These commentators will perceive any advances in AI as a threat and will be far from first adopters.<\/p>\n
Regardless of which side of the argument you stand on, the truth it this: AI is growing exponentially, with spending on Artificial Intelligence in eCommerce set to reach $7.3 billion per year<\/a> by 2022.<\/p>\n We think the best way forward\u00a0for Artificial Intelligence in eCommerce is to embrace it.<\/p>\n But at the same time, we should combine AI and human insights – that way we\u2019ll have the number crunching power of AI on the one hand, and the subtle touch of the human mind on the other.<\/p>\n But how can we do this? Read on for our comprehensive list.<\/strong><\/p>\n Robots and humans search in very different ways. And yet, a big part of the online shopping experience is optimized for robots.<\/p>\n This is rapidly changing, however, with Artificial Intelligence in eCommerce improving the experience for human shoppers.<\/p>\n How do we optimize a search process for humans? <\/strong><\/p>\n First off, think of an old-fashioned bakery. As a traditional retailer, it offers a fairly high level of personalization based purely on human interaction.<\/p>\n The shop assistant or baker will give you product suggestions based on the conversation you\u2019re having and will complete the sales transaction.<\/p>\n This process is in tune with how humans behave naturally – essentially making the buying process part of a normal conversation. Online you typically don\u2019t have this kind of interaction.<\/p>\n That means you need to work harder to replicate those friendly suggestions from the shopkeeper.<\/p>\n At the same time, eCommerce creates new opportunities for shopping to become a more personalized experience than you might expect in a traditional shop.<\/p>\n To do so, you need site search that relies on artificial intelligence and natural language processing<\/a> to constantly learn from user behavior \u2014\u00a0because users\u2019 behavior constantly changes<\/strong>.<\/p>\n It allows human intervention when desired, but in the meantime, it automatically offers relevant and personalized results to the customers that an enterprise has worked so hard to attract.<\/p>\n Let\u2019s take a moment to think about how most people shop offline (and what that digital equivalent is).<\/p>\n Take a grocery store for instance, some shoppers know exactly what they want and go directly to the right aisle (faceted navigation).<\/p>\n Some wander up and down the aisles, seeing what items catch their eye this time (creative merchandising). Other shoppers go directly to the attendant and ask for help (site search).While in a physical store, with a few hundred shoppers per day and a limited number of products, a human staff can handle the needs of all visitors.<\/p>\n Online stores, with thousands of daily shoppers and even more products, need some additional help guiding their customers to the products they need.<\/p>\n AI enables personalization at scale<\/a>, so customers find what they need quicker, are more satisfied with the experience, and businesses see a higher conversion rate.<\/p>\n Without any personalization, shoppers have to navigate a digital warehouse of thousands of products without knowing where to start, and retailers have to make blanket decisions for every shopper – even though we know no one has the same shopping list.<\/p>\n A lack of personalization leads to suboptimal outcomes for both the customer and the retailer:<\/strong><\/p>\n A person\u2019s buying journey isn\u2019t simply about running through a list of requirements and matching these to a product.<\/p>\n Less tangible things need to be taken into account, like tastes, trends and people\u2019s never-ending search for novelty.<\/p>\n This is where the strength of combining a human touch with Artificial Intelligence in eCommerce comes into play.<\/p>\n Let\u2019s have a look at an example of collaboration between human and machine.<\/p>\n One of the most impactful applications of Artificial Intelligence in eCommerce is bury and boost.<\/p>\n The basic idea behind it is that you show your customers products with certain characteristics – the products they\u2019re likely to want to buy. At the same time, you hide products they\u2019re less likely to be interested in.<\/p>\n But, how do you know which products should be boosted and which should be buried? How do you set the rules?<\/strong><\/p>\n That\u2019s where AI comes in to help. <\/strong>AI will constantly analyze all behavior from visitors – how they reach your website, where they click, what they buy, etc\u2026<\/p>\n It will consider the individual visitor, but will also take into account the wisdom of the crowd that it\u2019s learned from all visitors.<\/p>\n This way it creates an in-depth picture of what an individual visitor is likely to be most interested in.<\/p>\n Take the example of Halfords<\/a>. They optimized their site search using AI. Every time someone visits the website, the AI starts analyzing their behavior and predicts what they might want to buy.<\/p>\n What does this mean for bury and boost?<\/p>\n Take a visitor who has been looking for bikes and bike accessories. If this person searches the keyword \u2018tires\u2019 next, the system will boost bike tires and bury car tires.<\/p>\n That way, the system adjusts to human behavior and not the other way around.<\/p>\n As clever as AI is, it\u2019s not in touch with the markets you serve in the same way you are.<\/p>\n Say a bike manufacturer decides to launch a new model bike. They\u2019ll probably announce when they\u2019re going to launch it and will make sure to promote it to the public as much as possible.<\/p>\n This is a real-world development AI is unlikely to catch, because it can\u2019t know about products that don\u2019t exist yet.<\/p>\n This is an opportunity for Halfords to go into the system and tell it to boost searches for these particular bikes, right as they\u2019ve been launched.<\/p>\n To further refine the search, they can boost searches for those visitors who are likely to be interested in bikes of a certain type, price range, etc\u2026<\/p>\n AI will take it from there and will further refine search based on past and future visitors.<\/p>\n By combining AI and human insights, your customers will have a more personalized experience. They\u2019ll find searching for products easier and it\u2019s likely their spend per visit increases<\/a>.<\/p>\n Using Artificial Intelligence in eCommerce \u00a0is a gradual process.<\/p>\n You don\u2019t need to become a fully AI-enhanced company overnight. At the same time, you\u2019ll want to make sure any personalization you do add to your user experience is part of a broader strategy.<\/p>\nOptimize Search for Humans<\/h3>\n
![\"Artificial](\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/ai-commerce.jpg\")
<\/p>\nPersonalize the Shopping Journey<\/h3>\n
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Give Relevant Product\u00a0Recommendations to Customers<\/h3>\n
![\"Artificial](\"https:\/\/www.bloomreach.com\/wp-content\/uploads\/2024\/05\/right-product-recommendation.jpg\")
<\/p>\nKeep the Human Touch<\/h3>\n
Result: Artificial Intelligence in eCommerce Leads to Converting Experiences<\/h3>\n