3 ways artificial intelligence is transforming e-commerce

3 ways artificial intelligence is transforming e-commerce

3 ways artificial intelligence is transforming e-commerce

In 2015, the Chinese e-commerce market generated an estimated $562 billion in sales, with shopping named as the fastest-growing online activity among Chinese consumers.

Though the rise of e-commerce is hardly a surprise at this point, the global reach and consistent growth in this sector make it one of the most significant global trends.

What makes this all the more notable is that the rapid transition from the brick-and-mortar shops of old is still heavily limited by technology – specifically, the limitations of online product searches, which, especially compared to a conversation with a real world sales associate, return far too many irrelevant and unspecific results to be of reliably convenient use.

Accordingly, what is left is a global phenomenon that has succeeded in profoundly disrupting the traditional shopping experience, but has yet to reach its full potential.

The bright side to this story is that the key to unlocking the next wave of e-commerce disruption has arrived, this time with the advent of artificial intelligence (AI).

Read Also:
How to Use Big Data for Tailored Population Health Management

>See also: How artificial intelligence is driving the next industrial revolution

Much has been said about the implications of AI, particularly for industries reliant upon manual labour, from car manufacturers to surgical clinics.

But consider the potential impact of such technology in the multi-trillion-dollar global e-commerce industry, one that has evolved into an integral feature of the average consumer lifestyle and a common medium across countless verticals.  

The confluence of AI and e-commerce could not only transform the millions of online transactions that occur every day, but also in-store purchase behaviours, already influenced by digital interactions at a rate of 36 cents for every dollar spent in the retail store, or approximately $1.1 trillion total.

Where exactly will this impact be felt? Here are three key implementations of AI that will fundamentally change the face of e-commerce, bringing it many leaps closer to its optimal impact.

Arguably the biggest limitation in the e-commerce industry today is the burden placed on the consumer to choose and then fine-tune a keyword that accurately identifies or describes the product they want.

Read Also:
Can big data catch the bad guys?

If they choose right, the respective search engine’s algorithms’ will fish out relevant results. If not, they will have to iterate with the keyword trial and error until they find what they are looking for. More often than not, this does not go as planned.

The scenario usually plays out something like this: a shopper inputs “smartphone android” into the search bar. While a human representative would either understand the meaning or probe for more details, the current digital results are far from promising (try it on some of your favorite e-commerce engines and see). The result is often pages upon pages of smartwatches, phones, cases and other android devices.

This is because current search engines typically work by retrieving results based on matching keywords in a search query to keywords in product titles and description, without factoring in the greater context. By design, search engine algorithms adhere to specificity, a characteristic typically absent in everyday vernacular.

Read Also:
Governed Insight: The Power of MDM and Analytics

 



HR & Workforce Analytics Summit 2017 San Francisco

19
Jun
2017
HR & Workforce Analytics Summit 2017 San Francisco

$200 off with code DATA200

Read Also:
See How This Startup Uses Data to Always Stay on Trend

M.I.E. SUMMIT BERLIN 2017

20
Jun
2017
M.I.E. SUMMIT BERLIN 2017

15% off with code 7databe

Read Also:
Henri Eliot: Is big data a governance issue?

Sentiment Analysis Symposium

27
Jun
2017
Sentiment Analysis Symposium

15% off with code 7WDATA

Read Also:
Potent Trio: Big Data, Hadoop, and Finance Analytics

Data Analytics and Behavioural Science Applied to Retail and Consumer Markets

28
Jun
2017
Data Analytics and Behavioural Science Applied to Retail and Consumer Markets

15% off with code 7WDATA

Read Also:
How big data is having a 'mind-blowing' impact on medicine

AI, Machine Learning and Sentiment Analysis Applied to Finance

28
Jun
2017
AI, Machine Learning and Sentiment Analysis Applied to Finance

15% off with code 7WDATA

Read Also:
Top databases in 2017: Trends for SQL, NoSQL, Big Data, Fast Data

Leave a Reply

Your email address will not be published. Required fields are marked *