Artificial Intelligence in E-Commerce

AI in e-commerce is boosting and bettering in countless ways.  Artificial Intelligence is revolutionizing E-commerce business and is enhancing the entire buy-sell experience for both buyers and sellers. On the other hand, many e-commerce businesses are already using AI to better understand their customers, generate new leads and provide an enhanced customer experience.

Following are the 10 applications of AI in E-commerce.

• Chatbots

Chatbots are used by E-Commerce to improve customer service. It is programmed to interact with the customers in a personalized manner, respond to customer inquiries, provide 24/7 customer support, provide product recommendations and enabling companies to establish a good relationship between AI and customers.

• Image search

Most exciting trend of AI in E-Commerce is a visual search engine. It reads images to identify product names and brands that enable users to discover what they want. A customer can click a picture of what he likes and put it on the search bar. Thus making it easier to find what he didn’t actually know what it called or how he could find it.

• Handling customer data

AI can not only collect abundant data in a structured form but also generate proper insights out of this data. This helps in understanding customers behavior and buying patterns that help in predicting the next buy of the customers.

• Recommendation systems

E-Commerce algorithms can predict the behavior of buyers from past purchases, likings, searches, recently bought products. Based on which E-Commerce websites are able to recommend the products the user is highly interested in. This helps in improving user experience as the users no longer have to spend hours searching the product. It also helps E-Commerce websites to improve their sales.

• Inventory management

Artificial intelligence applications have helped E-commerce in managing the inventory as it allows shop owners to get information about factors driving demand and predicting what future demands are likely to come into the market.

• CRM (Customer Relationship Management)

Artificial intelligence can predict which customers are most likely to buy and how can we effectively engage with them to increase the conversion rate of visitors to customers. Artificial intelligence applications can help in identifying the trends and plan the actions according to the latest trends. With the help of machine learning algorithms, advanced CRM will be improved over time.

• Sales forecasting and improvement

Artificial Intelligence generates and predicts accurate forecast of E-Commerce business by studying historical data and latest trends. This helps the managers in getting better insight into the latest trends in sales in order to improve sales by making strategies well before time.

Conclusion

Artificial Intelligence has helped E-Commerce in providing a better user experience. AI has helped retailers as well as buyers and leveraging exponential hike in their sales.