Artificial intelligence can add value to the eCommerce customer experience, such as content production, product discovery, and personalization, based on an agency expert.
“So far, the important focus of AI use has been to help produce a more personalized experience for shoppers online,” says Khaled Matar, Associate Director of eCommerce at PHD Singapore. “However, the technology is being deployed to impact different regions of eCommerce today, for example content creation, search creation and targeting consumers with a chance to buy.”
Artificial intelligence is particularly useful in the drive for personalization, Matar believes. Retailers that have implemented personalization strategies see earnings gains of 6-10%, a rate two to three times faster than other retailers, according to a report by Boston Consulting Group (BCG).
Matar cites outdoor apparel firm North Face as just one company getting it directly. North Face partnered with IBM’s Watson to customize its internet shopping experience by implementing artificial intelligence.
“IBM’s Watson creates a psychoanalytic profile of consumer information in less than a second, followed by questions regarding where, when, and for what activities customers will use their attire. Next, the AI provides personalized suggestions, ranked from ‘High Match’ into ‘Low Match’. This creates a far more optimized experience for shoppers who don’t have to scroll through thousands of items to discover the right one,” he clarifies.
Creating applicable content for tens of thousands of goods requires budget and time from companies. AI is now helping solve it by automating the content creation process, especially in China. Alibaba recently launched an AI tool that could produce around 20,000 lines of content a second, allowing individuals to focus more energy on”richly innovative work” such as video or infographics.
“This enables merchants on Tmall and Taobao to generate product information without the need for human intervention,” Matar writes.
“According to Alibaba, the research instrument analyzes ‘countless present samples’ on Alibaba’s online platforms and utilizes deep learning models and natural language processing technology to produce content.”