Why Artificial intelligence (AI) Is The Future Of Ecommerce
Artificial intelligence has developed a lot in the last couple of years. With the advent of pieces of technology such as data warehousing, algorithmic development within the front-end world, and more, AI isn’t just science fiction anymore but, in fact, is moving towards business spheres which aren’t completely related to technology, such as the food industry.
Another big implementation and a considerably big part of the AI industry is definitely personalization, a branch of CRO (Conversion Rates Optimisation), and web development that applies machine learning to a series of rendering scripts to personalize and tailor every landing page to the user’s preference. With this being said, let’s analyze why AI is the future of eCommerce.
1. Web Personalization: Made Simple
The power of web personalization combines backend and front end development, as well as neural networks and machine learning. In today’s industry, web personalization is normally referred to like one (or multiple) tools that are processing big data, cookies and data gathered via email surveys to then optimize pages, catalogs, or even internal search engines accordingly to the user’s preferences.
The “personalization” process then happens with the usage of particular Node.js (normally) scripts that are applying the guidelines given by the Python tool to the page, changing the order of products, content boxes, or more. The fact that this is done automatically and within the second timeframe confirms to us the fact that artificial intelligence is proven to have embraced the whole front and backend web development world.
2. The Market Value
Although very startup-driven, the world of AI applied to eCommerce has been moving to big eCommerce retailers since 2010. Zara was (even in a very embryonic form) the first online portal to use a web personalization algorithm in its early site’s development.
By analyzing what the world of personalization is in 2019, we can see how startups have been approached by top players like Apple, Amazon, and more, who are, in fact, outsourcing their personalization and AI-features to them.
When a new piece of technology approaches the market, it’s important to state its early value, just to understand whether if it’s going to become an industry standard or if it’s going to stay what’s known as a “startup bubble”.
For now, given the amount of money that has been raised towards machine learning-based features within eCommerce businesses, we can say that there are serious and tangible signals of the matter becoming even bigger than what it already is.
3. The Mobile Variable
Mobile has peaked, in 2018, as 58% of the entire internet’s traffic. This, of course, has moved a lot of developers towards new technological applications, such as Ai and general machine learning/R-based features, in order to automate certain features on native mobile applications for big eCommerce companies such as Bupa or ASOS. The UK, which has recently been elected as the European technological powerhouse, has seen many app developers opening specific divisions that are relying on creating automated features for specific native applications (in Angular).
4. To Conclude
Artificial intelligence applies to a variety of complex business spheres and it’s definitely very likely to grow in the near future. Whether if desktop or mobile-based, we can safely say that AI will dominate eCommerce before 2025.
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