How can AI/machine learning be used in ecommerce?

Artificial intelligence in business


In terms of business and Artificial Intelligence, probably the first thing we think about are the tech giants such as Google, Facebook or Microsoft.

Although the position of these companies in their domain in the use and development of new methods of AI is evident, there are many basic methods and knowledge that any company, even small ones, can start using to get the most out of their data.


Now, it is important to make a distinction, since there are business areas dedicated to extracting value from data, areas such as Business Intelligence and Data Analysis (or Data Science, or Data Mining) focus precisely on that, and have already existed for years.


The main difference between these areas and Machine Learning is that, while those areas analyze data to deliver forecasts or graphs as a report, Machine Learning processes data with a predefined business objective to make automated business decisions.


While a data analysis allows you to know your results and make forecasts for the management of a business, a Machine Learning algorithm allows you to automate a process and make it part of the system, or even use that automated intelligence to improve your product or service.


According to the world’s leading research and advisory company, Gartner, it was predicted that by 2020, 85% of interactions between costumers and retailers will happen without human interaction.


For many companies that wish to remain relevant in the industry, innovation is the answer. With artificial intelligence being one of the leading innovations in the industry there is no surprise that this technology is rapidly taking over the ecommerce industry. Below you will find three ways how Artificial Intelligence can be used in ecommerce.


  • Personalized recommendations


Personalized recommendations can be enhanced artificial intelligence by choosing products that are specifically for the customer. This can be done by analysing the travel data and lodging location of a consumer to determine their needs. It can also anticipate the consumers’ needs before they even know they want it. This can be done by analysing their age and style online. Amazon incorporated this method into their company and increased their sales by 29%.


  • Voice Commands

Voice commands has become a recent popular form of technology. There many voice- activated assistants that are used in homes such as Google Home, Apple Homepod, Amazon echo and not forgetting the famous Siri.

 This type of technology is in North Face, where customers can get help from the pods find their clothing. These pods also reply and ask questions to humans giving a similar human interaction in stores.

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