Artificial intelligence(AI) is becoming(if not already) an essential tool for utilizing and optimizing consumer data in the e-commerce industry, and is immensely instrumental to the landscape of digital marketing and its’ future.
On the verge of becoming a billion dollar industry, AI is projected to grow upwards to $5 billion by 2022. The AI market is driven by various factors such as: an enhanced user based experience and personalization, more efficiency and productivity, an increased need for advanced surveillance and monitoring online and offline (physical stores), and maintaining precise measures with respects to cost factors in inventory and in the supply chain infrastructure. These undeniable factors in AI are leading the charge globally, making for a very innovative and competitive e-commerce industry.
Within the AI industry are various segments that makeup the increased demand for the service. These segments include, type specific AI, technology, solution, service, mobility and strategic placement, applications, and area of location. Each segment of AI serves great purpose, essentially using its capabilities to positively affect the bottomline of online and mobile purchases.
In relation to digital marketing, AI plays a vital role in terms of personalization. The personalization aspect, vastly improves the shopping experience, enabling digital marketers to collect data to better understand each individual consumer. Companies like AgilOne, SiteZeus, and Sentient have a firm grasp on how AI can expand personalization and analyze the data for digital marketing. The personalization technology utilized from these companies, integrates the consumer data derived from various digital and physical sources, then further analyzes that data to predict consumer behavior, which in turn, allows digital marketers to fully engage with their customers, while matching their customers’ preferential needs.
And big name retail companies are already incorporating AI personalization. Companies from around the world such as Facebook, Target, Pinterest and Pizza Hut, all see how the AI automation, combined with personalization, allows for a more frictionless shopping experience; making it much easier for consumers to spend more time browsing and finding items that they actually want.
Being that e-commerce holds the largest market share in relation to AI, there are many other innovative techniques for attracting customers and converting them into sales. Image recognition, retail virtual bots, and AI smart-generated content all show how bright the future of AI can become, with the right compatibility.
With AI being the key component to bringing consumers more authentic personalization, this trend will only further continue. By 2020, 85% of consumer interaction in e-commerce will be handled by AI; and in that same time frame, 30% of companies will delegate at least one segment of AI to handle their payment processing. With AI personalization clearly the present and future of e-commerce, it’s not a question of should a company utilize its technology, but one of how will a company integrate AI into its business and where does it best suite the company’s needs.