Artificial Intelligence in E-commerce: Changing the Online Trading Landscape
The artificial intelligence revolution is becoming a reality. AI is rapidly entering new areas of business activities, transforming them significantly, and the e-commerce sector is no exception. In fact, it might be one of the areas that will benefit the most from AI.
Artificial intelligence is currently one of the hottest topics worldwide. The development of AI is progressing at an astonishing rate, as seen when comparing the quality of content generated by AI tools a year ago to what is being created today. For instance, OpenAI, a leading tech company in this field, recently announced a new tool called Sora, which will allow the creation of high-quality video recordings based on text instructions. The capabilities of the new tool as demonstrated by its creators are truly impressive;AI-generated videos from just a few months ago now look almost primitive. And yet, ChatGPT, DALL-E, and MidJourney are just the tip of the iceberg when it comes to AI tools. While these are the most “visible”parts of the new technological revolution to the Average Joe, AI encompasses much more. Without delving too deeply into details, it can be stated that AI will revolutionize numerous industries and transform the job market – both by eliminating some positions and creating new ones that require specialized skills related to AI.
AI in E-commerce: The purchasing process and customer service
The AI revolution will not bypass the e-commerce industry, which is poised to reach a new level thanks to artificial intelligence. In the coming years, we will witness an even broader application of AI in e-commerce. AI-based language models will enable the implementation of advanced search engines that can understand complex user queries, identify typos, and words of similar meaning, allowing for precise product selection from the online store database. Customers will be able to enter detailed and complex search phrases instead of being limited to simple keywords, thus receiving more personalized and relevant results. This will significantly speed up the process of finding interesting products and reduce the need to use additional filters to find appealing items.
Artificial intelligence will also revolutionize interactions between users-customers and e-commerce platforms. Chatbots and virtual assistants, utilizing sophisticated AI language models, will communicate with users in a more natural way, thereby improving the quality of service.
Chatbots will be able to correctly answer more general queries, not just specific, detailed requests. The ability for AI algorithms to analyze individual user preferences, browsing history and past purchases will allow for offering personalized product recommendations, which is already being practiced by platforms like eBay, which even offers product searches based on photos uploaded by users.
AI in E-commerce: More relevant content on online store websites
The use of AI in e-commerce will not be limited to improving customer interaction and the sales process. Content generation tools like ChatGPT will help speed up and partially automate (partially because there will always need to be a person preparing instructions for AI and verifying the accuracy of the generated content) the process of creating product descriptions or blog posts (compliant with SEO requirements). This can be invaluable support, especially in situations where such content needs to be prepared a lot, in a short time, while ensuring it’s not repetitive. Additionally, AI can support these processes when there is a temporary lack of sufficient staff to perform these tasks. Of course, it should be remembered that these tools should help employees in their duties, not completely replace them.
AI in E-commerce: Streamlining warehouse and delivery processes
Artificial intelligence will also change the functioning methods of warehouse centers and fulfillment centers serving the e-commerce sector. Robots, controlled by AI, will accelerate warehouse operations, which will translate into shorter delivery times. In the future, thanks to the development of AI technology, it might be possible to realize same-day deliveries, or even within an hour, using autonomous drones, which will be particularly important in large urban areas. Amazon is already testing such autonomous delivery services in selected cities in the USA.
The development of AI will also improve e-commerce deliveries by changing the method of manufacturing goods. Using 3D printers to create products directly at distribution centers, rather than in distant factories, could shorten the delivery route to the customer. AI algorithms would continuously monitor the demand for specific products online and initiate production at the appropriate time.
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Selected sources:
- https://www.forbes.com/sites/forbestechcouncil/2023/07/19/how-ai-could-impact-last-mile-logistics-in-the-next-five-years/?sh=5405dc613ccc
- https://ecommercedb.com/insights/artificial-intelligence-ai-trends-in-ecommerce-2024/4720