How Is Artificial Intelligence And Voice Commerce Changing The Ecommerce Industry?

Having an Ecommerce website or mobile application is not enough to get more business these days. The industry pioneers are leveraging new technologies to suit their customer needs using artificial intelligence and voice technology. In this article, we can look at how the Ecommerce industry is taking advantage of these technologies to create more revenue.

What is Artificial Intelligence?

In simple words, artificial intelligence is a program that performs tasks that requires human intelligence. That is, thinking and acting rationally like a human. So it’s a human brain that can be scaled up many times to solve problems in a faster, efficient way, without the cost of human error.

How Can AI Technology Provide Solutions for Ecommerce?

Artificial Intelligence can make quick decisions by processing, analyzing, and predicting the outcome, which helps the business optimize, automate, and solve problems to meet their end goal. According to market research conducted by Tractica, there is a forecast that annual worldwide AI revenue will grow from $643.7 Million in 2016 to $36.8 Billion by 2025.

Here are some ways AI is ruling the modern ECommerce industry

1. Chatbots for customer service: They can instantly answer customer’s queries and provide solutions without the customer going through all the hassles that regular customer care would take. It’s a faster, simpler, and cost-efficient solution for eCommerce.
2. Smart ads for marketing services: Rather than providing a generalized ad based on the customer’s need, AI learns customer behavior and provides predictive suggestions to the customer.
3. Inventory management for logistics and maintenance: AI helps business-owners make crucial decisions based on customer data by planning, processing, and predicting. This allows businesses to stock the required product until delivering the product to the right customers.
4. Customer profiling for a personalized experience: AI provides a personalized experience to users through customer profiling with extensive data about customer behavior, choices, buying patterns, demography, etc. With such profiling, the application can easily target their ideal customer for better sales.

What is Voice Commerce?

Voice commerce is the Ecommerce innovation that allows users to search and buy products by voice. This way, the user can do their everyday shopping without typing or swiping. If it sounds too futuristic, it’s not. Alexa, Google Assistant, Siri are assisting thousands of people in voice shopping now as you are reading this article.

Even though there are few limitations like trust, data privacy, language, etc., in the process, it would evolve into a better shape in the coming years.

How Can Voice Assistance Technology Provide An Ecommerce Solution?

Voice assistant is used by more than 30% of US customers who have used to look for product information & purchases, and it is estimated that voice shopping is estimated to reach $40 Billion in the U.S. by 2022. There is an increasing trend of usage by younger users between the ages of 18-25.

Why Is It Preferred Though?

1. Personalized shopping experience: It’s like shopping with a friend who knows the best products in the market and gets a better deal too.
2. Reduces screen interaction: The customer can buy or research a product while doing something else. Hence customers won’t feel overwhelmed or exhausted by scrolling and researching.
3. Easy to get feedback: It reduces friction by reducing the time required to type out a review. This, in turn, helps businesses to run better.
4. Repeat Customer ratio: It is most likely repeat orders from the same Ecommerce platform like buying milk and groceries
5. Natural language: Voice shopping supports a human-centered approach where the customer directs their request in their general speech flow, like How much does this product cost? Get me the best deal! How to reach XYZ location?

Both AI and Voice commerce have changed how business functions affect the customer experience, but it comes with a cost. Our private data is being used to make such effective technologies. And there’s no going back from these mobile commerce solutions. The only way to move forward is to embrace these technologies and ethically use customer’s data.

As highlighted in this article, artificial intelligence and voice commerce in Ecommerce is playing a leading role in driving innovative solutions and customer experiences. If you are feeling far from reality then it is worthwhile to partner with 2hats Logic that enables you to improve your Ecommerce business to match the market demands.