I had just finished watching another power-packed episode of The Crown, one of my favorite shows, on Netflix, when I saw a few movies/serial suggestions for download. Considering that I have a premium account, I chose a couple of them, and then realized, hey, aren’t all of these historical dramas? I was delighted because Netflix is remembering my choice every time I pick my shows and also suggesting similar shows or movies. In addition, it is also suggesting some new shows of the same genre (that I am unaware of) and a few other popular shows. The choice is mine, every time, and Netflix is taking care of my preferences. This is what lies at the core of AI for e-commerce; the machine’s ability to record, analyze, and predict specific user needs. AI has forayed into countless sectors bringing remarkable changes to our everyday lives. the online retail industry, in particular, has been significantly transformed. The acceptance and growth of AI in e-commerce confirms that the shopping experience of the future — both online and in-store — will be dominated by AI tech for years to come. AI offers numerous benefits for both online retailers and consumers; making products more discoverable across the internet, eliminating the need for traditional keyword-specific search and allows social platforms to become a direct path to purchase.
- Customer-centric Search Engines/ Visual Search Engine/Voice Search:
The use of visual content search became popular in 2017 and will be more extensively used in 2018. Earlier the focus was on optimizing the quality of metadata and tagging. The process was manual and the consumer was nothing but a buyer on the other side of the counter. Currently, we have users entering search terms and getting search results, which can be filtered according to their preference. AI for e-commerce ensues that images will be used as data source. A user may upload an image or paste the image URL into the search bar to get related searches. The image will be analyzed by its source, attribute, alt text, caption, other details, and relevant search results will be displayed. AI will improve visual search capabilities by automating image classification and product tagging, and hence ensure greater alignment in search results based on improved attribute identification. Pinterest, Google, and Bing already have come up with visual search capabilities.
- AI Assistants/Chatbots:
According to a research paper published by Gartner in 2017, more than 10% of IT resources in customer-facing projects will be writing scripts for chatbots. Chatbots are becoming increasingly popular for tasks such as responding to customer inquiries and voice commands for day-to-day tasks (all of which was done manually by a human so far). Chatbots can also be used to provide product recommendations through interactions using natural language. Bigger players like eBay created Shopbot that can be accessed through the Facebook messenger, functions as an AI assistant. It helps users find products of according to their preference. and consumers can communicate through text or voice or messages. Users may also upload images from their devices to check the availability of a product or ask for more details. Other successful implementations of AI for e-commerce include Alibaba’s Ali Assistant; a customer service chatbot is capable of processing more than 95% of customer inquiries. Users can place both voice and text queries to the bot for product-related information.
- Localization with a Difference:
Localization is another important aspect of AI for e-commerce. Localization of a brand requires the marketer to understand the market structure, analyze the product to be localized, extract its localizable components, and inferring important attributes. For example, Airbnb’s strong localization strategy has made it possible for users to associate a sense of freedom, trust, and security with the brand. Airbnb displays user profiles in the local language and has added a translate button that allows other users to select their preferred language. The company also offers customer service in local languages and local payment options. Machine translation for a higher focus on localization is nothing new in e-commerce. We have seen websites in local languages, global websites with translation options, and product reviews in regional language. Having a local search engine is what is making the news. Setting up a paid search engine for region-specific e-commerce has multiple benefits; getting meaningful product details and reviews in the local language, being a few among them. Localization of websites or product reviews should also be sensible and realistic. Otherwise, you will end up earning a bad name for awkward machine translation like Snapdeal. The Indian e-retailer Snapdeallaunched its website in a couple of Indian languages a few years ago. However, Snapdeal’s translations seemed as if they had come out of a free machine translation (MT) engine, making a mess of Indian language websites. Bigger brands may work in liaison with local players to create localized web portals and mobile-friendly apps to grab the local market. Pixel Solutionz, a Kolkata-based web development is making waves in the online retail space for its out-of-box offerings and different feel.
- Peer-to-peer Networking:
Online shoppers have arrived at an age when ordering on the go is out, getting products on the go is in. Say, for example, you are having a heart-to-heart chat on the terrace, with your bae, and need a couple of pizzas, badly. So, what do you do? Simple, just post a Gig online or on your phone, and your requirements will be matched you with a driver who’s already going that way. Your stuff will be delivered to your doorstep, and guess what, faster than the fastest pizza delivery service! AI for e-commerce has led to the development of online peer-to-peer delivery services like Roadie that matches people with stuff to send with drivers already headed in the right direction. You may post details and pictures of the item you want to send, Roadie Drivers make offers based on location, price, and availability. Once drivers offer to deliver the Gig, senders are able to review ratings and experience before choosing their Driver. PeerShip is another real-time peer-to-peer delivery service in which users can request their friends (in nearby shopping outlets) to get stuff for them, on the way. Pocket pinch is as low as $1 per item. This means you may request your PeerShip buddy (who’s at the local supermarket) to get groceries for you.
- Virtual Personal Shoppers:
Virtual shopping assistant apps, also known as online shopping assistants, powered by Data Intelligence or a combination of both AI and human elements, rely on a set of machine-learning algorithms, making personalized suggestions and improves the accuracy of search results. These online shopping assistants gather user data to learn about personal habits, individual preferences, shopping habits, and prevalent shopping trends. Virtual shopping assistants provide you with suggestions that improve the online experience, as a whole. Users get personalized suggestions on price suggestions, coupons and discounts, and shopping history, based on their online behavior. Amazon’s Mona, a classic example of virtual shopping assistant, performs better than an in-store personal shopper. It learns about your style, your preferred brands, and your ideal price point, to offer you personalized shopping suggestions and recommendations. AI for e-commerce is here to stay. The year 2018 and the following years will see existing innovations improve, and new developments to emerge. The resultant developments will further transform the future of e-commerce. Get ready for newer surprises in AI and e-commerce in this space.
