5 Predictions on How AI Will Shape the Future of E-Commerce
E-commerce is a highly competitive and data-driven industry. Online businesses that win must perform a high speed of service, ensure exceptional quality, and maximize convenience for customers at each stage of the buying process, from selecting an item to making a purchase.
Artificial intelligence brings many opportunities for e-commerce companies to better communicate with their customers, analyze large volumes of customer data, and by doing so, increase customer loyalty and satisfaction.
At Forte Group, we’ve worked with dozens of e-commerce companies to build full-cycle software development services that engage and delight customers. The role AI plays in e-commerce is changing rapidly. What’s next for AI in e-commerce? Here are some predictions from our analysts on how they see AI shaping e-commerce development in the near future.
Customer Needs Will Be Met More Precisely with Personalized AI-Powered Shopping Experiences
AI is able to analyze a specific customer’s behavior and predict their further actions, creating offers and selected items that customers are more likely to engage with and purchase. These personalized recommendations, based on the data from previous shopping experiences and browsing habits, encourage buyers to make more purchases of the items they want. This curated, boutique-style approach to online shopping connects a more engaged customer to the brand and helps drive increased sales.
Virtual Buying Assistants Will Make Purchases on Behalf of Customers
Virtual buying assistants not only will notify customers about price drops on products they’re interested in, but they will also take over routine processes like filling out forms and making payments. Many companies are leveraging voice-enabled device assistants already, but soon, it will be commonplace for virtual assistants to make purchases on behalf of a customer.
Chatbots will Transform Customer Service
Chatbots have already begun to replace humans in the process of communication with customers. The technology behind chatbots is constantly improving, to the point where many customers may already not know they’re chatting with a robot. The next iteration of this technology will be realized when chatbots are able to identify the needs of a customer, check the delivery status of the order, and provide an informative response to complex questions.
New, Effective Ways of Utilizing and Analyzing Big Data Will Emerge
With the help of AI, huge volumes of unstructured data in e-commerce will be quickly analyzed, both in real-time and dynamically. This will allow retailers to analyze which products or brands are most popular in specific regions or demographics, create dynamic pricing structures, curated lists of suggested items, and much more. With “big data,” the options for user-centric customization are almost limitless.
Image Recognition Technology Will Drive Sales
Customers will be able to take pictures of items they like anywhere: in a shop window, on a billboard, or while waiting in line at the store—and easily find them in stores or online, even without knowing the brand or product name. This will contribute to a significant increase in e-commerce sales.