The Future of Digital Commerce and Artificial Intelligence

The Future of Digital Commerce and Artificial Intelligence

First, it was the advent of the World Wide Web that changed how the world worked. Then with digitalization came eCommerce as businesses around the world established their presence online to reach people beyond borders.

With innovations in technology, digital commerce is rising to the top with an expected grossing of $700 billion by the year 2022. The integration of AI will take it a step further with access to online portals for safe and profitable transactions.

Artificial intelligence will influence the digital market, not just for entrepreneurs but for consumers as well. It will modify how the digital commerce industry operates and revolutionize online shopping.

So, let’s explore some ways AI can be integrated with digital commerce to understand its impact:

Retargeting potential customers

Companies and retailers are known to save customer data for their email lists. But with AI integrating with eCommerce websites, they can use that data to provide personalized offers directly to customers.

Amazon AI e-commerce website retargeting potential customers for digital commerce

Image Source: Amazon

Businesses will monitor the time a consumer spends browsing a particular product in a brick-and-mortar store. Through facial recognition and AI, the related websites can send out offer notifications or SMS announcements for that specific item to the user.

Based on the users’ search history and browsing habits on the site, e-retailers can remarket their products to the users looking for them.

Improving the efficiency of the sales process

With retargeting customers, AI will also enhance the efficiency of sales processes. AI-powered websites can ensure consumers only receive products relevant to their search. It will streamline the processes, improving customer service and raising sales.

E-retailers can integrate AI with Customer Reputation Management systems to deliver a sales notification to a user at a prescheduled time. Instead of the traditional sales strategies of calling up customers or television ads, AI will provide customized sales messages to the user at a predetermined time only for the items they need.

Intelligent searches

eCommerce runs on a query database, and AI will enable websites to help users find what they want even if they don’t know it themselves. The significant difference between AI and traditional search methods is that AI-powered systems understand consumers.

AI uses deep learning to understand consumer behavior the first time they interact with the website. The data collected helps to answer the following questions and improve searches:

  • What does their browsing history say about their needs?
  • What was the last item the user purchased?
  • What does their social media activity suggest they like and dislike?

Intelligent searches can be further divided based on the type of search method:

Image search

AI helps personalize searches for individuals, but it can also help them find what they need with just a picture of the item. Implementation of image recognition software will enable companies to enhance their searches allowing customers to look up products based on shape, size, color, or fabric.

Pinterest’s new Chrome Extension update, for instance, allows users to select an image and request Pinterest to show similar pictures of items via image recognition. Bixby for Samsung devices is another AI assistant that helps Samsung users find items in stores via snapshots.

Samsung smartphone shopping ad for digital commerce

Image Source: Samsung

With the increasing use of platforms like Instagram and Snapchat, AI-powered systems will be indispensable for the eCommerce industry. It will add to the convenience of users who rely on the power of instant image search to make quick and relevant purchases.

Voice assistance

Voice search optimization is essential for digital commerce websites to improve customer service, boost sales, and increase user retention. AI helps sites recognize and understand natural language, refining voice search for online shoppers. Google is one of the best examples to showcase both voice and image search features.

Google AI voice assistance e-commerce optimization for digital commerce

Image Source: Google

Voice assistants in eCommerce increase user engagement with its interactive solutions decreasing the time spent on searches. With better analysis, AI-powered voice assistants will be able to help users find recommended products. It will give online shopping a personal touch.

Automated product descriptions

When shopping online, users depend on reliable product information and customer reviews to make their decision to purchase a product. So, if the details for the item are not mentioned, then visitors move on to other sources, regardless of the quality of the image.

On the other hand, writing descriptions for an ever-growing product catalog is also a hassle. AI can automate the content creation process. It resolves the issue of writing item details for millions of products and optimizes each description for search results.

More than just copying the information from the manufacturer’s site, AI will write precise details using frequently searched keywords. It will scour the internet to find relevant facts about the product in the store and note the most prominent features to optimize search results. For example, it will ensure that people looking for Wi-Fi enabled food processors find precisely that item.

Here are the benefits of AI-powered automated content creation:

  • Multiple descriptions are available in a short time frame.
  • The information is optimized to be user-centric with the most in-demand details.
  • With a routine analysis of the effectiveness of the description, AI can write or edit the descriptions as needed.
  • Each piece of content produced will include item details that are of interest to each potential buyer.
  • AI will determine the price based on the quality of the product to maximize revenue and sales volume.

Virtual shopping assistants

The goal of AI is to make eCommerce websites more user-oriented. Another way it will influence digital commerce is the evolution of virtual buying assistants to improve the customers’ shopping experience.

Whether it’s online shopping or in physical stores, shoppers need help in finding their choice of items and deciding which ones to buy. The virtual shopping assistants will help consumers find what they need in the websites’ inventory. For example, the 3D AR mirror at Sephora that helps visitors try different cosmetics before they buy.

Sephora AR shopping assistant for digital commerce

Image Source: Sephora AR Shopping assistant

Additionally, it will encourage customers to finish a purchase if there is a drop in the price of the item, they had shown interest in. Plus, if directed, the virtual assistant can also buy the product on their behalf.

If integrated within the digital market, it will enhance the customer experience of a website by a margin, and be cost-savvy.

Analyzing big data

Quoble dashboard analyzing big-data for digital commerce

Image Source: Quoble Dashboard

With artificial intelligence analyzing market trends, companies can prepare strategies that boost profits and sales. AI and machine learning can replace traditional techniques to provide a link between structured and unstructured data, identify which products are in demand, and which to put on discount.

AI-powered systems can help digital commerce analyze consumer data, detect insights, and predict future trends to make decisions for the growth of a company.

AI and IoT

Shopify Artificial Intellegnce AI and Internet of Things IoT for digital commerce

Image Source: Shopify

IoT devices, when paired with artificial intelligence and machine learning, will elevate the customer service experience of the digital commerce industry. AI chatbots are one way to go about it. Websites can integrate with AI-powered chatbots to help consumers find what they need. They can address concerns and offer solutions, simultaneously converse with multiple users, and initiate or respond to conversations as required.

On the business side of things, IoT-enabled sensors can help the eCommerce industry monitor and optimize their inventory and productivity of warehouse operations. With real-time data collection and analysis, IoT will create new goals and tasks for administration. It will eliminate factors that concern consumers, such as expiry dates, product availability, batch ID, and more.

Additionally, IoT will reduce the possibility of over-stocking in warehouses. Amazon, for example, uses IoT to automate picking, packing, and other tasks to increase the productivity and effectiveness of the products. It will also notify the administrators in case of product shortage and automatically create an order form.

What is the future of AI and digital commerce?

In a nutshell, AI will do the work that’s repetitive and mundane, but just as essential for running a business. It will help retailers understand their customers and everyday user interactions on a website to give online shopping a more personal touch.

AI will enable targeted marketing of products to customers who are looking for them. Ultimately, it will help the digital commerce market boost sales and increase user retention.

 

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