Is 2023 the year AI will become part of every retailer’s why?
With Open AI’s launch of the latest iteration of ChatGPT blowing up our LinkedIn feeds and causing speculation among the retail community, while creative types are dreaming up their fantasy brand collaborations with the help of Midjourney’s AI (a chat bot creating images from textual descriptions) – it’s clear that AI (Artificial Intelligence) is once again a trending topic for the ecommerce industry.
But what is AI? And why now, more than ever should retailers start paying attention to it?
Who better to ask than the AI itself? According to ChatGPT, Artificial Intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. “This can include tasks such as understanding natural language, recognising images, making decisions, and solving problems.
“Retailers should pay attention to AI because it can help them improve various aspects of their business, such as:
- Personalisation: AI can help retailers personalise the shopping experience for their customers by recommending products based on their browsing and purchase history.
- Inventory management: AI can assist retailers in predicting demand for products and managing their inventory accordingly, helping to reduce waste and increase efficiency.
- Pricing: AI can help retailers optimise pricing by analysing market trends and competitor data.
- Customer service: AI-powered chatbots can provide 24/7 customer service, helping to improve customer satisfaction and loyalty.
- Fraud detection: AI can help retailers detect and prevent fraudulent transactions, helping to protect their revenue and reputation.
“Overall, retailers that invest in AI can gain a competitive edge by improving their operations and providing a better customer experience.”
Couldn’t have said it better myself, AI.
AI: Causing problems or solving them?
So while the AI might be slightly biased, there is an obvious case for investing in AI to solve problems for both shoppers and brands alike. Unsurprisingly, personalisation was at the top of the list. For a more human perspective on issue, we asked real-life human and AI veteran, Brett Gronow, the founder and chairman of AI-powered personalisation company, Systema AI to weigh in.
“AI should not be seen as an abstract concept designed to subjugate us. In fact, it’s simply a powerful technology designed to augment and enhance possibilities,” said Gronow. “For example, Systema’s suite of personalisation tools was designed to use an autonomous AI to solve complex problems that came to light with the radical growth in e-commerce use during the pandemic.”
We all know genuine personalisation improves the buyer experience, both for the retailer who may be wasting time using manual merchandising methods and for the shopper in finding the right products, quickly. However, unlike traditional personalisation solutions, Systema solves the anonymous customers’ need for personalised e-commerce experiences. These are in fact, the largest cohort of online customers.
With approximately 77 per cent of online shoppers remaining anonymous when shopping online (i.e. no cookies, no logins, etc) and the added pressures of increased privacy regulations making it harder to get first-party data, Systema’s AI is able to read and immediately respond to a shopper’s in-session buying behaviour, servicing the customer’s behavioural genomics and the content that is most interesting to them. Recommendations are scored based on product-related and user behaviour dimensions, like natural language processing in search queries and statistical factors like age and gender to personalise results. The marvel of the AI is that it only continues learning and getting better, optimising with every interaction and delivering more and more ROI for both the brand and end customer.”
Should retailers be worried that AI will put them out of a job?
Gronow says informed action as opposed to inertia is key. “AI won’t make your role redundant, but people using AI will. With rising acquisition costs, inflation and the possibility of a depressed economic climate this year, e-commerce managers and marketers will need to be more considered with their advertising spend and technology budget. Rather than identifying with the fear of the unknown, brands should spend time researching, evaluating and upskilling in genuine AI solutions like Systema that have the potential to reduce operating costs, automate manual tasks and processes, give us back time, and improve our commercial results.”
ChatGPT had a similar response: “Retailers should not be worried that AI will take their jobs, but rather that it will change the nature of the jobs they do. AI can automate certain tasks and make some jobs obsolete, but it can also create new jobs and opportunities.”
So, will 2023 be the year you gave AI a try?
In a year where economic headwinds are driving uncertainty, adopting AI-driven tools in your tech stack and marketing mix will only increase efficiencies and decrease overhead costs to help retailers stay competitive, and grow their revenue base.
To learn more about how Systema AI can help you create e-commerce experiences that convert anonymous shoppers, visit our website.
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