April 29, 2020

The Evolution of AI in eCommerce and What to Expect in 2020

Our rapidly changing world has already revealed the might of Artificial Intelligence in lots of spheres and eCommerce businesses in particular when we got into the global lockdown. It made the hot topic of AI and the countless opportunities it unleashes even more burning. The experts forecast that 85% of customer interactions will already be managed without a human in 2020, but the global spread of COVID 19 made the world rely on technology even more. 

In addition to the businesses, which were evolving, and incorporating AI technologies, people and businesses, which stayed indoors, started to search for new ways to work and develop in the conditions of the innovative digital economy. 

The crisis will for sure pass, however, the consequences and opportunities it revealed will stay. The development of artificial intelligence is the jet fuel for an eCommerce industry of contemporaneity. It is not only capable to alter the business model of many brands but to change completely the current scenario of the eCommerce, raising the marketing standards, and forming a personalized customer experience through big data analysis. This creates a unique approach that is more efficient than any human being is. 


The sphere of eCommerce is going to gross 700 billion USD by 2022. The usage of AI in eCommerce paves the road to the easy to use, safe and profitable online platforms. Let’s look at this closely.

How the evolution of AI is reshaping the eCommerce sphere

It’s no brainer that AI offers smart and innovative solutions and the application of artificial intelligence in e Commerce adds multiple valuable features and elements to the online platforms. Brands eagerly implement such innovations in their continuous competition for clients and as a result, the breakthroughs reshape the eCommerce industry to a great extent. 

When just emerging, businesses online were focused on providing the cutting edge UX to their clients. Those who managed to get a simple and intuitive design got most of the customers. 

With artificial intelligence growth and expansion, the users got more high-tech experiences; they received not only new sites and innovative apps but chatbots along with voice assistants. More than that, the smart solutions empowered with AI became capable to analyze data sets, identify patterns, and create a more personalized experience than any human being can. No wonder that at present AI has become a great hit in eCommerce.


What are the benefits that AI offers to the eCommerce industry

Visual Search

It can by right be called the most exciting trend, which was introduced recently. Now the users can search exactly what they need with just a few clicks. The picture can be useful for the search of the products brand, better quality, another size, or color. So, in fact, AI facilitates the visual search.

Personalized Advice

Artificial Intelligence helps to track what a user has sought for and purchased earlier, identifies his preferences, and provides free recommendations in the forms of pop-ups or text accordingly. Thus, the individual receives a customized touch experience. After ordering a Smartphone, for instance, the customer will later receive advice as to the accessories he may buy to match his gadget. As a result, the brand increases its RoI on marketing and gets more leads, which become customers.

Voice Assistance

With the appearance of Voice Assistants, shopping has become much more enjoyable for the users. It not only makes the interaction easier, relieving the individual from the necessity to type when it’s not convenient but can enhance UX and engagement in real-time. AI can prompt better-personalized recommendations based on accurate analyses of consumer behavior.

Automated Description of Products

The product image is good, but it’s not enough if it does not have a proper description. However, the ever-growing lists of products are difficult to describe up to date manually and AI comes to rescue. Now it facilitates content creation through the automatic writing of the detailed and precise descriptions taking the information from manufacturer's sites and combining it with the most relevant up-to-date details about the product found on the internet. 

The advantages of using AI are the possibility to get multiple details in a short time, place the descriptions only with the most demanding details. More than that Artificial Intelligence is able to analyze how effective the text is, alter it if needed, and add dynamic details to match the interests of a certain buyer.

Intelligent Searches

At times, the customers may want something, but fail to know exactly what it is. Conversion of a search term into sales is now possible through AI-powered searches due to the usage of the information AI knows about t the user. Thus a client gets relevant search results and possibly some other items he may want.

AI combined with IoT

In the modern digital world, the IoT infrastructure grows at an exponential rate. There are already wearable devices, connected items, and cars as well as virtual assistants. Combined with AI they can provide plenty of info about the user to the eCommerce entity: his health and heart rate, driving and shopping habits,  his smart fridge contents, etc. All these details can tell the volume a client may buy: wellness and food products, items for the vehicle, entertainment options, whatever.

Automation of warehouses

In the e commerce  AI has gradually stretched out from sites to warehouses.  AI-powered robots live there, load, pack, and prepare stock items to ship round the clock without coffee breaks. 

Due to smart robots the accuracy is improved, human injuries are minimized, labor costs decreased and losses from damaged stock brought to bottom.

Cybersecurity 

Cybersecurity and data safety is at all times a great concern, but incorporating AI into security solutions, online businesses can save data from cybercriminals. Combined with Deep Learning it can predict intrusion attempts and help protect platforms from threats.

Intelligent Data Management

Data management which is based on AI doesn’t require raw data structuring before utilizing it. The other benefits are the absence of restrictions on how data is handled, its greater flexibility and scalability.

Chatbots

The customers today anticipate lightning-fast reactions, and it’s difficult for a human being to match this expectation. However, AI advancements allow online businesses to integrate chatbots, to simulate dialogues, answer clients’ queries, and handle requests. From a seller’s perspective, this increases customer experience at the same time reducing efforts and costs. Big names, which have successfully introduced chatbots are eBay, Amazon, Starbucks, etc.

How eCommerce companies use AI to drive higher sales and UX

To gain a competitive edge, retailers now need to dive deep into the user’s behavior and purchase history. Marketing and advertising campaigns become more effective due to AI Technology. It has given email marketing a completely new life, making campaigns look more humane, though optimized and targeted for the exact recipient through an appeal to his real interests. 

More than that the messages can be automatically sent at the right moment for the recipient to read them and the further strategy can be altered based on feedback received.

What AI trends 2020 should be considered by businesses online

In 2020 businesses that will manage to embrace AI will definitely witness improvement in sales. The key trends to look at in addition to Visual Search and Increased Personalization are:

Merging of Offline and Online

Under the COVID 19 quarantine, many businesses have realized how important it is to bring a synonymous experience in the offline and online worlds. It even at times seems that eCommerce is the only thing that’s alive. Artificial Intelligence is the answer to the retailers who are in search of the methods and techniques to engage clients with their brands. AI will use the data gathered on various sites to facilitate servicing customers, making recommendations, and adding personalization to every interaction.

Personal Shoppers

People nowadays often lack time and make purchases hurriedly, so they require quick, effective, and smooth experience to save time and money. Personal AI-driven shoppers are what most of the customers will be glad to utilize for the purpose.

Predictive analysis

Registering the emerging trends, which may be missed by humans, AI can alert the traders about them and prompt the changes necessary to product combinations, marketing, messaging, etc., to grow sales. It can by right be considered the key AI market trend 2020.

Final Word

Increases in AI technology have gained momentum as the years went on, and in the current global situation, it is simply inevitable for the eCommerce sphere and for anyone who runs an online store. 

Quick reaction to the changes and implementation of the innovations right away are the key factors to reach and retain customers at present. Artificial Intelligence is the perfect tool to unlock the power of data, set the new standards of customer service, and reveal the potential of online business at its fullest. 

We are sure AI is here to stay and we are ready to consult you as to the ways to tame it and make it an integral part of your online business.

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