to support this statement.
1) The current value of the AR market stands at $3.5 billion.
2) By 2020, there should be 1 billion augmented reality users.
3) 67% of media planners and buyers want AR/VR ads in digital marketing campaigns.
4) Out of those 4.6 million companies listed in AngelList; 1,684 companies are under the category of augmented reality startups
6) Supply chain automation:
By automating the supply chain with AI a firm will be able to generate more profit, scalability, less causality, the speed at work and above all its cost driven at an initial level of investment. What is a tiresome process manually can be done by AI in the flip of eyes? Some of the statistics are as followed:
1) Spending on digital transformation could reach nearly $1.2 trillion this year.
2) Inventory is accurate just 63% of the time, on average.
3) E-commerce is the main reason cited for UPS’s 2.3% year-over-year increase in package volume.
4) Amazon reported that shipping costs increased to $21.7 billion in 2017, from just 11.5 billion in 2015.
7) Recommendation engine:
Well, you might have seen frequent buy, and customer also buy these products with every single purchase you make online, this AI technology is called recommendation engine and help in enhancing customer user experience. Some of the relevant points are:
1) Worth $4414.8 Million by 2022.
2) 75% of what people are watching on Netflix comes from recommendations.
3) 35% of the purchases on Amazon are the result of their recommender system.
4) Cross-selling and category-penetration techniques increase sales by 20% and profits by 30%.
Artificial intelligence has made online shopping more of the user-friendly and profit-driven for retailer and E-commerce holder. By using these AI tools and technology one can easily drive to success and walk with the latest trends upfront and path to the success ladder.