E-commerce: the impact of AI on this industry

The retail industry is going through a significant transformation. A growing number of brick and mortar stores are trying to increase their revenue by turning towards e-commerce platforms. These are using the latest technologies so that customers can benefit from a smooth experience.

The retail industry is going through a significant transformation. A growing number of brick and mortar stores are trying to increase their revenue by turning towards e-commerce platforms. These are using the latest technologies so that customers can benefit from a smooth experience.
Developers have been working on and deploying AI technologies such as machine learning, computer vision and reinforcement learning. These have led to the introduction of new e-commerce products and solutions for various scenarios that strengthen the retail value chain. Online shopping businesses either operate across platforms such as Alibaba, Amazon or AliExpress or they are incorporated into a brand’s official website. For instance, Nike, Tesla and Casper have such web stores.

The recent advancements in AI and digital technologies have led to a decrease in e-commerce operating costs. Thus, more retailers are able to revamp their business to include online shopping services. In 2018, the global e-commerce market amounted to US$2.8 trillion. This number is expected to grow by 75 percent to reach US$4.9 trillion by 2021. To have an idea of the importance of artificial intelligence, we can take a look at China, the world’s largest online shopping market. According to research, more than 80 percent of Chinese merchants have used AI tools in their businesses.

AI is becoming indispensable for the e-commerce market

Comments