Artificial intelligence is a technology that many people still liken to something from a futuristic movie from days gone by. While to the uninitiated, the words artificial intelligence may conjure up images of humanoid robots, the reality is that AI is already all around and widely adopted throughout society.
Almost everyone has some kind of contact with artificial intelligence on a daily basis. From using the face recognition function to unlock your cell phone to asking Alexa to play your favorite song. So, whether they know it or not, most consumers are already interacting with artificial intelligence and enjoying its benefits every day.
As so many people only have a vague understanding of what artificial intelligence is, it is little surprise to know that its potential goes unrecognized by the public at large. But, one area where the power of artificial intelligence is undoubtedly getting the attention it deserves is the eCommerce industry.
Why eCommerce Needs AI
In the past few years, the eCommerce industry has evolved at an unprecedented rate. Online shopping in the United States reached an eye-watering $1.7 trillion in the two years from the start of the pandemic. This represents a 55 percent increase in online spending.
It is no secret that eCommerce was one of the only sectors that benefitted from the pandemic. But, long after bricks and mortar stores have re-opened, eCommerce stores are predicted to continue turning over more revenue than pre-pandemic. It is anticipated that online shoppers in the US will spend $1 trillion this year alone.
Considering that the industry appears to be booming, it is easy to think that maybe eCommerce stores do not need any extra help to turn over a profit. But while there seem to be plenty of shoppers online ready and waiting to part with their cash, the competition to attract these customers is incredibly tough.
According to Internet Retailing, during the first four months of the Covid lockdown, the number of new eCommerce businesses launched surged. It is estimated that 85,000 businesses either set up their own online stores or joined online marketplaces. This means that competition between e-retailers is fierce.
To cut through all the noise and get their businesses noticed, online retailers need to work hard to capture the attention of potential customers. To get noticed, they need the right tools to make this happen. While advertising campaigns are one way to attract the attention of consumers, artificial intelligence offers a host of additional possibilities.
The use of artificial intelligence in daily life continues to increase, offering convenient solutions along the way. But for eCommerce retailers, artificial intelligence will be used to enhance the shopping experience of users on their sites.
Ultimately the use of artificial intelligence by online retailers will help them to increase their sales further and improve the user experience of visitors to their sites.
Marketers are increasingly focused on the customer journey and the customer experience. Artificial intelligence provides a way to tap into the customer journey further and to create an enhanced experience for every customer.
Uses of Artificial Intelligence in eCommerce
While it is obvious why online retailers need to use artificial intelligence, how they use it is important. The extent to which artificial intelligence can be used in eCommerce is vast. The potential for eCommerce businesses to benefit from artificial intelligence right now is already significant, and this will only increase further as …….