We live in a world where consumer attention span is getting shorter and shorter: 40 percent of people abandon a website that takes more than three seconds to load, and the average shopping cart is abandoned more than 68 percent of the time. Software platforms that drive ecommerce websites are creating visual search capabilities which allow consumers to upload an image and find similar/complementary products. The offline to online experience requires minimal steps to shop and purchase, providing a sense of autonomy to the consumer. Brands are creating more interactive shopping experiences to provide product recommendations based on natural conversation and cognitive data derived from AI.
Artificial Intelligence is poised to disrupt the entire eCommerce industry. An interesting convergence is taking place; one that will have enormous implications in the way retailers sell their products and services and the way consumers buy them. Artificial Intelligence capabilities and applications are attempting to solve real-world issues that eCommerce industry are facing. How Artificial Intelligence in e-commerce can play an important and game changing role, moving beyond customer segmentation to help them achieve the best possible results? The visual Search engine is one of the most exciting trends of Artificial Intelligence in eCommerce.
Customer behaviour and the development of new technology are inextricably linked, and no technology is poised to impact our daily lives more than artificial intelligence (AI). AI is not a single technology but a convergence of statistical models, algorithms and approaches that make software'smart', whereby it starts to mimic human thinking processes. AI is already present in our digital lives, powering everything from dynamic product pricing on Amazon to song recommendations on Spotify – but we are still only at the dawn of witnessing its power. Perhaps the most impactful uses of AI will be in eCommerce – an area of immense growth in its own right. We are starting to see applications of AI via cognitive technology, a simulation of human thought processes, to respond to natural human language.
It was probably the HAL 9000 from the movie 2001: A Space Odyssey, that introduced the concept of AIs to the general public. But that was almost 40 years ago, and examining the more recent times, we have to look no further than in our own pockets to find the AIs that paved the way for the current hype: smartphones' digital assistants. Sure, there has been things like Cleverbot around earlier, but nothing has been as widely spread as these digital assistants. The main difference between a chatbot and a digital assistant is that former responds (be default) only to written queries, and the latter is capable to understand (at least to some extend) more natural, spoken queries. Things like voice activated searches and speech recognition softwares have been around for quite some time, but these digital assistants take the concept a step further by engaging in dialogue, performing tasks such as booking flights or setting up location based reminders, and they can even tell you a joke if you ask one.
Machine Learning is now on top of the Gartner hype cycle, and almost everyone in the world of digital marketing or e-Commerce talks about it or, at least, has heard about it. But although this term is discussed quite often, only a few do really know what it is or what it can do for them. Even less are aware about its limits. Within this article, we want to shed light on this dark through introducing you to the concept of machine learning, showing its application in online shops and comparing it to Operational Intelligence and Prescriptive Analysis for a better understanding. Basically, Machine Learning is a part of Artificial Intelligence (AI) that generates knowledge from experiences, i.e. historical data.