Understanding Artificial Intelligence’s Impact on The World and Your eCommerce Business
The use of AI has been around for decades, but we continue to see new trends growing in industries like healthcare, cybersecurity, and more recently, eCommerce. AI can use powerful algorithms to predict not only when a cyberattack could happen, but even come up with solutions. Global eCommerce sales are expected to reach almost CHF 30 trillion by 2023. The key is to keep your customers happy and keep your most loyal customers while creating new competition even though the competition is fierce.
This story was first published on Hackernoon.
There is no question that the largest sectors of the business world were left battered during the COVID pandemic. Industries that we rely on the most; like logistics, and healthcare, all of a sudden halted and continue to struggle to keep up with rising demands. As hard as the pandemic proved to be on all of us, there is a silver lining in almost any catastrophe. In this case, the urgent adoption of more artificial intelligence, which has proven to be the unsung hero and the guiding light to a more resilient future. The use of AI has been around for decades, but we continue to see new trends growing in industries like healthcare, cybersecurity, and more recently, eCommerce.
Have you ever made a purchase through Alexa or Google Assistant? That’s powered by voice AI. It is predicted that by 2023, voice assistants will triple to 8 billion. Take a look at some of today’s most popular gadgets. A growing number of items like light bulbs, refrigerators, and door locks can be smart devices known as IoT (the Internet of Things), which describes a connection with a range of objects to the internet. If you can’t already, it won’t be long before you can ask Alexa to preheat the oven or start a load of laundry just by using your voice.
As many countries underwent lockdowns, the demand for virtual doctor visits grew. Telehealth does just this. With so much sensitive medical data being shared through the internet, the demand for tighter cybersecurity practices increased. Now, AI can use powerful algorithms to predict not only when a cyberattack could happen, but even come up with solutions. All this to say that AI is evolving and has made permanent changes to the way we behave as consumers and ultimately, the way we conduct business globally.
Like most people, I started off by creating a few logo designs, and then by using applications, I was able to see how my logo would look on a garment and then on a mannequin. For the first time, I could see something I created come to life, thanks to the many eCommerce applications that make it so easy to create a brand.
I’ve always wanted to start a business or have a secondary activity. Today, I have two business concepts called Boost Mind and Boost Mind Coaching. My third business concept is my eCommerce store, BJPW. I am so grateful that I jumped on the opportunity to use the internet to learn everything that I know now. I am always learning more about the eCommerce industry and I am fascinated by what artificial intelligence has done to create advancements to the shopping experience. I put a lot of time into my website because it has everything to do with the shopper’s first impression.
It’s like a product itself. In eCommerce, the way to create value for your audience (other than the products you sell) should be ease of navigation through your website. It must also have essential applications like collecting email information, multiple ways to contact the owners, and should be able to recommend products based on your customer’s buying history.
Predictions and Trends for AI in eCommerce
Global eCommerce sales are expected to reach almost CHF 30 trillion by 2023. Expect online shopping to increase in popularity, which consequently makes the sellers’ competition even fiercer. How can AI help eCommerce stores stay ahead of the competition? The key is to retain your loyal customers while creating new ones. In such a competitive market, it won’t be enough to only focus on keeping your most loyal customers. AI can help by leveraging CRM (Customer Relationship Management) apps and analyzing consumer data. Strengthening relationships with your customers and providing them with a unique shopping experience will be the secret to increasing sales.
The next most important aspect of your business should be omnichannel selling. This means that the more channels you have to reach your market, the better. Artificial Intelligence is already helping millions of business owners expand their reach by using apps and plugins. My partner loves using Instagram for our business to expand our brand. This leads to more eyes on our products and ultimately more sales.
The best way to maximize your ad budget is by using social media. Social platforms like Facebook and Instagram are great ways to achieve organic reach. The mobile eCommerce industry is predicted to skyrocket, which means eCommerce businesses should be prepared to optimize for the small screen. According to research done by Google, 53% of mobile users abandon sites that take more than 3 seconds to load. With almost half of people abandoning slow-loading sites, some social media platforms have found a way around this problem. For example, Instagram uses AI technology to recommend products to its’ users directly on the app.
IG Shopping is a set of features. Users can make purchases directly from the app without having to take them to an external site. In the world of eCommerce, there will be more ways to collect and analyze data from consumers, making it easier to predict customer behavior. Unlike physical stores, eCommerce stores can collect valuable data from customers, which should be leveraged to create the most personalized shopping experience.
AI-based apps and features like chatbots have increased in popularity over the years. Expect chatbots and virtual assistants to get even better and smarter in the future. More advanced versions of these can already fully replace customer support through something called Natural Language Processing (NLP). NLP is a type of AI that helps computers manipulate and interpret human language. This technology is the reason we can talk to Alexa or talk to customer support. It will be interesting to see how smart speakers will shape our buying habits and how eCommerce will respond.
Making the Case for AI in eCommerce
Both AI spending and adoption are picking up fast globally. Investments in artificial intelligence span across every industry, but I am particularly excited to see how AI will change the eCommerce industry forever. According to the most recent study, worldwide spending on AI is predicted to reach CHF 79 billion by 2022. Software will see the largest AI spending, especially towards the creation of AI applications. Artificial Intelligence is a game-changer in a highly competitive environment, especially in industries like retail and finance that deal with customers. Technology will only get better over time, meaning tech like virtual assistants, voice recognition, and product recommendation algorithms will be necessary for many businesses.
We know that AI helps increase sales, increase client retention, and can also bring new clients. Is it possible to one day own a fully automated online business? Possibly, but in the meantime, human intelligence and interaction are still necessary for most industries. I hope you take these predictions and continue to study the trends of your industry. Pretty soon, you will need to apply them to your own sales strategy.