AI in e-commerce: 6 successful stories
According to research, by 2020, AI will begin to use at least 60% of e-commerce representatives. At the same time, 30% of revenue growth in this area will be associated only with AI technologies. Moreover, according to PwC, by 2030, the using of AI will raise world GDP by 14%, which is, approximately $ 15.7 billion.
Data management
AI helps companies track and control customers’ data flows. It saves time for manual sorting and initial analysis. AI can also monitor equipment operation, which reduces the risk of breakdowns, sudden shutdowns, malfunctions and corresponding expenses.
Automatization of manual labor
It allows to speed up business processes and shift attention of employees to more important things for company. For example, AI can send automatic emails, order tickets, check goods on the warehouse, etc.
Analytics
Predictive (and not only) analytics is inevitable. Otherwise, the business will not succeed. You need to study the market as a whole, and competitors, and customers, and your own company. Due to a large amount of data, people spend a lot of time on this.
Here, AI can help. Due to machine learning, the technology is able to analyze huge amounts of information in a short time and make predictions, is not worse than "live".
Qualtrics specialists conducted a study where they collected and analyzed the opinions of 250 global marketing leaders. It was found that 96% of them suggest that in the near future, AI will begin to perform regular research tasks. For example, data cleansing. Also, 63% of respondents think that AI in statistical analysis by 2030 will replace a person completely.
Qualtrics specialists conducted a study where they collected and analyzed the opinions of 250 global marketing leaders. It was found that 96% of them suggest that in the near future, AI will begin to perform regular research tasks. For example, data cleansing. Also, 63% of respondents think that AI in statistical analysis by 2030 will replace a person completely.
Virtual helper
Virtual assistants and consultants are becoming increasingly popular. Facebook experts say that more than 10,000 organizations are already developing chatbots on their own. However, assistants, who can give only simple hints and monosyllabic answers, are replaced by AI.
In addition to more interesting, lively communication, the AI can analyze preferences, purchase history, and customer viewing. Based on this, the virtual assistant is able to give more accurate recommendations, make cross-sells or upsells for sale.
If you don’t even have a bot yet, don’t worry. You can create it for free using the Chatbot Builder service. Use this tool.
In addition to more interesting, lively communication, the AI can analyze preferences, purchase history, and customer viewing. Based on this, the virtual assistant is able to give more accurate recommendations, make cross-sells or upsells for sale.
If you don’t even have a bot yet, don’t worry. You can create it for free using the Chatbot Builder service. Use this tool.
Examples of AI in e-commerce
We decided to consider AI in e-commerce using the example of 6 giant companies whose names you know. This will be not only indicative but also a practical example. After all, you can freely use their service, being in any country.
Amazon
In 2012, Amazon acquired Kiva Systems, now known as Amazon Robotics. It’s easy to guess what this “daughter” is working on. Robots, AI, machine learning, object recognition, and computer vision. All Amazon Robotics products are used at Amazon.
One of the most striking examples of the use of AI in Amazon is recommendation blocks. On all pages of the site, there is a special place where customers are offered goods that the AI selects for them.
Despite the fact that Amazon’s recommendation system (and generally) is not yet perfect, Amazon’s sales grew 34% in the third quarter of 2017. It was then that the company experienced a kind of boom in the development of AI.
Cleaning fake reviews
Amazon has launched a special machine learning algorithm to combat false reviews and reviews. This happened after the company's trial with organizations that paid for posting positive reviews on the retailer’s website in 2015.
AI as a personal stylist
Another interesting Amazon development was in 2017. Project Echo Look is an artificial personal assistant, which was based on machine learning.
The voice assistant is called Alexa and it can help compare one outfit with another using the Style Check data, as well as take a picture or video of the desired image and upload it to social networks.
Providing BaaS Platforms to Business
Amazon is not only engaged in retail, but it also provides its own BaaS platform. AWS is a cloud platform whose central computing service is the Elastic Compute Cloud (EC2) service. Supports 7 different instance families and 38 instance types. In other words, AWS offers customers simultaneous support in 22 regions and 69 zones around the world.
And one more thing
Amazon Web Services is a company’s cloud platform that has implemented the following AI projects:
- Amazon Lex - a chat bot with which you can create interactive interfaces;
- Amazon Polly is a cloud-based text-to-speech service,
- Amazon Recognition - Image Analysis Technology
Another interesting project is Gluon. It was developed in conjunction with Microsoft. In fact, this is an interface for developers who work on training algorithms and models of neural networks.
However, not all Amazon designs have been successful. For example, the AI personnel officer had to be abandoned, because he rated male resumes higher than female ones and offered only those candidates who used typical male verbs in speech. Even if these applicants did not have the necessary skills.
Alibaba
Invests in AI to improve your service and increase profits.
Product Recommendations
E-commerce Brain is Alibaba's personal technology for selecting products. Predictive models are based on information that the AI receives in real-time (which the user watches and puts in the basket), as well as data from all Alibaba systems in general, including AliPay, AutoNavi, Youku and UCWeb.
AI as a designer
Another Alibaba development - a chatbot named Dian Xiaomi - helps platform sellers create and design a virtual storefront so that it attracts people. AI takes into account the purchase history of potential users, the initial data on their geolocation, etc. It also helps sellers by answering simple questions from users and solving their elementary problems.
Smart Supply Chain Platform
AI helps online and offline sellers analyze. It simulates future user requests, offers the most favorable pricing policy and recommends customers the most suitable products (as well as their delivery methods).
By the way, about delivery
70% of deliveries in China (which is about 42 million parcels daily!) Are regulated by the Cainiao AI. It selects the most expeditious delivery options and allows you to shorten transport use by 10%. Because of what, the delivery time becomes less by as much as 30%.
Chatbots
Alibaba virtual assistants have gone too far. The AI there not only processes the initial requests of users, but also solves the problems of people, and also works with all (100%) requests regarding the status of orders. Successfully and, what is extremely important, he independently solves more than half of them.
eBay
In order to successfully compete with Amazon, Ebay acquired startups SalesPredict and Expertmaker, whose specialization is machine learning. Their solutions help buyers compare products at cost, and sellers determine the most favorable pricing policy.
Search by photo
The company also develops in the issues of machine learning and big data, namely it invests in its own eBay Research project, finances the work, research and conferences related to this topic.
In 2017, Image Search and Find It On eBay were introduced. According to the photographs, users searched for and selected products of interest to them on the site. The development is based on deep learning technology, as well as computer vision.
Personal assistant
The eBay virtual assistant - ShopBot - has several distinctive features. Firstly, he works for Facebook Messenger. And secondly, it can search not only by text request or picture but also by voice message.
Rakuten
This large Japanese company uses AI to analyze and predict user requests. The business receives information in real time, which allows you to see which products will be in special demand and segment customers in advance.
Another Rakuten AI example is their own Rakuten Fits Me fashion app. It uses image recognition technology so that users can create the most stylish image for themselves.
Flipkart
An interesting example is the Indian e-commerce site Flipkart. The shopping app, which uses company AI, processes 50% of people's searches. It is this technology, according to Flipkart statistics, that helps the company add 12% more additional products to users' baskets.
Asos
This British giant retailer is creating speech recognition systems to influence the behavior of its customers. The company is also working on image recognition technology to search for pictures in the application. So it will be more convenient for people to compare the desired product with the assortment that is in the store.
Another ASOS project is a mobile virtual assistant named AVA. The bot helps to select various products, based on the preferences of customers: their orders and previously viewed pages.