Artificial intelligence (AI) is no longer the stuff of movies. In fact, the technology is quickly becoming a big part of daily life, whether we know it or not. One place that it is really taking hold is on e-commerce web sites.
“Retailers can leverage AI solutions to get real-time insights, predict customer behavior and take relevant actions,” according to a white paper from EdgeVerve. “In retail, AI has the potential to assess which products sell faster and which don’t based on buying information and purchasing patterns. It can track reviews, comments, and trends on social media to identify upcoming trends, thereby giving retailers a sharper competitive edge.”
Today, for example, some web sites are using visual search capabilities to let consumers upload a picture and find similar products online. The AI technology can search for clues in the image, such as color, shape, size, fabric or brand, and then present options to the consumer. In addition, some retailers are using collaborative filters that present information and products based on the history of what the user has viewed before. In the future, intelligent shopping assistance will be available to help consumers quickly and accurately.
Especially as consumers become more technology savvy, AI will be readily accepted. In fact, 70% of U.S. millennials say they would appreciate a brand or retailer using AI technology to curate the products shown, while 72% believe that eventually brands using AI will be accurate in predicting the products they will want, according to a study from the research firm J. Walter Thompson.
Take a look at the infographic below from Red Stag Fulfillment to see some stats and facts about how e-commerce and AI are evolving. Let us know how you think AI will change the retail space in the comments section below.
— Hailey Lynne McKeefry, Editor in Chief, EBN