Artificial Intelligence in eCommerce has changed the way vendors sell and customers shop. Though AI is a widespread technology that’s revolutionizing every industry, the effects have been most meaningful in the retail sector. Research suggests that the global AI in the eCommerce market can reach up to $36.8 billion by 2025.
But are these online shopping apps really accurate and useful? Let’s discuss the applications of AI in eCommerce, along with its pros and cons.
What Are AI Shopping Apps?
In a nutshell, AI shopping apps are eCommerce platforms with AI capabilities. These best online shopping apps are backed by artificial intelligence, and they are capable of providing an improved experience to their users. AI in eCommerce has several applications.
Chatbots are one example. These AI-powered programs provide a human-like support experience to customers. Predictive product recommendations and targeted advertising are some other applications. But that’s the surface of what we know as AI shopping apps. AI in eCommerce goes way deeper. The following section discusses the different ways in which AI is changing the eCommerce industry.
How Are AI Apps Revolutionizing E-Commerce?
Artificial Intelligence has changed the way eCommerce apps operate. It has also altered the way eCommerce providers provide customer support and service. Here’s how AI apps are changing the face of retail.
1. Voice Assistants
If you’re still using Google or manually heading to different stores to compare prices, it’s time to change. Voice assistants like Siri and Alexa enable you to shop online without you even touching your phone. All you need to do is say, “Alexa, buy a pair of Adidas Superstar size 8 for me.”That’s it. Your order will be placed.
Voice assistants use AI-powered speech recognition technology. It enables the AI shopping app to understand your voice and perform the actions accordingly.
2. Customer-Centric Product Results
When you shop online, you might come across product recommendations that are foreign and irrelevant. Based on that one might shop online for recommended beauty products along with home items. This could be annoying and can entirely ruin your shopping mood. Artificial intelligence resolves this hurdle.
The best online shopping apps use an algorithm called natural language processing (NLP) to improve your results. When you browse through the store and make purchases, NLP tracks your movements and learns about your preferences and shopping behavior. When you visit the store for the next time, the AI shopping app tailors your results based on your previous behavior. Hence, the app displays relevant results that match your preferences.
3. Chatbots
Of course, chatbots. As discussed, chatbots are one of the most exciting applications of AI. With chatbots in place, online shopping apps can provide 24×7 assistance to their customers without the need for having human agents. Thanks to AI capabilities, these bots are capable of understanding customer queries and providing accurate results. Besides, these bots also help customers to make informed buying decisions, so they don’t just abandon their carts.
4. Personalization
In simple terms, personalization refers to using mass consumer data to provide tailored eCommerce experiences. Several eCommerce studies and surveys have determined that personalization is one of the key factors associated with the customer experience and loyalty. As high as 70% of customers are likely to shop from an AI shopping app that offers a personalized experience.
Artificial intelligence provides eCommerce stores with personalization capabilities. Ecommerce vendors can now offer tailored customer experiences, which results in a higher rate of engagement and conversion.
5. Automation
Many people confuse artificial intelligence with the idea of machines and robots taking over the earth. Sadly, it isn’t a Hollywood movie, and though robots are an application of AI, they make up a very small portion of what AI has to offer.
AI automates various data-related tasks for eCommerce vendors. For example, it uses robust algorithms to help retailers determine what their customers are exactly looking for.
AI algorithms can also be used for dynamic pricing and providing discounts and offers based on market trends. For instance, the store can analyze market trends and competitors to determine the price of certain products to adjust its prices accordingly. The online shopping cart app can also roll out sales and discounts based on events and festive seasons.
Pros and Cons of AI Shopping Apps
Sure, AI has revolutionized the way online retailers offer shopping experiences to their customers. It has also changed the way shoppers do online shopping. But it has some drawbacks too.
Let’s take a quick look at the pros and cons of AI in online shopping.
Pros:
1. Real-Time Analytics: Let’s return to the original question of this post. Are AI apps accurate? Well, the answer is yes to a large extent. These international online shopping apps provide real-time data about customers, which retailers can use to make informed decisions.
2. Improved Customer Experience: As discussed, chatbots have really changed eCommerce. Vendors can now provide 24×7 customer support without hiring extra agents. Not only does this help save cost, but it also takes the customer experience to a whole new level.
3. Cost Reduction: Apart from reducing customer agent costs, AI cuts down marketing expenses, too. With accurate data at your fingertips, you can make your marketing campaigns highly targeted. It further enables you to automate several business processes, thereby helping you reduce costs.
Cons:
1. Cost: Though AI helps you save costs, implementing AI can also be significantly costly. Vendors need to cross-check their expenditure abilities before investing in AI.
2. Lack of Creativity: AI automates a large section of tasks that otherwise require creativity and innovation. This could reduce the overall creativity quotient in your organization.
3. Security: Although AI is secure up to a great extent, there are some loopholes. Therefore, vendors need to be more careful about data theft and security.
Wrapping Up
Now, you don’t need to stick to outdated sales techniques like cold calling and door to door selling to get your business up and running. With innovative technologies like AI, you can automate your online shopping store and provide a superior experience to your customers. At the same time, AI also helps you reduce operational costs and become technologically competent.
