Introduction
Artificial Intelligence (AI) has transformed the e-commerce landscape in ways we could only imagine a few years ago. Its primary purpose in this space is to deliver an unmatched shopping experience in the shortest possible time while also boosting efficiency and profits for businesses. In other words, AI in e-commerce aims to create highly personalised, efficient, and seamless consumer experiences while maximising profitability.
However, for the general public, these advancements often go unnoticed or are viewed as just another feature of the internet or technology. Most people don’t think much about why they receive constant pop-up ads related to their recent searches or why their shopping experience feels so tailored to their preferences. Similarly, personalised virtual shopping assistants or assurances offered by websites and apps are often taken at face value, without deeper consideration of the underlying technology driving them.
In this article, we aim to demystify these technologies, helping you understand how they work and empowering you to make more informed choices about their use in your everyday online interactions.
Personalised Recommendations In Retail and AI
Have you ever noticed your favourite app recommending food or goods you were thinking about buying, even without you explicitly asking for it? This happens when you search for an item multiple times on the app. It’s powered by an AI function known as Personalised Recommendations. The platform uses machine learning algorithms to analyse your preferences, browsing habits, and purchase history to suggest products tailored to your tastes. For instance, platforms like Amazon and Netflix use this technology to curate personalised shopping or content recommendations for users.
Virtual Assistance in Retail and AI
Similarly, if you’ve ever inquired about an order delay or replacement on an app, you’ve likely received a prompt response. But contrary to what it seems, it’s not a human available 24/7 to address your concerns; it’s a chatbot! These AI-driven systems use Natural Language Processing (NLP) to understand and process your queries, analyse the information, and provide relevant responses in real-time. Platforms like Netflix or Zara use such technology to ensure efficient and seamless customer service.
Dynamic Pricing and AI
We’ve all experienced something known as Dynamic Pricing. Have you ever searched for flight tickets online multiple times, only to see the price of the same flight suddenly increase? It might feel like magic, but it’s actually an AI-powered function! AI algorithms analyse factors like demand, competitor pricing, and customer behaviour in real-time to adjust prices dynamically. This helps retailers optimise their revenue while still offering competitive prices to consumers.
Visual Search and Image Recognition Technology
Now, think back to the days before AI in e-commerce, finding clothes or cars matching your favourite stars or role models would have been a real challenge. But today, thanks to Visual Search and Image Recognition Technology, it’s easier than ever. For example, you can take a screenshot of your favourite celebrity’s outfit, and with just one click, find a similar piece almost instantly! AI makes this possible by enabling shoppers to search for products using images instead of keywords. Platforms like Pinterest and Google Lens allow users to upload a photo and discover visually similar items, making shopping quicker, smarter, and more intuitive.
Augmented Reality (AR) and AI
Recently, you might have noticed platforms like IKEA and Myntra offering a unique feature that lets you try on clothes virtually or see how a sofa would look in your favourite corner at home. This is made possible through Augmented Reality (AR) technology. AI-powered AR enables shoppers to visualise products in real-world settings before making a purchase. For example, IKEA’s app enables users to place virtual furniture in their homes, providing a realistic preview of how it would look and fit, thereby enhancing the overall shopping experience.
Conclusion
AI has the potential to completely revolutionise the retail sector. While large-scale research is still needed to further expand its applications in this space, it’s equally important to ensure the democratisation of AI technologies. This means that everyone should have at least a basic understanding of how AI works, enabling them to make informed and thoughtful decisions about its use. By doing so, we can not only harness the full potential of AI but also maximise human resources and creativity in ways that complement these advancements.