When the word artificial intelligence or AI comes into discussion, the first thing that comes to mind is an evolving technology that tries to simulate human intelligence using machines.  But when AI comes to e-commerce, we will probably think about AI algorithms analyzing customer browsing and purchase history to provide recommended products matching the customer’s interest. It’s way less about human-robotics and more about understanding techs and algorithms. AI in e-commerce can guide online retailers to deliver an improved client experience. But how? Perhaps this will be done by using compiled business and client information.

Let’s get into some of the potential ways through which AI is taking the e-commerce industry to the next level, from enhancing customer interactions to streamlining business processes. 

Understanding AI in E-commerce Business

From digital transformation and software-as-a-service SaaS to virtual reality to AI, technology keeps on extending the potential of e-commerce to greater heights. However, with new potential advancements in technology, online shopkeepers always need to innovate and be creative. 

Despite working with a traditional approach, trying something new will never give you a loss. The real task is identifying the best opportunities for your e-commerce business using AI.

Benefits of AI in E-commerce

Many multinational technology firms like Amazon have identified the benefits of using AI. Moreover, different e-commerce brands are using other technologies besides AI like machine learning (ML), to boost the performance of product selection and user experience.

The following are the potential benefits of using AI in e-commerce: 

Increase in Targeted Ads & Promotion

Customer-centric approach is a top priority, according to a survey report on retailers. But out of the total, only 15% reported that they have fully executed personalization across channels. Gain a competitive edge over competitors with a tailored approach and direct meetings with clients. 

More Powerful Customer Retention

However, the above point can help you in increasing customer retention. From the recent research study, it is indicated there’s a 10 to 15% increase in revenue and retention rate. 

Thus the report sheds light on how ROI for tailoring specific choices will instantly outnumber conventional marketing.  

Artificial Automation

The major objective of automation is to achieve a task with minimum human involvement. For instance, scheduling emails in a CRM to automate tasks or using advanced tech to get a hand in recruitment. 

However, in the scenario of future e-commerce trends, some of the most discussed technologies are chatbots and machine learning. Thus plays a vital part in automating the recurring tasks that keep your online store functioning. With AI, you can add automation to anything you want. 

Disadvantages of AI in E-commerce

Higher Cost

Using AI in e-commerce might require a substantial investment at the start. This cost will lie in the form of infrastructure, talent, and maintenance. For small businesses, this can be a hurdle to jump in. 

AI solutions may not always result in a positive return on investment. Cash flow for e-commerce management is one of the basics of financial success. So make sure to heavily review the ROI of any solution before applying it. 

Data Security and Privacy

AI demands accessibility to the highest volumes of customer data. In such a situation, privacy becomes a major challenge. Perhaps, customers raise security concerns about sharing their personal information. 

However, their personal data is only collected and analyzed from a business perspective. E-commerce companies that use AI ensure that their customer information is highly secured. 

Absence of Human Involvement

Though AI in e-commerce provides a tailored customer experience, some clients may prefer more human involvement than algorithms. 

AI algorithms might not be able to offer the same level of support and experience as human customer service agents. So this gives rise to customer dissatisfaction. 

So, in order to prevent this dissatisfaction, there should be a balance maintained for using AI in the e-commerce business. Hence this is the only way to ensure a positive client experience and create a good reputation. 

Cyber Attacks

Another major drawback of AI systems is that they are susceptible to potential cyber-attacks and other malware threats. 

E-commerce businesses that use AI must ensure that their systems are well-equipped with strong encryption credentials. Thus making sure that the customer data is secured. Additionally, it requires good monitoring and investment in security steps. 

How is AI applied in e-commerce?

Jumping into new, exciting new techs is always a triggering aspect. But you’ll want to have a roadmap before going into a new choice. This is meant to ensure that you don’t waste time and resources on failures.

Craft a Plan

All it begins with a plan. Your designed roadmap will guide you towards the path you need to take from ordinary to AI level. Really think for a minute, about what you want to achieve using AI. Take this practically. And start with a small initiative. 

Support your Plan with Use Cases

Yes, you heard it right! The most successful AI use cases exist at the point where corporate goals, data differentiations, and AI approaches collide with one another. 

On the contrary, we would recommend you focus on generating profits when you have an informational advantage in the context of AI in e-commerce. And leave the rest to third-party providers.

Outsource Third-party Skills

Even if you consider yourself a “tough guy”, you will have to accept the potential expertise of third-party providers. This is because they have decades of experience satisfying the demands of clients like you. 

Partnering yourself with an amazing team on a project will give you a hand in building a strategic AI plan. These companies can also play a vital role in bringing your idea to life.

Create Long-term Solutions

After that you’ve built trust in your team on what has been created, it’s time to create large-scale solutions. At this point, you’ve to stay calm because at the start it will take some time to work like you expected. 

By that time, you and your team members will adjust to working in the AI environment. We guarantee that you will begin noticing more revenues from the projects than before. 

Final Word

Today you recognize AI as an emerging technology but tomorrow it will be considered as something like a movie sequel. If you’re looking for a better team to deliver the best possible shopping experience on your ecommerce platform then go no further. Integrated IT Solutions is right at your service. 

Create and customizable eCommerce store with our all-in-one platform from scratch.