Artificial Intelligence(AI) is the use of computer-based products (software, etc) for the automation of tasks that are commonly performed through human intelligence. Online businesses are very profitable these days due to huge customer appreciation. In 2018, US shoppers spent $126 billion on online shopping. Online businesses are selling mostly through social media platforms, due to the ability of social media platforms to shape the shopping trends these days. 87% of shoppers say that social media plays a vital role in their shopping decision. Artificial intelligence is helping many online businesses in the automation of their operations and to improve their customer experience regarding product selection, order placement, and customer verification. That is why 20% of businesses in the US are planning to use AI enterprise-wide in their businesses.
Regulatory compliance and fraud detection:
According to a report of Australian Competition and Consumer Commission online businesses lost around $ 2 million in 2019 due to online shopping scams. Due to this immense increase in the online shopping frauds, the businesses are forced to comply with regional and international KYC compliances. The solution to this high magnitude problem is the use of AI-based identity verification services of the reputed and certified institutions to meet compliance with ID verification regulations. These AI-based ID verification services add an extra layer of security to the system, hence the fraudsters and identity thieves are highlighted at the very point where they try to buy something from a website with a stolen identity or stolen credit card credentials. Also, many online merchants of age-restricted goods are using the AI-based age verification services to verify the age of the customer, hence reducing the risk of serving underage customers and paying heavy fines afterward.
Improved customer experience:
Artificial intelligence is being widely used by online businesses in creating a comfortable and flexible shopping experience for their customers. Chatbots are used for helping the customers in their shopping as if they were visiting a physical store.
Due to an increasing trend in online shopping, many physical businesses are also using online platforms to deliver services and goods to customers. For instance, many multinational hotels are using AI-based chatbots, websites and apps to assist their customers in room booking, etc. Levi’s store is also using chatbots to help customers in the selection of a best-suited and best-fitted piece of clothing for themselves according to their size and color, etc.
Data collection and processing:
The AI-based software is used to collect customer data and analyze it for finding customer buying trends, the regional buying trends, etc. Data management tools give predictions based on customer preferences and these predictions are used by the management to make better decisions and improve their services/products according to customer preference.
These are just a few advantages of AI which are commonly used by businesses around the world. AI has been reshaping the business models of most of the industries in e-commerce, let it be an online retailer, cryptocurrency facilitator, a hotel, a travel agency or a financial institution serving online.