Chatbots Are Changing Ecommerce

What once was the stuff of sci-fi is now being deployed everywhere, epitomized by technological innovations in the realm of artificial intelligence, augmented and virtual reality, and machine learning. The best example of how these advancements are affecting ecommerce is the rise of chatbots.

Chatbots mimic how humans think and make decisions. They are automated programs fueled by machine-learning technology that work by answering questions, handling particular requests, and generally simulating people’s conversations. The key thing to remember here is that a chatbot is not a static thing: it learns, adapting to how people behave, trends in their preferences, and what and when they buy.

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Voice recognition technology is crucial to the future of chatbots. Companies pushing the possibilities of the fusion of artificial intelligence with machine learning include NeuraFlash, and even FedEx. The former’s AI chatbot uses natural language processing (NLP) for comprehending text patterns, while FedEx’s Alexa app allows customers to track their package deliveries without even typing anything. Other notable and specialized Ai bots include Mitsuku and RightClick.

That they offer more personalized one-on-one service makes chatbots more important in ecommerce sectors, especially as people continue to switch to online shopping. Companies need to match the increased volume and traffic to new customers, and chatbots may be the only way to do so very soon.

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Currently a senior director at Walmart Labs, Abhishek Gattani is a graduate of the Rensselaer Polytechnic Institute and the founder of companies Cuberon, Big Refunds, and Fireball Solutions. For more on Mr. Gattani’s work, visit this webpage.

Powerful benefits of harnessing machine learning in e-commerce

Machine learning, a branch of artificial intelligence (AI), is a method of data analysis that’s based on the idea that systems can learn from data, identify patterns, and make decisions without much human intervention. This is not another buzzword: machine learning is about making sense of digital data at a much faster rate than humans are capable of. But how do they benefit e-commerce? 

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For starters, machine learning allows for segmentation, personalization, and targeting. E-commerce websites typically suffer a great distance from their customers, compared to face to face interaction. Things like machine learning can tweak the customer experience online to drive sales and increase revenue. 

It can, for instance, be instrumental in providing product recommendations. It can tap into the customer’s specific buying habits, preferred colors or looks, and the type of budget they are playing with. In addition, these high-tech solutions can also prioritize product recommendations that are likely to have bigger sales returns. 

As search is critical to the success of e-commerce businesses, machine learning can vastly improve product search and appear in front of potential customers. Search results became more meaningful and geared toward who really need them. 

It also assists in price optimization and fraud protection. In the former, the technology can change prices to account for factors such as competitors’ offer, demand, time of day, and kind of customer. In the latter, it can process huge volumes of data at rapid speed to prevent fraudulent transactions before happening. 

The robots have arrived, and they’re no longer the stuff of science fiction. It’s important to analyze whether machine learning could become your company’s “now” and serve as a huge asset to e-commerce campaigns and initiatives, rather than pursuing costly and resource-intensive manual processes. 

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Abhishek Gattani is the head of search at Walmart Labs, where he spearheaded the launch of Walmart’s 'Polaris' search engine and e-commerce platform. For similar reads, visit this page.