How Machine Learning & Artificial Intelligence Implement in E-commerce?

If you have really been up to date about the latest developments in the field of technology, then you would have heard about AI and ML or Artifical Intelligence and Machine Learning. Both these developments have had some significant impact on business operations.  Both these technologies rely on data and interpreting it to find results that help in formulating business strategies. As per Gartner, by 2020, around 80% of customer interactions will be done by AI. 

What are machine learning and artificial intelligence?

• Artificial Intelligence: The basic use of this technology is to analyze the available data and perform tasks as if mimicking humans. 

• Machine Learning: It is a branch of AI and is used to improve performance through experience.  

Both of these technologies work on data. Coming to the use of both these technologies, then they work together. Artificial Intelligence and Machine Learning have permeated different industries, and it continues to do so in the times to come. 

Use of Machine learning and Artificial Intelligence in E-commerce:

In the past few years, we have seen a rise in the e-commerce sector. The rising internet and the use of smartphones have led to an increase in e-commerce businesses. It becomes important for all e-commerce companies to have a more customer-centric approach and provide instant solutions to the customers so that online services become more trustworthy. 

Here is how AI and ML help in enhancing e-commerce business:

1. Customer segmentation- One of the first things that any business must be focusing on is that they should know about the target audience, their preferences, and choices, which makes it easy to project the product and services. ML will help the retailers to run targeted campaigns as per the requirement of the customer and hence help in increasing the business.

2. Optimized pricing- One of the reasons that most people jump on to online portals for shopping is that they get better deals and price. People will also compare the pricing from other websites as well. With the right use of the Machine Learning tool, you can easily readjust the pricing as per the requirement of the customer. Thus boosting your sales. 

3. Better customer support- A good e-commerce website is all about the right customer support. You would have seen chatbots present on most of the websites. The use of these is to help in resolving customer’s queries in minimum time. Thus, ensuring better customer support.

4. Product recommendation- While using an e-commerce website, you would have seen the option of product recommendation. This recommendation comes from the preferences and choices of the customer. You can make use of AI and ML tools to decipher product recommendations.