What comes to mind when you hear the term AI? You are probably thinking of Steven Spielberg’s 2001 film by the same name. In the real world, AI is more about machine learning tools and decision-making algorithms than about humanoid machines that set out on a journey to discover their inherent sapience.
Artificial Intelligence as a technology has been around since the mid 1950s. However, it has come to light in recent years because of its ever-increasing number of use cases in everyday life, and advancements in supporting technology like high-speed broadband and high-performance servers.
Practically, every industry is expected to be disrupted by AI in the coming decade. This year alone, the worldwide investment in AI is about $135 billion. Currently, a majority of the funding in AI is directed towards the transportation and healthcare segments.
However, there are applications for AI in the eCommerce industry that are gaining momentum with every passing year.
AI in eCommerce
AI has plenty of incredible applications for the eCommerce industry. One of them is in the form of recommendation engines that predict user behavior and create product recommendations that increase the chances of conversion.
It also increases the frequency of upsells and cross-sells at every touch point by making decisions about what products are likely to be bought by which customer.
AI is also used as a Natural Language Processing or NLP listening tool to identify customer sentiments from omnichannel customer data.
That is, from a large set of textual information such as customer reviews, social media chatter and customer service transcription, AI is able to identify positive, negative and neutral sentiments. This allows the business to come up with countermeasures to mitigate negative sentiments.
Using apps on a platform like Shopify or Wix, you can have easy access to the many capabilities of cutting-edge AI. AI optimizes offers in real-time that lead to better conversion rates. As you scale your business, the offers optimized by your AI engine only get better.
The definition for AI in eCommerce is wide and includes Data Mining, Natural Language Processing and Machine Learning:
Data Mining refers to the collection of customer data from all channels and in all formats.
Natural Language Processing includes the feedback analysis of themes in all textual data generated and collected by your business.
Machine Learning refers to the algorithms and reinforcement learning models that are either given a positive or negative score based on their predictions. They improve with more data and more time.
Your eCommerce website needs all three forms of AI to come together to offer an advanced user experience that anticipates what each customer wants. Fortunately, you don’t have to set up the technological infrastructure required to achieve this. There are SaaS offerings in the market that bring the power of AI to your business.
Common Misconceptions About AI
Practical use cases apart, AI remains a buzzword that has come to mean some forms of automation in the public domain. Any automation with a minor algorithm use is loudly advertised as having AI, so much so that the term, for all intents and purposes, has lost its value.
Secondly, due to the hype that AI has managed to garner, business owners believe that the technology may be too expensive to implement in their own tech stacks. They think that the hardware infrastructure needs to be made from scratch and the software is simply too costly to buy.
Thirdly, eCommerce business owners believe that they are not ready data wise to opt for AI-based products. Even though they have the basic technology in place, they believe that it is insufficient to be integrated with an AI tool that is more advanced than their inhouse software.
Finally, they believe that they need to hire a contingent of developers to manage the AI required to manage their business.
What Is True About AI?
While most automation tools use the term AI as a buzzword, as explained earlier, real AI comes with a machine learning component that makes valuable real-time decisions to cut down the cost at various levels. So ask questions and do your research before investing in any app or software offering.
Even though AI is more expensive than other kinds of products, it generates a higher return on investment proportionate to minor automation solutions. AI is now available in apps on eCommerce platforms that integrate with your business’s existing technology infrastructure.
Current AI-enabled recommendation engines create the right offers for the right customer at the right time. Head-to-head, they have a higher percentage of conversions when compared to automation software that are cheaper but less effective.
And you certainly don’t require a contingent of developers to keep vigil on how the AI works. It is available as a plug and play software that is easy to use and deploy.
An App with an AI Twist
Qubriux, with its AI brain, creates intelligent offers after analyzing omnichannel customer data and predicts the right offer for the right customer. It simply helps accelerate your topline growth by predicting customer behavior.
With Qubriux, our engineers have managed to bottle the genie that is AI to make it accessible to small and medium eCommerce businesses like yours. AI is not anymore just a possibility but a reality for you. With Qubriux, your business can do more than automation, it can be intelligent.