Artificial Intelligence – The next wave of e-commerce


Aditya Birla Group’s online ecommerce portal Abof has integrated an AI-based system using visual imagery to personalise the experience for customers, enabling them to view products they are more likely to purchase. The fashion portal claims to have achieved a 95% accuracy rate through this simpler level of image-mapping technology.

eTailing India Thought Corner


Artificial Intelligence – The next wave of e-commerce

The key to unlocking the next wave of e-commerce revolution could be the arrival of artificial intelligence (AI).

According to Sachin Bansal, CEO, Flipkart, artificial intelligence is a key differentiator in the fiercely competitive e-commerce business. The meeting of AI and e-commerce could not only transform the way jillions of online transactions are done, but also change the in-store purchase behaviors which are influenced by digital interactions. Last year Snapdeal acquired Silicon Valley-based startup Reduce Data, a platform that uses artificial intelligence, real-time data and other tools to understand and capture customer’s buying behavior. Similarly Amazon has done big investments in AI technologies such as Alexa platform and consumer devices like Echo and Dot.

Definition: In the terms of computer science, Artificial Intelligence (AI) is a flexible rational thinker that perceives its environment and takes actions that maximize its chance of success at some goal.

In other words, the term “artificial intelligence” is applied when a machine mimics “cognitive” functions that humans associate with other human minds, such as “learning” and “problem solving.” Many tools are used in AI, including versions of search and mathematical optimization, logic and methods based on probability The AI field works upon a great deal of studies including  computer science, mathematics, linguistics and psychology.

Here’s how Artificial Intelligence (AI) will ease online shopping

  • Search issue:

The average search engine algorithms have limitations on understanding a given search query due to lack of contextual knowledge, the practical intelligence and natural language expressions. AI has natural language processing capabilities (NLP) which helps to connect human touch back into a digital experience.

  • Visual Search and Image Recognition:

It does visual search based on the user input image and will bring possible matches according to priority and ranking, back to the user.

  • Voice Powered Search:

It enables the customer to have a real time seamless voice conversation with a virtual shopping assistant on the e-commerce platform.

  • Shopping guide:

Search methodology should be such that brands can understand what customers are looking for online. AI is at the midst of search technology evolution from being passive information retrievers to incorporating features of proactive personal assistance.  For instance, ‘Viv’, an artificial intelligence assistant developed by the creators of Siri handles a number of complex requests by performing a multitude of services. It also connects with third-party merchants to purchase goods and book reservations.

  • Analysis and Improvement:

Doing analysis of information from database created from input data and knowledge amalgamated from many sources, AI searches would not only provide better and more informed responses, but also predict customer behavior for future online purchases.

The advent of machine learning and AI could be disruptive from the conventional way of working but AI is here to stay.