What is Artificial Intelligence? Artificial Intelligence (AI) is a term for simulated intelligence in machines. These machines are programmed to think like humans and emulate the way a person act. The ability to rationalise and take appropriate actions is a characteristic that AI should possess. AI analyses more and deeper data than humans. The more data you feed it, the more accurate they become. For example, interactions with Microsoft Cortana are all based on deep learning. AI can also be used for healthcare, retail, manufacturing and even sports. A report by Forrester Research predicts that AI-related investments will grow by about 300 percent in 2018, with businesses becoming more competitive by 2020 and gaining $1.2 trillion per year.
Here are 5 things which AI can do for your business:
1. Product Recommendations
Artificial Intelligence provide a better customer experience by improving on product recommendations. AI can analyse vast data sets way more efficiently than a human being. This means that it can identify patterns in information such as similarities between customer, past purchasing behaviour and credit checks. Millions of transactions can be analysed every day and will allow them to create a more personalised experience and intelligent customer engagements. In addition, it helps to drives sales by providing customers with products that they desire and are more likely willingly to purchase.
Machine learning algorithms can change the recommendations based on the stage or channel a customer is shopping one. For example, prioritizing similar products may be used on a product details, while prioritising other complimentary product may be used on the cart and checkout page.
2. Customer Service
Companies understand the importance of customer service, and how much it can affect their company. However, things can go wrong very quickly. For instance, the 2016 Microsoft State of Global Service found that 60 percent of customers completely stopped doing business with companies just because of one poor customer service experience. So how do we resolve this?
Virtual agents, called chatbots, is the answer. They can read and analyse customer data and provide smart and wise insights on how to assist customers efficiently. Furthermore, they use a fusion of machine learning and behavioural science to analyse millions of voice calls and improve customer interactions based on the data. AI-powered customer support and management will definitely result in more satisfied and less frustrated customers, and more productive sales. Chatbots will eventually create a richer experience and be able to engage customers at a much more personal level. Chatbots also give shop the ability to offer 24/7 customer support to visitors while collecting data such as tracking behaviour and immediately providing customised recommendations of products.
3. Predictive Analysis
One of the changes to e-commerce will be how online retailers and B2B companies analyse customer journeys and based on that, make marketing and merchandising decisions. Predictive analysis allows Artificial Intelligence to take over predictions of future behaviours work that was previously assign to an employee.
Predictive analysis use pattern recognition technology to process and detect patterns. Companies often overlook them as they are so large and diverse. Once AI can detect these patterns, programs can be taught to display these findings to merchandisers to act upon.
For example, the analysis will allow companies to see how many digital interactions such as page views or emails sent before a customer make a purchase. It can also recognise customers who were close to purchasing but did not, and may offer discounts to motivate them.
4. Inventory Management
Artificial Intelligence provide companies with information about factors that drive demand. It provides predictive analysis for what future demands are likely to be and what products should be in the market.
The longer a company uses AI, the more it will learn about their customers. Shop owners are able to more accurately predict real-time and future inventory needs for their business.
5. Insights from Big Data
Artificial Intelligence will drive faster business decisions in marketing, product management, and other areas of business. The ability to tidy up and consolidate data is one of the biggest advantage. This process can be expensive and time consuming to perform without the help of the AI, and in some cases not even possible to perform. Combining data from multiple sources to understand customer’s behaviour is one of the benefits of consolidating Big Data. Insights from Big Data are driven by the desire of businesses to have more relevant information for decision making. Another benefit is real-time targeting which has the potential to generate an increase in sales opportunities. Companies have instant access to data at the point when it was created, while leveraging machine learning functionality to plan for the future at the same time.
Finally, Artificial Intelligence help businesses to grow and improve, and satisfy the needs and interests of their visitors and end users. Businesses are able to recommend products or services in an effective manner that is relevant to end users as well as improve their customer service experience. AI is adding value to the marketplace where retailers not only advance their business practices but also free up their time to focus on other important tasks.