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Jose Duarte discusses how artificial intelligence is changing the retail space

One of the most revolutionary technologies to stay is artificial intelligence (AI). The large marketplaces have already incorporated it and its users begin to know its benefits. Jose Duarte, an AI expert and entrepreneur from Costa Rica, understands the major role AI now has in commerce and details how the technology continues to transform the retail ecosystem.

AI is the discipline within Computer Science or Engineering that deals with the design of intelligent systems, that is, systems with the ability to perform functions associated with human intelligence, such as learning, understanding, adapting, reasoning, perceiving and interacting by mimicking intelligent human behavior. An increasing percentage of total retail purchases are derived from the online channel. “The current consumer is getting used to this channel every day, and of course the new generations don’t conceive of a shopping experience without it,” explains Duarte. This is why online companies are looking for new ways to continue to beat their own brands and improve the performance of their business.

In addition, the consumer is imposing what is known as iCommerce, instant commerce, wanting to buy from anywhere and any situation, here and now, moving from social networks to voice assistants. And of course, without forgetting the security in the transactions and the customization of the shopping experience. That is why it is not surprising that it is one of the sectors in which artificial intelligence has developed at the service of companies, providing important functionalities that would be unthinkable without the help of artificial intelligence.

AI enables personalized experiences to be offered by analyzing customer consumption patterns. To do this, it is essential to know consumers more and better, as this allows to segment the target audience and, therefore, design exclusive campaigns and messages for each client according to their habits and preferences. Ultimately, artificial intelligence allows to optimize the customer’s customer journey, making it more comfortable, attractive and adapted to their needs.

This is done thanks to machine learning, which allows you to program systems to make automatic decisions from the analysis of large amounts of data. It identifies patterns, learn and turn data into predictions. A step further goes deep learning, a subcategory of machine learning that seeks to mimic the human brain and allows to offer personalized and more accurate recommendations. These algorithms identify the intention and attitude of users who visit the website, making specific recommendations based on that data collected.

Another great achievement that AI has allowed in the field of user experience is undoubtedly visual or visual search. “Based on image recognition, it will have great applicability in e-commerce, as it will allow the consumer to locate objects on the Internet through a single description,” adds Duarte. For sellers, it will mean being able to manage their catalog more quickly and efficiently, recognizing models or colors automatically, but also new ways of relationship with their buyers, who increasingly rely on visual content in their personal and brand interrelationships.

Voice assistants are another AI app that is changing consumer habits, and have become such an unstoppable trend that not only searches already occur, but also purchases through these devices, which are called voice commerce or conversational commerce. Per recent studies, 51% of users already have voice assistants and 3% have made purchases through them. Forecasts indicate that they will become a dominant form of consumer interaction over three years, as users will consume much more using this technology, and in the coming years there will be more than 1.6 billion devices managed by voice language interfaces.

Customer Service is another field in which AI is advancing in great steps, as it offers natural language processing systems, called chatbots, which are already applied in areas of customer service and sales support, for example, through social media. They are an economical and efficient alternative that allows to implement virtual assistants to perform tasks such as online order management, the resolution of customer doubts helps during the process of buying and reporting market. In addition to being able to launch satisfaction surveys or perform actions such as remarketing campaigns for those who do not complete the order.

Logistics is also leveraging AI to provide increasingly powerful algorithms and applications to detect consumption patterns, perform predictive analysis, and design merchandise sales and replenishment strategies tailored not only to consumer demand but also to the interests of the company. In this field, companies invest in machine learning technology and robotic process automation.

With new advances in devices, the Internet of Things, 5G, etc., companies face new challenges in relation to their security. More than half of workplace managers say their cybersecurity analysts are overwhelmed by the huge volume of information units they must monitor to detect and prevent intrusions. In addition, the type of cyberattacks that require immediate intervention or cannot be resolved quickly enough by cyber analysts has grown considerably, especially automated attacks at speeds that only one machine can reach, which mutate at a rate that cannot be neutralized by traditional response systems.

With all the range of possibilities it offers online sellers, it is undoubted that AI represents an advantage for eCommerce. As the technology matures, it will continue to become more prevalent, taking a bigger role in all sales environments.