You could almost go through every scenario in e-commerce, and there are so many different types of AI that are happening around that.
Let’s unravel the complexities and organize our journey through the potential applications of AI in the ecommerce realm.
We will begin by creating a visual structure to provide a clear framework. We’ll separate the AI use cases into two main categories: Backend Operations and Customer Experience.
Within Backend Operations, we will explore four common use case categories: Product Data Preparation, Marketing Activities, and Analytics & Forecasting. These areas focus on optimizing merchant processes and enhancing operational efficiency.
On the other hand, we will delve into two categories that directly impact the customer: Customer Buying Experience and Post-Sale Journey. Here, we’ll explore how AI can transform how customers interact with ecommerce platforms.
With this map of our learning journey in place, let’s begin
Increase Efficiency of Backend Operations
.Ecommerce Data Preparation
- Creating product content: Using AI to generate SEO-optimized product descriptions and content.
- Customized product content for different sales channels: Adjust the existing product content with each channel’s word counts, word choice preferences, or other content specifications automatically and at scale.
- Attribute enrichment: Automatically add product attributes by extracting them from images and text.
- Image generation and transformation: Use generative AI to create a multitude of high-fidelity product images in different scenes while maintaining brand preservation for retail products. Automate image generation for categories, bundles, and collections.
- Brand content generation: banners, blogs, brand & landing pages, and customer stories.
- Product matching and deduplication: AI-accelerated human annotation can help remove product duplicates, merge product variants, fix inconsistencies on product detail pages, and correct errors.
- Localization: Preparing content for international markets – automatic translation, adapting terminology, descriptions, measurements, and images for local cultural context.
- Automating merchandising: Assigning products to the correct category, establishing product associations, establishing search ranking, and discovering brand-new product connections.
- Optimizing inventory management: AI solutions will constantly rebalance demand and supply by automatically analyzing all available data and constraints. Predicting estimated time to arrival and defining safety stock levels.
- Generating demand models: AI makes sales and demands predictions using real-time data, including demographics, weather, the performance of similar items, and online reviews or social media. An AI bot can calculate what to buy, how much, at what price, and when to mark items for sale, even for products with no historical sales data.
- Churn prediction: Monitor and predict churn by analyzing customer sentiment and buying patterns.
- Customer Segmentation: AI-driven systems can analyze customer data to identify patterns, carry out behavioral segmentation, optimize engagement strategies, and achieve specific goals by learning and adapting, resulting in exact and effective customer targeting.
- Competitor monitoring: Implement intelligent tools to monitor competitors and generate alarms & recommendations.
- Customer personas: AI tools use collected psychographic data, demographic and behavior metrics, and qualitative psychological factors in creating more accurate customer personas.
- Hyper-personalized Ads: AI-created advertising that contextualizes the experience to create images and videos showing products in locations and situations a potential customer requests in real time.
- Understanding intent: Use AI to determine where the shopper is in their buying journey and serve up promotions or ads based on that analysis.
- Keywords harvesting: Automatic campaigns can be set to mine keywords, transfer keywords between campaigns, and boost bids depending on peak and off-peak hours.
Revolutionize Customer Experience with AI
Enhance Buying Experience
Increasing Search Relevance: AI-powered search engines use natural language processing (NLP) to process and understand the query. The search engine then uses the meaning to present the best-ranking search results.
Voice Search: Use AI voice-to-text technology to enable voice search using natural language, optimizing for long-tail keywords and providing clear and concise answers to common questions.
Visual Search: using artificial intelligence to enable shoppers to search online based on images instead of text or keywords.
Virtual shopping assistant
Chat GPT-powered chatbots can assist customers with complex queries, suggest products based on their preferences, and even provide customized recommendations.
Dynamic pricing: Using AI also allows you to personalize pricing by adjusting prices and offers based on the current users on your website and how they behave. You can change your prices based on global supply and demand, for example, increasing your prices when your competitors’ stocks are low.
AI Powered Virtual fitting rooms: Deep learning-based system for transferring clothes images from the model to the client in an online simulation.
Intelligent agent negotiation systems: New intelligent agent negotiation systems will match buyers and sellers, facilitate transactions, and provide institutional infrastructure.
AI-based fraud detection and prevention: By analyzing millions of online global transactions, AI-based machine learning can spot irregular and suspicious behavior and transactions.
Virtual Photography and Augmented Reality: Use these new tools to implement product configurators and CPQ
Post purchase support
- AI chatbot for Customer support: Using interactive, AI-powered chatbots to help customers without interacting with a live person or scrolling through endless FAQ pages.
- Optimize order fulfillment: Integrate AI with a company’s order management system to use all the real-time information to make critical decisions about order fulfillment —including sourcing and staffing. Match customers with ideal shipping providers and carriers using advanced algorithms.
- Fake review filtering: Self-learning artificial intelligence is becoming very good at identifying all sorts of fake reviews. It can analyze text patterns, writing styles, and formatting to immediately mark those that seem suspicious.
AI & E-Commerce
This innovative online course focuses on the application of AI in the dynamic world of electronic commerce. Created by industry experts and AI practitioners, this comprehensive program provides participants with the knowledge and skills to leverage AI to its full potential in the ecommerce industry. The course includes an in-depth analysis of AI case studies in ecommerce, enabling participants to gain practical insights from real-world examples. By exploring the benefits of AI in ecommerce, participants will understand how AI can revolutionize customer experiences, optimize sales and marketing strategies, automate inventory management, and personalize product recommendations.